Is the Chicago condo market on the verge of making a comeback? Condo prices had their third consecutive month of year-over-year gains last month, which could be a good sign for both Chicago condo buyers and sellers alike.
According to the latest report from the Illinois Association of Realtors (IAR), the median price for Chicago condos are up 10.3% from what it was last year at the same time. Now the median price of a condo in the city is up to $299,000, which could indicate the beginning of an upward trend—or at least good news for the short term.
There were slight year-over-year improvements in Chicago condo prices earlier this spring, too. Both March and April had increases from March and April of 2010, although not as strong as in May (March median price rose 2.8% and April median price rose 4.3% from a year ago). When you factor in the May price gains, it’s the third month in a row of year-over-year growth.
Chicago condo sales are faring better than sales of single-family homes in the area—by as much as 30% by some accounts. However it is difficult to compare this year’s sales numbers to those of the previous year because the federal home buyer tax credit was still a factor at this time last year. Still, economists expect year-over-year sales volume to experience positive gains come summer’s end, according to a recent article in the Chicago Tribune about the IAR’s latest findings. In Chicago, sales are anticipated to go up 25 – 36% in July and August. And median price is also predicted to exceed that of May in both the city of Chicago and the surrounding region.
A significant portion of today’s buyers are investors. Many are able to pay cash for transactions, especially for distressed properties that can be bought for a fraction of the original selling price. In many instances, investors have purchased condo buildings or other multiunit residences to convert them into apartment rentals, which are in higher demand since the weak job market has made home ownership less feasible for people across the country.
