Home News The 2020s have been lousy for Chicago’s downtown condo market

The 2020s have been lousy for Chicago’s downtown condo market

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The surge in housing demand is characteristic of the pandemic era and is the result of soaring prices. The median homes sold in Chicago rose about 39% between January 2020 and April 2022, before the housing market was hit hard. This is the latest data available on the online real estate market Redfin. The increase in condominiums alone is about 22%.

The numbers in the downtown neighborhood show that they are quite different from the rest of the city.

The median condos sold on the Gold Coast fell 1% in the same 28 months. Streeterville (up 8.4%), North River (3.8%) and South Loop (up 7.8%) are up, but weak compared to the city as a whole. The loop data shows that the median selling price has risen 13.3%. this is, Millions of dollars closed at Lake Shore East’s new St. Regis.

Compare these numbers with Hyde Park (median condo selling price increased by 58% during the period), Edgewater (30%), Westloop (24%) and Lincoln Square (23%).

“It’s sad to see,” says Christine Fara, head of the Gold Coast Exclusive Real Estate. “We see double-digit rises in the suburbs, which is good for them, but quite different in downtown.”

Crime is the biggest culprit, says Fara, Strauss, and other agents. Crime is occurring throughout the region and country, but more sensational crime is occurring in and around downtown. North Avenue Beach And for the last few weeks Millennium Park, producer Canceled the performance at the theater on Randolph Street and When Deadly shooting at Millennium Park.

For all these reasons, “buyers are still worried about living downtown,” says Susan Miner of the downtown company Premier Relocation & Real Estate Sources.

Restaurant owners say they are feeling the impact of a diminishing interest in living downtown. “Some Streeterville customers are reluctant to go out to restaurants at night,” said two Cocopats on River North’s Hubbard Street and Streeterville’s Ohio Street. Jack Weiss of Tso Restaurant says.

“It’s not the feeling of comfort and safety they had many years ago,” Wyeth said. Due to retail store vacancies and crime, some of the patina it had was lost. “

This does not mean that the downtown condominium market is dead. This year there were big marquee sales like the $ 20 million Trump Penthouse. $ 17 Million Sales on No. 9 Walton Street And three St. Regis condos cost more than $ 8 million, and four more developers have marked them as pending sales.Inventory is low compared to The worst part of the pandemic: Condos for sale in downtown spur sales for about five months, but even that healthy figure is almost double the city-wide 2.6-month figure.

Berkshire Hathaway Home Services Chicago agent Gwen Hughes says some buyers are seeing opportunities at low prices in downtown. For example, at Water Tower Place, condo sellers on the 71st floor are demanding about 21% of the $ 1.4 million paid in 2005, just under $ 1.1 million.

“If you’re a long-term fan of the city, you know it’s coming back, and you’re buying now,” Hughes says.

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