Sales Slump in Chicago in the 4th Quarter; Inventory to Rise
Crain’s is reporting the fourth quarter Chicago sales statistics:
Builders sold 2,196 units in the quarter, a 51% decline from the year-earlier period and the biggest quarterly drop since the residential slump began more than two years ago, according to Tracy Cross & Associates, a Schaumburg-based real estate consulting firm. Homes sold in the quarter at the slowest pace in 15 years, the firm says.
Still, the experts aren’t grim about all of 2008:
As they head into the spring selling season, typically the market’s strongest period, builders “will be lucky to repeat last spring,” says Tracy Cross, president of the eponymous consulting firm. Still, he expects a recovery in the second half of the year, with annual sales rising 12% for all of 2008.
Yet, the slowdown in sales is clearly troubling. Inventory is rising. And we all know that dozens of new high rises are being built downtown.
Builders last year suffered most in the suburbs, where sales fell 39% to 11,565 units. City developers sold 4,121 units, a 32% decline, and could be in for more tough times as a slew of new downtown condominium towers opens up. About 3,500 unsold downtown condos are under construction and will be completed between now and 2010.
“Some of those buildings are going to have some trouble,” Mr. Cross says.
The spring selling season is about to begin. It should get interesting.