The Chicago real estate market is one of the most vibrant in the country. There are several major developments of luxury condominiums underway around downtown.
However, many neighborhoods are seeing a drop in condo sales and an increase in inventory that could lead to a decline in sales prices around the city.
According to the most recent report from the Chicago Association of Realtors, the number of condos sold around the city of Chicago dropped by 5 percent during the second quarter of 2007.
Many buyers are unable to qualify for a mortgage due to tightening restrictions in the credit market. Banks and lenders are protecting themselves after being hit hard by an increase in foreclosures around the country.
Since fewer people qualify for loans in the city, many Chicago Condos are sitting on the market longer.
According to the Chicago Association of Realtors, the average turnover rate across the city was up by 10 percent during the second quarter.
Prices continue to rise, but could drop in the short term if demand remains at current levels. Also, as new developments come on the market, the supply of condos for sale will increase even more, creating a downward pressure on the market.
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