2013 Development Market Report
By Michael Golden and Thaddeus Wong on Feb 1st, 2014
2013 @properties report on development market activity & pricing trends.
Welcome to the 2013 @report, @properties’ annual overview of market activity and pricing in core Chicago neighborhoods, specially prepared for our developer, investor and institutional clients.
2013 was a great year for residential real estate in Chicago, as the market rode the momentum of record-low interest rates, tight supply and renewed buyer confidence to post impressive gains in transaction volume and price appreciation.
Throughout the entire Chicagoland region, residential unit sales gained 22.7% while total dollar volume increased 33.7% over 2012. In the city, unit sales were up 20.1% to 31,301, with dollar volume up 34.3%. And for attached (condominium and townhome) product in the 8 neighborhoods that comprise the @report, unit sales grew by 21.4% to 8,689 units, while dollar volume totaled $3.79 billion, a 29.7% increase.
We entered 2013 with a lot of optimism, and that optimism was confirmed, especially throughout the middle quarters when transactions and prices came roaring back in a manner reminiscent of the housing boom. Buyers showed their thirst for new construction as development sales activity was strong and steady wherever inventory remained. By the beginning of the 4th quarter, the market began to show some signs of fatigue; however, we have been encouraged by early 2014 traffic, as well as broker and buyer interest in projects set to launch this spring. We think 2014 will be another good year.
We are thrilled to be representing some of the first new condominium developments to hit the market in a number of years, including the new luxury condominium building 4 East Elm in the Gold Coast, and Webster Square, the redevelopment of the former Lincoln Park Hospital. We also successfully expanded our development-marketing services to the apartment sector and enter 2014 with two major residential leasing assignments: the 75-unit apartment component of Webster Square and the 198-unit luxury apartment building at 850 Lake Shore Drive.
As large-scale for-sale development returns to Chicago, @properties is excited to offer our developer-clients the most comprehensive and compelling sales and marketing resources in the marketplace: the #1 residential market share in Chicago; a sales force of more than 1,200 licensed brokers and their combined spheres of influence; award-winning in-house marketing; and an unrivaled track record for establishing and executing condominium sales programs on a full range of developments.
One change to note for this year’s report. Because we state pricing as a function of square footage, we have always reported the number of transactions within a given neighborhood as the number of closed sales for which square footage could be determined. This year, those numbers still exist within the quarterly and annual tables. However, when we reference the number of transactions within the text introductions for each neighborhood, the figures are based upon the total number of closings per the Multiple Listing Service (including listings for which no square footage could be determined). This provides a truer gauge of market activity, while the sample size of listings with square footage is still large enough to give an accurate picture of pricing.
Enjoy the @report, thank you for your support, and we look forward to working with you in 2014!
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