Market Overview
Updated June 14, 2009
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Updated June 14, 2009 |
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Annual Review |
Buildings |
Recent Sales |
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Community Areas |
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Annual Review (Based on 2008 Sales on the MLS) 2008 Condo Sales Volume Drops 27%, Units Sold Down by 30%, to 12,596 The dollar volume of condo sales in the city of Chicago decreased in 2008, by 27% from $6.4 billion to $4.7 billion. And the number of units sold in the city dropped by 30%, from 18,061 to 12,596. But, unlike in many other cities in the nation, the median sales price of city condos continued to rise, by 5%, from $295,400 to $310,032. The average market time increased by 22%, from 117 days on the market to 143 days. Those figures are based on sales of condos as recorded on the regional multiple listing service (MRED). Local industry experts attribute the increase in median sales price to the hundreds of new-construction units that we sold (contracted for) in the two years before the market declined, but that closed in 2008. As 2008 statistics confirm, Chicago is condos. Based on number of units, Chicago is the nation's third-largest condo market (and third largest population). In the city, 2008 condo sales made up 53% of all residential transactions (including multi-unit), compared to 58% in 2007. There are an estimated 260,000 condo units in more than 12,000 buildings in the city, with several thousand units added annually. Based on the 260,000-unit estimate and 2008 sales of 12,600 units, the turnover in 2008 was 4.8%. An estimated 20% of condo units are rented out by their owners. Some condos prohibit rentals. Condos create much of the city's skyline. Their prominence is especially evident along prestigious North Lake Shore Drive, the largest concentration of units. Most high-rises, and most luxury buildings, are located in three community areas along Lake Michigan: Near North, Lake View and Lincoln Park. The most desirable buildings offer magnificent views of Lake Michigan, are on or near Michigan Avenue or overlook Millennium Park. Recent years have seen rapid growth along the Chicago River, and west and south of downtown. Lofts, created by rehabbing vacated warehouses, are increasingly popular for their high ceilings and brick walls. Vintage buildings offer Old World charm and elegance. Conversions, of apartment buildings to condos, are occurring at a pace not seen since the 1980s and are generally 20% less expensive than new-construction units. More than a dozen condo hotels, the newest trend, offer room service to residents and rental income to owners. Thousands of two-flat condos are scattered throughout the city. Town houses can be either condos or homeowner associations. Co-ops, not listed in our database, are less than 5% of the market. Most high-rise co-ops are at the high end, especially on East Lake Shore Drive, but the first co-ops were two- and four-flats, and are still occupied throughout the city. Each year in the city, between 15,000 and 20,000 condo units turn over. That is roughly 2% of the 900,000 condos & co-ops bought and sold across America. More than 10,000 units are on the markter ("active") at any given time. In 2008, prices ranged from $6,000 for a 550-square-foot unit in Englewood to $5.9 million for a 5,400-square-foot, 3 bedroom penthouse in the Gold Coast's Palmolive Building. The citywide median sales price in 2008 was $312,032, $284 per square foot. That is less than one-third the cost PSF in New York City. The ultra luxury end of the market now brings in excess of $1,000 per square foot.
Recent Sales (2009 & 2008) Condo Market Indicators Year Over Year (May 2009 – May 2008)
Month Over Month (May 2009 – April 2009)
Statistics above based on MRED sales of condos. Total annual condo sales (2008 MRED): 12,596 units for $4.7 billion Condo sales as percentage of all residential sales in Chicago: 53% Inventory of unsold units (new construction and conversion):To come
Buildings (Based on the 12,000 buildings in our database, which includes virtually all properties with 25+ units, virtually all new construction and conversions, plus thousands of smaller buildings, including hundreds of two- to six-flats) Total buildings (for which number of units is known): 7,173 500+ units: 38 (0.5%);
New Construction: 571 buildings; Conversion: 362; Re-Sales: 11,067
Community Areas (77) (Based on 2008 CAR statistics and 2000 Census Data) Most Condo Units Sold: Highest Median Sales Price: Lowest Median Sales Price (among areas with 10+ sales): Highest Median Income (2000 census data):
Growth in Units Sold: Three areas with 10+ units sold saw an increase of units sold:
Increase in Median Sales Price Five areas with 50+ units sold saw an increase in median sales price in excess of 5%:
Decrease in Median Sales Price Eight areas with 50+ units sold, saw a decrease in median sales price of greater than 10%:
Links CityofChicago.org
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Lake Shore Drive, Suite 5305, Chicago, IL 60611
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