For 2009, the challenges remain:
- Unemployment levels remain high in the Chicago metropolitan area.
- There are still issues of consumer confidence.
- Price discounting is working in stalled projects and getting product absorbed; however, it could have a ripple effect and begin impacting other properties.
- 2009 will be another huge year for delivery of newly completed condo units; unsold, delivered inventory levels are already at a record high level and this additional completed inventory will generate even more competition in an already crowded market.
- Closing the sales of the units currently under contract at time of delivery will continue to be a challenge for developers, particularly due to the tighter lending standards (including Fannie Mae) and the increased hesitancy on the part of investor buyers.
– From the summary of Appraisal Research Counselors‘ 1Q 2009 Downtown Benchmark Report. Tomorrow, we’ll find out what glimmers of hope ARC sees on the horizon.
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