By now, I’m sure many of you have seen yesterday’s Chicago Tribune article talking about the opening of The Spire’s sales center. The Spire was also featured on some of the local tv stations.
There were some interesting stats in the article, though, which I thought I’d post here. It seems that interest in The Spire is pretty high:
Already about 600 people have made appointments to visit the sales office at 455 N. Cityfront Plaza.
“In this market, for the Spire to get several hundred contracts to move ahead with construction will be difficult,” said James M. Kinney, president of Rubloff Residential Properties, a Chicago-based, high-end broker.
“If they introduce 600 units priced at $2 million or more, that’s a 71/2-year supply for the downtown Chicago luxury market,” Kinney added.
But sales are slowing in the downtown Chicago condo market:
Through the third quarter of last year, buyers signed contracts to purchase 3,312 newly built downtown condominiums, a decline of 35 percent from a year earlier and off 52 percent from the record year of 2005, according to Chicago-based Appraisal Research Counselors.
“This year we expect sales to fall further from the strong level of 2004 through 2006,” said Gail Lissner, vice president at Appraisal Research. “There is no segment of the market that’s immune from the slowdown.”
But as sales fall, the downtown housing market will be inundated with new units.
This year, the delivery of new condominiums will rise to 6,300 units, up about 50 percent from two years ago, she noted.
We have also already seen some of the new units close and then come back on the market in the form of flips- which is also adding to the inventory.
The Spire’s sales will be watched closely. Stay tuned.
But, just admit it. You want to make an appointment to go and see The Spire’s sales center.
I thought so. Me too.