Tuesday, February 3, 2009

MRED: 2008 Sales Down 30%, Price Up 5%

According to 2008 city condo sales data from Midwest Real Estate Data (MRED), the multiple listing service for northern Illinois:

* The number of condo units sold in the city of Chicago in 2008 dropped by 30%, from 18,061 in 2007 to 12,596.

* The dollar volume of condos decreased by 27%, from $6.4 billion to $4.7 billion.

* The average market time increased by 22%, from 117 days on the market to 143 days.

* Unlike in many other cities in the nation, the median sales price of Chicago condos continued to rise, by 5%, from $295,400 to $310,032.

Local experts, including Dave Hanna, president of the Chicago Association of Realtors (CAR), attribute the increase in median sales price to the hundreds of new-construction units that were sold (contracted for) in the three years before the market declined, but that closed in 2008. (See item below.)

By comparison, MRED data released by CAR show that all single-family attached (Type 2) housing, a broader category that includes condos and all other attached units, decreased by 29% in unit sales, and median sales price was up by 8%. (See item below.)

In the city, 2008 condo sales made up 53% of all residential transactions (including multi-unit), compared to 58% in 2007.

The database maintained by ChicagoCondosOnline.com indicates that there are roughly 260,000 condo units in more than 12,000 buildings in the city, with several thousand units added annually. With 260,000 units and 2008 sales of 12,600 units, the turnover in 2008 would be 4.8%.

Based on MRED figures, the citywide median sales price of condos sold in 2008 was $284 per square foot.

For more details on Chicago's condo market, visit Market Overview on ChicagoCondosOnline.com.

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