A rush of articles stemmed from yesterday’s Appraisal Research Counselors luncheon, including one from the Sun-Times suggesting we prepare for the “glut” of condos set for delivery this year. ARC noted that 5,900 new units will hit the market in 2008.
There’s another statistic from Gail Lissner‘s presentation that got less attention. More than half of this year’s pending deliveries are already sold – 4,200, according to ARC, leaving 1,700 left to be absorbed. Predictions for 2009 (which exclude proposals that haven’t broken ground yet) show 2,300 units already sold out of 4,200 under construction.
Regarding the numbers from Lissner, for every new condo there is bound to be some ratio of condo they new buyers currently live in that needs to be sold. As well, I would be 20%+ of the loop units are investment units waiting to be flipped. You can keep posting counter articles to show the numbers are not accurate, but reality is the mortgage crisis is still not reached it’s zennith, and there are a boatload of condos on the market.