2008 has been a very difficult market for Chicago condos, for South Loop area of downtown, 2009 doesn’t look any better. In fact 2009 might be more difficult market than anytime before. As one of the cities hottest real estate market during the mid 2000′s, the lake and the museum campus made it sought after by condo buyers.
In 2009, over 2,000 new units will come to market as developers couple of years ago started building many of these in the South Loop area. They are offering many price reductions and incentives to get the buyer’s to purchase a Chicago condo. But it is going to be a challenging market for seller’s with many of buyer’s backing out of the purchase agreement bringing many more condos to the market.
With over 43 percent of available unsold condos in downtown Chicago, many Chicago condos will see pressure in the pricing as homeowners try sell the competing with condo developers. Many who have signed contracts will begin to back out of the pre-construction purchase contracts further pushing inventories and prices down.
If you are a long term investor, you should take a look at Chicago condos. With the possibilities of Summer Olympics coming to Chicago, these prime real estate just south of downtown loop might be a gem for investors who want to take some risk in the short term. The games will be held in close vicinity to homes along the lake front.
Some advantage of today’s market is the $7,500 tax credit for first time home buyer. Also with the 30 year interest rate hovering around 5 percent and 15 year fixed mortgage below 5 percent timing might just be right to purchase one.
One thing for sure, this down market in housing will rebound. If your sitting on the sidelines looking for right time, this might be it.
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