Chicago’s Market Is Staying Quiet, Unless Your Client Has $1.2 Million

by James F. McClister

If all roads lead to home recovery, then it’s pretty clear that not all American’s are taking the same path.

In 2013, heavy investor interest began driving up the number of homes sold throughout the country. Listings priced high to low were selling like hot cakes.

According to a report from Redfin, sales of the priciest homes – meaning properties in the top one percent – grew by more than 35 percent, while sales of the other 99 percent still made out with an increase of 10.1 percent.

This year, however, things have begun to slow down – at least for most of us. Redfin confirms that home sales in the bottom 99 percent since January have dipped by a national average of 7.6 percent. Though a select number of major metro areas have experienced slight increases in the bottom 99 percent of home sales, the majority of growth remains in the top one percent where sales are up 21.1 percent.

Chicago’s Market Is Clearly Split

Chicago was well on its way to recovery at the end of 2013 – home sales were up across the board. Properties falling in the city’s top percentile, which requires a price tag of $1,282,000, were up nearly 36 percent and the other 99 percent was following close behind with an impressive growth of 22.5 percent, according to Redfin.

Interest in the more attainable part of the market – the bottom 99 percent – has been on a steady decline since the year began. Sales are currently down 8.6 percent. The one silver lining for the area is that the city’s priciest properties – think the Gold Coast, Streeterville and Lincoln Park neighborhoods – are still finding buyers. As of April, sales were up 9.3 percent.

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