Buyer demand, in Chicago’s “hottest” neighborhoods, has continued this spring and will likely continue throughout the summer and fall. Inventory levels remain low throughout Chicago’s best neighborhoods such as Streeterville, River North, Gold Coast, West Loop, South Loop, Lincoln Park, Lakeview…need I go on?
We are seeing many first time buyers enter the market, but they are not the same first time buyers we saw years ago. The last real estate crash scared many away from buying for a significant period of time. Therefore, we are seeing many first time buyers that have established families and excellent income levels. Many think when we say the “first time buyer market” is hot, we are only talking about cheaper condos priced between $100,000 and $300,000. This is no longer the case. Many first time buyers are now couples with children who are purchasing larger units throughout the city at, and even well above, $500,000.
In-Town buyers are back again in full force as well. What we thought may have just been a fad when interest rates were at 3.5%, second home buyers continue to pick up property in Chicago. To clarify, what I mean by “In-Town” buyers are people who have their primary residence elsewhere and are purchasing a home in the city to use on the weekends and holidays, etc. These buyers are not just purchasing small studios, but instead are purchasing everything from high level, large One Bedroom condos (think Trump or The Pinnacle where 1 Beds sell for $525,000 on up) and even single family homes!
If you follow national on the real estate market you will see random stats such as new home starts are skyrocketing but at the same time builders confidence level is decreasing. Some stats are showing that there are less first time home buyers than a year ago. I can see this being true, but after all we had so many people sit on the fence for several years that it would only make sense we would see one year (last year) with an abnormally high amount of first time home buyers. We can’t compare every year to last year! Though, economists always love to do that.
In conclusion, what should you take away from this? The condo market in Chicago is very healthy. Supply is low, demand is high across the board from various types of buyers and buyers that are interested in various types of products. This means the market is healthy; it is as simple as that.