In the last 10 years dozens of large condo buildings have been constucted in downtown Chicago. During the boom years these condos sold well.
In the 4th quarter of 2008, sales of new condos in downtown Chicago turned negative as many sales contracts were cancelled. Now, there is obviously a glut.
The Chicago Sun Times reports that:
And in the fourth quarter, the number of residential sales was a negative 250 units.
How can that be?
The numbers are drawn from an annual survey that Appraisal Research Counselors reported Tuesday. They are the worst results anybody can recall for the reports, which the company has compiled in quarterly updates since 1997.
Overall, 592 condos sold in central Chicago during 2008, the survey found. The result was abysmal for a market that has generated annual sales of 4,000 to 8,000 units.
The condo market in downtown Chicago has collapsed compared to 2005 or 2006. Prices are falling and will continue to fall during 2009.
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