Although properties in the downtown Chicago area are on the market for longer periods of time, resale properties are not going down in price. Prices in established buildings are still going up…and the reason for this rise is the cost per square foot. When you compare the prices of these buildings vs new construction, the cost is considerably lower.
With some new construction buildings approaching anywhere from $800 to $1,000 per square foot or more in Chicago, buyers are purchasing properties in premium locations and redoing them to fit their individual taste for less money than it would cost to have a condo in a new construction building.
According to Jim Kinney, my broker manager at Rubloff Residential Properties, the Carlyle, a 1960 building along the prestigious Gold Coast neighborhood, recorded the highest price ever- $2.4 million – for one of its “C” tier units earlier this year.
Jim just recently did an analysis of sales in buildings along the Gold Coast and he reported that “80% to 90% of the buildings achieved a record sales price in the last year”. Jim also cites the cost per square foot differential as the primary reason for this increase.
In addition, I am finding that second home purchaser’s, or empty nesters, are coming in from the suburbs to be close to Michigan Ave and all of its shops and activities that are within walking distance.
Even in a difficult real estate market, I am finding that clients are agreeing with my recommendation that they give primary emphasis to the basic premise for future resale values. That is; location, location and location. With gas going for record prices, I anticipate in future years the cost for transportation shall be in even higher. It now makes sense to purchase property in the downtown area, close to Michigan Avenue and within walking distance to virtually everything.