Lately I’ve been seeing nearly identical new condominiums – in some cases from the same developer – selling for similar prices in locations that I consider to differ widely in value.
It’s possible, of course, that I’m misjudging the appeal and underlying value of the locations I’m comparing. I don’t think that’s the case. It’s more likely, in my opinion, that buyers are paying speculative prices based on a shortage of new construction homes.
When Chicago real estate goes into one of its periodic and inevitable down cycles, the price of condos in less desirable locations will plunge, while the stronger locations will decline relatively less in price.