To get an even better handle on the market for new condos we consulted Erik Doersching of housing analyst Tracy Cross & Associates, which tracks sales of new condo developments with 10 or more units.
Doersching reports that in 2006, 6,125 new condos were sold citywide (purchased, not closed), down 16 percent from 2005. He says first quarter sales for 2006 were robust, and the market started to slow from there. In the fourth quarter of ’06, 1,024 units were sold, down 26.8 percent from the same period in 2005. Generally, new home prices have plateaued since September as developers adjust to the realities of an oversupplied market, Doersching said.
That said, the annual sales volume for 2006 was still higher than in any year between 2001 and 2003, he said.
But: “[Chicago] certainly is beginning to function much like the nation and the rest of the region,” Doersching said.