“The real tale of the two condo markets in the Chicago center city is told in the pricing problems that existing units are having. In the past six months, there were 3,338 condo units that sold in the six neighborhood markets that comprise the center city. These sold units were only 57 percent of all of the units that were listed on the market at the time. In other words, 43 percent of the units for sale did not sell.”
– Peter Fugiel, of Century 21 S.G.R. Inc., in his essay “What current market stats are indicating about the six neighborhoods that make up the new center city.”
Fugiel’s “new center city” comprises Diversey Avenue to 16th Street and the lakefront to Ashland Avenue.
What is basis for considering”new center of city” all the way from Diversey to 16th? There is a great deal of projects between 16th and I-55 more consitent with a core urban center.
This is the first time I’ve ever seen 16th St used as a boundary – makes me wonder about the rest of what he has to say.
And, there are far more than six neighborhoods within the boundaries he’s stated.
“The real tale of the two condo markets in the Chicago center city is told in the pricing problems that existing units are having
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I would like to comment that the issues are copmpunded. It is not just a pricing problem. Also an over-development problem and a lack of qual’ed buyers problem. The NAR claims 70% owership. That last 30% will be hard to drag out of their holes, esp at today’s prices. Incentives be damned.
I would go as far south as I-55 or perhaps a few blocks beyond and possibly as far north as Armitage.
Beyond that it seems like a stretch. Maybe Fullerton.
Does this mean that the market times are greatly increasing then? Or are sellers simply pulling their units off the market?
So, this is good news for developers, bad news for condo owners.
I’d caution against reading anything into these numbers.
The only thing I read from these numbers is that inventory is moving so that’s great news for the bubble naysayers.
“The only thing I read from these numbers is that inventory is moving so that’s great news for the bubble naysayers.”
Not sure I totally agree; there some large projects moving from contract or construction to complete status in the last 6 months of 2007 and in early 2008. Some of these projects have a strong speculator/investor presence, so it will be interesting to see what immediately comes back on the market. One Museum Tower may be a good benchmark, as it almost complete original sales from 2005/2006, with closings starting in 2Q of 2008. At sales launch party, we ran into quite a few people who had purchased multiple units, including some real estate agents.