Jim Kinney
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.
ABOUT THE AUTHOR
Fran Bailey shows, previews and tracks downtown Chicago homes for sale giving her the insights needed to help her clients negotiate the best price and terms. Fran has been quoted in numerous Chicago and national publications. To schedule showings of listings regardless of broker or to contact Fran email her at fran.bailey@bairdwarner.com or call 773.793.4516. Learn More
Fran Bailey, Realtor
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Is he saying it will take over 2 years for the luxury condo market to get back to normal?
Hi James,
Month’s supply refers to the number of months it will take to sell the current inventory of homes for sale given the recent rate of sales and assuming no more homes come on the market. It’s a way of showing the ratio of buyers and sellers. A balanced market that doesn’t favor buyers or sellers has around 6 month’s supply. Predicting how long it will take the Chicago luxury home market to recover is unfortunately, much more complicated.
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