Tracy Cross & Associates is out with a report on new home sales in Chicago and the Chicagoland area in the third quarter.
While sales appear to be recovering in the suburbs, the city actually saw sales fall 42.5% from last year.
Without annualizing sales and adjusting for seasonality, developers sold 740 homes in the third quarter, up 8.2 percent from 684 sales a year earlier. Only 84 of those sales were in the city, where new-home sales dropped 42.5 percent from the same period last year.
Such an annual gain would be the first since 2005, but the recovery isn’t being felt everywhere. The housing bust all but stopped condominium development downtown, where many urbanites are choosing to rent instead of buy in a city with shiny new apartment towers and a still uncertain condo market.
“The former buyer now becomes the renter in the city,” said Mr. Cross, president of his Schaumburg-based consultancy.
Yet single-family sales have jumped 36 percent on a seasonally adjusted annualized basis over last year in the suburbs, where builders face less competition from the rental market. Sales of suburban condos and townhouses also rose 6 percent in the third quarter.
“People are tired of waiting around, whether buying a new home or downsizing, the buyers we’re serving are ready to move on with their lives,” said Brian Brunhofer, president of Deerfield-based Meritus Homes, which has sold five homes in northwest suburban Long Grove after opening a 20-home development there 90 days ago.
2012 is on track to see 3,221 new home sales, a 11.1% gain from 2011.
While that may sound great, developers sold 33,287 at the peak of the boom in 2005.
We’ve been chattering about the new construction rental high rises all year long.
Is this another sign of a change in how city dwellers view home ownership or would people be buying if there were new townhouses and single family homes actually for sale in the city?
Nearly every development I’ve seen in the city has been condos.
New home sales jump in burbs, sink in city [Crain’s Chicago Business, David Lee Matthews, October 30, 212]