The downtown Chicago condo market put up strong numbers in 2012, with sales of existing condos rising 31.2 percent over 2011, according to analysis by the Appraisal Research Counselors.
In addition, the median sales price for condos in downtown Chicago was $300,000 for the year, a 2.6 percent increase.
Downtown Chicago Condo Market Strong in 2012
As the Chicago Tribune noted, this is some of the best news for the downtown Chicago condo market in years, which was one of the hardest hit segments of the housing downturn. Other key developments the Tribune pointed out include:
- The housing supply of downtown Chicago condos showed substantial improvement; while the average sales price per square foot increased in 2012 (based on the 65 downtown buildings studied by Appraisal Research Counselors), the number of distressed sales fell, declining from 28 percent of sales in 2010 to 17 percent in 2012’s second half.
- Also, the downtown Chicago condo market, like the rest of the city, has seen its inventory levels plunge, with only 1,104 newly-constructed condos currently on the market (and 500 of those units belonging to the recently-branded “South Loop Luxury” by Related).
- According to Related, there have been 40 sales at the three-building South Loop Luxury development since December; in addition, the Tribune noted that there have been 16 sales at the 48-unit Park Monroe Phase II and 18 sales at the 40-unit CA3.
Gail Lissner – More Transactions a “Really Good Indication of Demand”
Gail Lissner, a vice president of Appraisal Research Counselors, said during a Tuesday briefing on Chicago’s housing market that the condo market is improving.
“When we see more transactions occurring, that’s a really good indication of demand,” Lissner said. “The look of the condo market has changed in terms of unsold inventory.”
“These are all great indicators of strong sales,” she continued. “Price stabilization has occurred in the market. You don’t hear people talking about bottoming out. That was so yesterday.”