The article mentions appreciation from the Case-Shiller home price index over the past three years. Additionally historically low mortgage rates and very favorable housing affordability rates are very positive factors in this market.
The article goes on to quote several new construction sales agents. They are bullish about the past 12 months sales in their buildings and their sales forecasts. These must be taken with a grain of salt. Perhaps things are selling briskly where they are at, but when I hear about new construction I always consider that some of it may be puffery on the part of agents.
My experience in the market is that downtown homes are selling, buyers are just looking for that very very good deal. More specifically, buyers in this market feel like they are still taking quite a risk buying and want to feel they are getting something special. With the large amount of available inventory, sellers best tools are the the marketing their agent is doing and price.
In Marina Towers, there is one big factor at work now. Homeowners in the building recently received their tax bills. These differed wildly from what they have been paying. The last few installments were 25% to 30% less than this installment. This will affect home values in Marina City for the short term until the building or individual building residents file an appeal to have property taxes reduced.
