Jim Kinney, Vice President of Luxury Home Sales at Baird & Warner, spoke about the Chicago luxury home market at my sales meeting this morning. Jim predicts that the luxury condo market will recover faster than the luxury house market. One of the reasons is that no new luxury hi-rises will be built in Chicago for at least 5, if not 10 years. There is also a 25 month supply of luxury condos for sale verses a 36 month supply of luxury houses.
Jim noted that besides the economic downturn one of the biggest hits to the luxury home market is the disappearance of “no doc” (no documentation) loans which were frequently used by luxury buyers to avoid disclosing their incomes. Other changes Jim has recently seen in the luxury home market include location having less importance with more people able to work at home and less stigma regarding foreclosure.