Chicago Condos Market 2010--What Is In Store
Just like elsewhere in the country, 2009 did not prove to be a good year for Chicago condos market. Both the brand new condos and resale condos did not sale well during the last quarter of the previous year. If you compare the picture with that of 2008, you will notice a 36.5% decline in the sales. This drop in the sales caused stagnation in the prices of more expensive Chicago condos. For example, in South Chicago and downtown area, the condo prices dropped by 22% at an average.
However a wave of optimism hit the nation at around the same time. Now it is to be seen how this wave of optimism benefits the real estate markets across the USA. So far as Chicago condos market is concerned, the real estate experts predict a turn around but at a slower pace. According to the data gathered from a few recent surveys, Chicago area will not get more than 5000 residential condo units this year. During the condo boom of 2005, this figure was around 30,000 units higher than the current figure. However, the trend definitely shows an upward curve as it is a straight 4,000 units jump from 2009 estimates.
So far as developers are concerned, they are still not fully convinced that increasing number of buyers will return to the market this year. But the silver lining of the cloud is: still the builders and developers have given green signal to several condos projects in Chicago area. In this regard, West Point Builders' president Patrick Curran's statements are worth mentioning. He was quoted to say that, "After the job market improves, the pent-up demand should increase housing sales. But it boils down to pricing. Construction unions will have to bend on the cost of labor."
Many other developers however believe that there are other reasons than price which will prevent a large number of buyers from entering the market. Tougher FHA loan requirement is definitely going to be one of the obstacles. Some experienced real estate market watchers are concerned that changes in FHA rules may result into a 20% drop in the sales of Chicago condos in the upcoming days.
These kinds of speculations have led some builders to shift their focus from condos to town homes. With spacious floor plans and added amenities such as double car parking and full basement, they are trying to draw more buyers for their town home projects. But Chicago condos will continue to hold their value and appeal believes the experienced market watchers. Although there would be fewer luxury projects this year, the suburbs are going to get several new residential projects. Keep an eye on these suburban Chicago condos projects---with a lower price range that can offer you excellent value- for- money investment option under current market situation.
