Chicago Condo Directory

April 27, 2009 - If the price is right, people will buy. At least that’s the trend evidenced by the latest new Chicago home sales numbers gathered by real estate consulting company Tracy Cross and Associates. In the suburbs as well as at downtown Chicago real estate projects, more developers are offering price reductions instead of other incentives or unit upgrades. According to a recent Crain’s article, Tracy Cross found that 9 of the top 10 selling suburban developers lowered their prices an average of 11.4% in the first quarter of 2009 from first quarter 2008 prices.

Centrum Properties principal John McLinden was quoted as saying, “That’s a good sign. It’s a sign that there actually is a market at a price.” Of future sales he also stated that, “You’ve got to get into 2011 before you see things fully stabilized and a balance of supply and demand. We’ve got an overhang now that just needs to be absorbed and it’s going to take time to do that.”

But not all units that go under contract actually result in sales. Tracy Cross also reports that of 183 Chicago condo and townhome developments, 32 of them projects had more cancelled contracts than new ones in the fourth quarter of 2008. And 59 of them had no sales at all.

In all, developers are projected to sell about 3,487 new units this year. That would be a 17% increase from fourth quarter 2008 sales, but also well below the 6,451 units that were sold last year. With buyers looking for better deals in terms of base prices and not necessarily luxury upgrade incentives on Condos In Chicago, developers may have to rethink how they market their remaining units.

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