Chicago condo sales have risen over the past several months, with restored confidence in the real estate market driving demand and price appreciation in sought-after neighborhoods. These are key indicators that the market will continue to improve over the next few years, presenting opportunities for buyers and sellers alike.
But as Chicago condo sales continue to increase, inventory is being depleted to historically low levels. In fact, condo inventory is at the lowest overall since tracking began in 1997. David Wolf, president of Related Realty, recently shared his insights on the state of the condo market at the Marcus & Millichap Multifamily Forum, where Chicago’s real estate leaders gathered to examine the multifamily housing market. He shared a number of factors that can help people looking to buy or sell a condo in Chicago make an informed decision:
• New construction is making a comeback: The lack of construction during the downturn has contributed to today’s low inventory, but developers are recognizing opportunities and beginning to announce new projects. One such developer, Akara Partners, recently engaged Related Realty as the exclusive leasing team for 100 West Huron, a 28-unit condo building scheduled to break ground this fall. The 14-story building will include two-, three- and four-bedroom plans, a fully equipped fitness center, dog run and 24-hour door staff. As more developers act on current market conditions, buyers will begin to have more options.
• No large-scale developments on the horizon: While Chicago is still two-to-three years out from any large-scale new construction projects delivering, there are a number of smaller-scale new condo projects underway. For example, buyers can find an influx of three- and six-flat projects in areas like West Town, Wicker Park and Bucktown.
• Time is running out for existing inventory: The current sales pace and number of existing unsold condos suggests there is less than one year of inventory remaining in the market. Buyers interested in making a purchase should act now, while there is a greater choice of condos. South Loop Luxury by Related, a collection of 504 condos across three towers next to Chicago’s famed Museum Campus, represents one of few opportunities to purchase newly constructed condos in downtown Chicago. Each tower includes an array of upscale amenities, something that is unavailable in smaller condo buildings.
Chicago’s condo market is on an upswing, which is good news for both buyers and sellers. But understanding what’s driving that growth gives buyers and sellers the tools needed to make the right decisions. To speak with an agent about buying or selling a condo in Chicago, please contact Related Realty.