The first quarter typically sees about one third of a year's sales, according to Appraisal Research Counselors. The closest first-quarter total was 1,673 units in 2000, when 5,625 contracts were signed before the year was over.

One factor pushing sales may be that Chicago's condominium market appears to be a bargain compared to markets such as South Florida and California, the report suggests. Trying to meet the demand, which increasingly is coming from suburbanites, are converters who may switch more units from rental to condominiums than any year since the days of "Condomania" in 1970s.

The outlook is not entirely rosy. "While 2005 is starting out with record-breaking sales in the quarter, challenges still remain," says Appraisal Research Counselors. "In particular, the continued evidence of speculators remains our primary concern, due to their potential to inflate true demand in the market." Other factors, the firm's report notes, include higher construction costs, lackluster job growth and rising interest rates.