Problems in the real estate market in Chicago haven’t deterred one developer from continuing with a major project at Central Station.
Central Station Development Corp is planning two high-rise towers in the South Loop. A total of 795 luxury condominiums will be offered starting in 2008.
The South Loop area is yet another neighborhood in Chicago that has seen a drop in condo sales as a result of turbulence in the mortgage market.
Foreclosures are up around the city. Banks and lenders are tightening requirements for buyers making it difficult for many people to qualify for a mortgage.
According to the second quarter report from the Chicago Association of Realtors, condo sales in the Chicago Loop were down 20 percent over the same period last year.
Inventory is starting to build up on the market, making it more difficult to sell a condominium in the Loop. The current turnover time for the area is at 108 days, up 35 percent from last year.
As competition increases to attract buyers in the neighborhood, incentives and price cuts should become more common.
According to the CAR second quarter report, the average sales price in the second quarter was down less than one percent from the previous year. The market may have reached its peak in the Chicago Loop.
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