Are we at the bottom and in sight of an up turn? That's what I want to know.Well, I just got out of my all-company meeting where we had a very nice speaker from an appraisal reasearch firm. I'd like to share some of the facts because some are startling. All of this information is based on downtown Chicago development projects, which I know isn't all of Chicago, but it can at least give us a good sense for what's going on in our market place.
*Weekly sales in developments downtown (North Ave to McComick Place)
2005 = 115/week
2008 = 30/week
*Traffic and conversion rate (buyers interested and writing contracts)
2005 = 8%
2008 = 4%
*Speculator market has decreased dramatically and 6 development projects have been cancelled in 2008
As you can see by the stats above, 2008 is a down year for Chicago Real Estate. Now, here's the good news...
Because projects are being cancelled and the speculator market has decreased, we have a good chance of rebounding in the next couple of years with lower inventory. My prediction is that we are at rock bottom and the only way is up. By 2010 we will have much lower inventory and therefore demand should increase.
I'll also leave you with a good thought:
According to the MLS, Average Prices in 1988 and the increase in 10 years
Studio $47,500 ==> today is 7.49% higher
1 Bedroom $79,400 ==> 7.27% higher
2 Bedroom $170,400 ==> 6.16% higher
3 Bedroom $361,400 ==> 6.81% higher
Now who said prices were declining???
