November 26, 2011 – In our last post we told you about the latest Appraisal Research Counselors report that stated there were 229 Chicago condos that closed during the third quarter of this year. That’s more closings than the 196 that took place in the second quarter of this year, but is still down from the 251 closings in the third quarter of last year (2010). The report, which was the focus of a Crain’s article, also pointed out that 614 downtown condos and townhomes closed during the first nine months of 2011, which is lower than the 1,431 units that closed during the same period last year (2010).
The article also goes on to say that there were 51 Chicago condos and townhomes that went under contract from January through September of this year. Buyers inked 302 sales contracts during those same nine months last year. Not all of those contracts closed though, and there will most likely be buyers who can’t or won’t close on the new contracts as well.
ARC also states that Chicago area condo inventories are slowly falling, attributing much of that decrease to developers who switched several condo projects to rental. About 2,198 condos and townhomes were still unsold in the third quarter of 2011. That is close to the number of unsold units that stood on the market in 1998. And with just Lincoln Park 2520 and the Ritz-Carlton Residences being the only major developments set to deliver next year (2012), there won’t be a big dump of new Chicago condos on the market any time soon.