The busiest time of the year for home builders is typically
the spring season and this year’s second quarter did not disappoint. New home sales grew in both Chicago and the
Tracy Cross &
Associates, a national real estate research firm, revealed that
over 1300 new homes were sold in the major Chicagoland area just in
the second quarter. This represents a
40% increase in the 2Q2013 from the 2Q2012.
They predicted that at this pace, there could me as many
5,000 new home sales by the end of 2013.
This would be a 46% overall increase year over year. As a matter of fact, if new home sales exceed
5,000 in 2013, it will be the busiest year since 2008, which says a lot for
Additionally Tracy Cross revealed that the city of Chicago
exceeded the surrounding suburbs in new home sales growth by more than
double. Chicago increased their new
home sales by 81% in 2Q2013 and the suburbs only increased by 31%.
Shockingly, condominium sales accounted for more than half
of Chicago’s second quarter boost, and 154 units alone came from 2 fractured
condo developments which were brought back to life, South Loop Luxury by
“You wouldn’t have this level of sales at all
these suburban developments if (buyers) didn’t have some confidence there was
security in their investment,” said Erik Doersching vice president of
Tracy Cross & Associates, in an
article by Chicago Real Estate Daily.
He added that the growth in new home sales is mainly due to
the growing confidence in consumers. He
also said that there could be a increase in demand on new homes due to fewer
developments this year. Last year there
were 394 new developments in 2012, so for in 2013 there are only 320.
Nonetheless, new homes is typically a sign of a growing
market, however, one might think what affect the foreclosure inventory still to
be released in Chicagoland will have on new building developments.