Chicago's Condo Sales Slowdown

Crain's Chicago Business reports:

Sales of new homes downtown are grinding to a halt, casting doubts over when the market for trendy condominiums and townhouses will begin to recover.

New-home sales plummeted 73% to a record-low 685 units during the first six months of this year, compared with 2,443 units in the first half of 2007, according to a report by Chicago-based residential consulting firm Appraisal Research Counselors. The dismal results would have been even worse without the proposed 150-story Chicago Spire, which accounted for more than half the total.

Sales are expected to continue to fall this year, making it unlikely that the market will reach a total of 1,200 contracts in 2008, far below the previous low recorded by Appraisal Research of 3,258 in 1998.