Chicago luxury home sales see major jump

by Alison McAvoy

In the first half of 2017, sales of high-end homes increased substantially while sales of homes $500,000 to $1 million dipped.

According to John Irwin Chicago Real Estate, in 2017 there’s been a 26 percent increase in sales for luxury homes priced over $1 million in the city of Chicago. Sales for homes priced between $500,000 and $1 million have fallen 16.3 percent this year, and sales of homes priced at $500,000 and less have decreased by 5.1 percent.

According to Crain’s Chicago Business, 1,347 homes sold for $1 million or higher in the first six months of the year. Twenty-two of those homes were priced at $4 million or more, with the average high-end sale price estimating to about $1.6 million.

Falling foreclosure rates

Medium-priced homes are also staying foreclosed longer than high-end homes, with owners hesitating to put them on the market until prices improve. In September 2017, inventory of homes within this price point rose 7.6 percent, adversely affecting sales and adding to their shelf-lives on the market. Even so, inventory levels of luxury homes have seen a similar uptick by 7.1 percent. On the Near North Side, the inventory of homes priced over $1 million saw a spike of 33 percent.

The inventory of less-expensive homes priced at $500,000 or less dropped by 2.7 percent from last year.

However, luxury homes are staying on the market for less time, falling from 167 days in the second quarter of 2017 to 152 days as of September. Conversely, the market time for homes priced between $500,000 and $1 million has increased significantly from last year by 22.6 percent, now spending an average of 65 days on the market. Homes costing $500,000 or less are spending an average of 48 days on the market, a 15.8 percent decrease from last year.