According to Thomas Horwich, co-owner of Rubloff Residential Properties, there is a “supply bubble” in Chicago’s new-construction condominium market.
“Some condominium projects are selling slowly, and some developers are seeking to extend their mezzanine financing,” said Horwich.
An overall market supply bubble? No. While true that the new construction condo market is becoming increasingly competitive, we are entering a period of marked winners and losers: a tremendous amount of variation in the success of projects. Because of location, design and pricing, some will get it completely wrong and be a complete flop, failing to secure construction financing, while others will nail down all 3 perfectly and qualify for a construction loan within a few months of their grand opening.
Sounds like the start of a bubble to me.