Downtown Chicago Condo Resale Prices on the Decline

September 01, 2012

chicago condos at nightAccording to a survey conducted by the Appraisal Research Counselors, Chicago condo resale prices have fallen 18 percent since 2008. Almost every neighborhood in the city has been affected by the decrease, though the Gold Coast is faring better than other areas such as the South Loop.

A lack of buyer interest after the market began declining in 2006 is a major reason for the price drop in Chicago new homes. While the Gold Coast neighborhood only suffered an 11 percent decline in resale prices, the South Loop suffered a 30 percent drop.

The survey included more than 20,000 condos in the North Avenue, Cermak Road, Lake Michigan and Ashland Avenue area. In total, this area contains more than 80,000 condos, which is around a quarter of the entire Chicago condo market.

Price changes were calculated by comparing per square foot prices of closed sales in each building. Gold Coast square footage had the highest price, coming in at an average of $433 per square foot. The condos with the highest price per square foot in Chicago can be found at The Park Tower on 800 North Michigan Ave, where costs are $760 per square foot.

Since 2008, prices have increased at only three downtown buildings, which include the Park Tower as well as the Regatta, located in the Lakeshore East development and the Bristol, located at 57 E. Delaware Place.

One of the main reasons behind such low prices is that the sale of foreclosed condos have accounted for 28 percent of all condo resales in early 2012.

However, recent findings show that Chicago-area single-family homes and condo sales increased 29 percent from July of last year, which means some relief could soon be on the horizon.

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