With all the recent news about the rebounding of the real estate market nationwide and in the Chicago area comes news that Chicago apartment sales levels are down. So why the conflicting numbers?
While it's still a sellers' market for apartments, it turns out that fewer landlords in Chicago are selling. According to Appraisal Research Counselors, a Chicago-based consulting firm, sales of apartments have totaled $1.48 billion so far this year which represents a 12 percent drop from 2012. On the other hand, suburban Chicago apartments are up 26 percent totaling just over $900 million. Downtown Chicago sales have fallen to $580.2 million which represents a 40 percent decline.
Prices have skyrocketed and demand for apartments has been strong the past few years. Rising rents, high occupancy levels and low interest rates have fueled demand. Additionally, landlords are having a harder time filling their high-rises due to the development boom.
Seven new buildings this year and six more next year may end up resulting in more big buildings coming on the market soon but the overall market is unlikely to match its 2011 peak of $1.4 billion in downtown sales.
Meanwhile, rents hit a record high in the suburbs in the third quarter. So it's really a tale of two areas when it comes to apartment selling and renting in the Chicago area.
If you'd like to learn more about how these numbers could affect a new apartment purchase, click here to contact the Chicago real estate experts at Menard Johnson. They've been in the Chicago real estate business for over 30 years and can help you find your next home.