Downtown Chicago condo prices are now rising above 2008 price levels. According to a newly released report from Appraisal Research Counselors, the end of 2015 brought average prices to $421 per square foot. That’s about 1.7-percent higher than 2008.
While the firm is forecasting some new development for 2016, new condo sales have remained quite modest over the past couple of years. They totaled just 400 units sold in 2014 and another 415 sold in 2015.
Most new condo construction is now being tied to buildings also offering rental units. One of these is One Bennett Park in Streeterville. This luxury development is expected to offer peak market prices in both condos and rentals.
While a limited amount of new condo construction is likely for the future, current condo owners are expected to benefit when selling, due to a small supply currently available to prospective owners. Right now occupancy rate is at more than 93-percent.
According to Appraisal Research Counselors, there are currently 16 buildings set for completion in 2016 or 2017. They are also expecting nine to begin construction sometime over the first six months of 2016.