1Q 2016 Chicago Area New Construction Update
Posted by Leo Clark. on Sunday, May 8th, 2016 at 2:10pm.
As we move through the busy spring market, new statistics are coming out regarding new construction in the Chicagoland area with some surprising, and not so surprising trends happening all throughout the city and suburbs. Let’s take a look at a few quick ballet points:
New Construction Sales are Down — With the first quarter of 2016 now in the rear-view mirror, we’re now seeing a decline in new home sales compared to a year ago, which includes transactions all throughout Chicagoland. According to a report from Tracy Cross & Associates, new construction single-family home sales have dropped 14.2%, while new home sales overall, which includes condos and townhouses, have dropped 8.3%.
New Construction in the South Loop Area is on the Rise — Out of the top 10 Chicagoland locations with the most new home sales, the South Loop area (officially Chicago Near South Side) is the only place you’ll find in the city. Pingree Grove, Naperville, Plainfield, Elgin, Aurora, and Volo round out the top 6, with the South Loop ranking 7th with 34 new homes sales in the first quarter of 2016.
New Construction Outlook — Although the first quarter numbers are down from last year, it’s also important to note that new construction overall has seen tremendous gains over the last few years. Sales prices for new construction homes also continue to rise, with reports showing the average sales price in the first quarter set at $344,220. That’s up an astounding 21% from the first quarter of 2013, and compared to the suburbs, sales prices in the city have risen substantially more.