With more people renting than buying, condo developers are taking advantage of the trend, increasingly converting condos to rentals. As a part of that trend, there were only 174 Q1 sales of downtown condominiums, according to downtown developers and consulting firm Appraisal Research Counselors. That number represents a drop of 82 sales compared to the year prior.
While 174 condo sales mark a slight improvement compared to the prior quarter, it clearly isn’t digging developers out of all-time low numbers over the past five years. Even so, supply is slowly starting to match demand, according to the same report. With fewer new constructions, there are currently just 2,031 unsold condos on the market, as compared to 4,182 last year and 8,222 in Q1 2008. The number 2,031 also represents an all-time low in number of condos on the market in the past 14 years.
Part of the reason that supply is starting to meet demand is not just the amount of condos selling. It also has something to do with developers producing fewer buildings as well as converting existing developments into apartments. One example of this is Crescent Heights, a developer which bought Astoria Tower from the lender back in December. All 205 units in Astoria are now being rented out.
So what do fewer condominiums on the market mean for a buyer? Currently, it means that prices are still quite low, but if supply starts to really match demand, prices might start going up.
It also means that, while there are fewer condos on the market, there are still plenty of condominium options for buyers. Here at CondoDomain, in fact, there are nearly 39,000 units for sale both in Chicago and in the suburbs. This number includes all sorts of units both location and size-wise. Choose from a condo steps away from the lake to townhomes in the suburbs.
In additon to searching CondoDomain’s MLS, the Website also does list new developments in Chicago, proving that, while fewer developments are happening, developers are still continuing to both build and renovate buildings in the area.