340 on the Park Condominium

LOCATION, LOCATION, LOCATION!!!

The National real estate market is definitely seeing some pricing adjustments. Savvy buyers and sellers know that local information is what matters most in real estate. The condominium prices in GREAT AREAS and GREAT BUILDINGS are strong and rising in many cases despite the National trends. Yes, the condominium inventory is rising, but that is because well-informed owners are pricing correctly and waiting for the informed buyer.

Chicago Magazine bolsters this point with an article on January 23, 2008-
Not all resale units in new buildings are value-priced. Kinney says that at a hot property like 340 on the Park, the handsome and ecologically friendly new tower that overlooks Millennium Park from the north, re-sales may get a normal-year markup of as much as 10 percent.

Many buyers extrapolate National trends into the local markets. This type of over-generalization often puts those buyers in a position where they expect more than the local market is willing to give. Owners of very desirable property, such as condominiums in 340 on the Park, hold out for prices based on local information rather than the National trends. Even the broader Chicago market, experiencing value reductions, is impacting the premium markets less than you think.

One of the biggest determinants of value in the real estate market is “scarcity.” There are simply no more building sites available on the Northern exposure of Millennium Park. Period. The limits to lake and park views, as well as lake and park access are scare as well. There are even fewer locations with proximity to shopping, restaurants theaters and museums. There may be some deep discounting going on in some “overbuilt” sections of the Chicago condominium market, but premium and “scarce” properties will continue to hold their own.

My observations are supported by today’s NAR reports-

NAR REPORTED TODAY [02/14/2008]
In the fourth quarter, 73 out of 150 metropolitan statistical areas(1) show increases in median existing single-family home prices from a year earlier, including 11 areas with double-digit annual gains and another 12 metros showing increases of 6 percent or more; 77 had price declines including 16 with double-digit drops.

Chicago Condominium Median Prices - In spite of NATIONAL ISSUES, local market is still very strong.
2005     $ 212,700
2006     $ 222,500
2007     $ 232,400

These numbers reflect the Chicago, Naperville and Joliet areas. The premium property markets in extremely highly desirable areas (such as on Millennium Park) have even stronger numbers. I will post the more specific numbers once they become available.

Victoria and I are optimistic for the New Eastside condominium market and are forever bullish on 340 on the Park.

Patrick and Victoria Carton
@propeties
(312) 731-2500