Is Chicagoland’s Luxury Housing Market Falling Behind?

by Peter Thomas Ricci

Could Chicago’s strong luxury housing market be slowing down?


Sales prices for Chicagoland’s luxury housing market slipped behind the general marketplace this year, according to a new Redfin analysis of the nation’s luxury markets.

Redfin’s study analyzed the top 5 percent of listings, and according to its research, the average sale price for Chicagoland’s luxury market in 2015’s first quarter was $1.491 million, a 3.9 percent decline from 2014’s first quarter. By comparison, the remaining 95 percent of listings in Chicagoland saw their average sales price jump 11.8 percent to $265,000.

Despite that reduction in price, additional numbers from Redfin’s analysis offer a more positive portrait of Chicagoland’s luxury market. For the top 5 percent of Chicagoland listings, the average days on market in 2015’s first quarter was 61, one day less than the 62 days for the remaining 95 percent of listings; given that fact, the reduction in average sales price was likely due to less sales in the ultra-high priced market.

Luxury Real Estate in Chicagoland

One other interesting characteristic of Chicagoland’s luxury housing market is how much more expensive those upper-tier listings are than the remainder of the market.

According to Redfin, listings in the top 5 percent are 5.6 times pricier, which is among the largest disparities in the country – though admittedly, it’s far beyond the 11.6 of Miami Beach.

This graph shows the luxury sales price ratio for the nation’s largest metro areas:


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