Sunday, July 28, 2019

Chicago Housing Market vs. Condo Market – Who Wins?

-- Intended for New College Graduates --

(Click on the image to enlarge)

The above graph shows that the Chicago housing and condo markets moved more or less in tandem except in the most recent two quarters when they diverged -- the housing market moved sideways while the condo market slowly but steadily trended up.

Due to the prior run-up, neither market has responded favorably to the recent declines in mortgage rates. 

The cap on SALT has impacted severely the high-end market, especially the expensive high-rise condo market in the city center and along Lake Shore Drive on Lake Michigan. 

If the housing market breaches the 144 support level, it can easily swoon to the next major support of 138. 

Similarly the condo market needs to stay above the 147 support, breaching which it can retest the 142-144 level. 

Is there a winner here? No, it's too close to call -- a tie for now!

Disclaimer - The author is not advocating the Case Shiller indices listed here. Consult your Financial Planner for an appropriate asset allocation model and/or trading strategies for different markets, including housing.

Thank you,

Sid Som, MBA, MIM
President, Homequant, Inc.

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