RE/MAX Luxury Report on Metro Chicago Real Estate: Market for $1 Million-Plus Homes Delivered Robust Results over First Nine Months of 2014

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Home sales in the $1 million-plus segment of the metropolitan Chicago real estate market have continued to show upward momentum through the first nine months of 2014.

Home sales in the $1 million-plus segment of the metropolitan Chicago real estate market have continued to show upward momentum through the first nine months of 2014, and sales activity was especially strong in the third quarter, according to the RE/MAX Luxury Report on Metro Chicago Real Estate, which provides regular analysis of home sales at $1 million plus.

For the January-September period, luxury sales in the seven-county metro Chicago market area were up 8 percent to 1,675 units, and the median sales price was $1,350,000, up 3 percent compared to the same period in 2013. During the third quarter alone, sales of luxury homes totaled 736 units, a 13 percent increase over the same quarter of last year. The median sales price for luxury properties rose 3 percent to $1,340,000.

The average time on the market for luxury properties sold during the first nine months of this year in the seven-county Chicago metropolitan area was 130 days. That compares to an average of 166 days last year. Average market time during the July-September quarter was 123 days, down from 132 days in 2013.

City Sales

Luxury sales in the City of Chicago were up 13 percent to 763 units through the first nine months of 2014, while the median sales price for the period was $1,400,000, up 2 percent. During the third quarter, city sales of $1 million or more totaled 320 units, up from 270 a year earlier. That translates to a 19 percent gain. The median sales price for the third quarter was $1,425,000, up 6 percent from the same quarter of 2013.

There were 369 sales of attached homes (condominiums, townhouses and co-ops) in Chicago priced at or above $1 million during the January-September period this year. That is 23 percent more than the comparable period of 2013. The median sales price was $1,376,000, and the average market time was 129 days.

Attached sales increased 22 percent in the third quarter to 140 units, and the median sales price came in at $1,356,562, compared to $1,390,000 a year earlier. Average market time for the quarter rose to 124 days from 95 days last year.

Sales activity in the first nine months of 2014 increased in each of the three neighborhoods that dominate the luxury-attached market. The Loop saw sales rise to 51 units from 44 the prior year. In Lincoln Park, sales rose to 60 units from 33, and the Near North Side had 219 sales, up from 199. The median sales price was $1.25 million in Lincoln Park and $1.4 million in both the Loop and Near North Side.

Third quarter attached sales activity was unchanged in the Loop at 16 units but rose in Lincoln Park to 21 units and in the Near North Side to 83 units. The median sales price in the Loop climbed to $1,535,500 and in Lincoln Park to $1,305,000. The Near North Side saw a modest decline to $1,365,000.

Sales of single-family (detached) homes in Chicago totaled 394 units from January through September, compared to 372 units a year earlier. The median home sales price of $1,427,500 was up 6 percent from last year. Third quarter sales rose 16 percent to 180 units, and the median sales price climbed to $1,463,250, up 9 percent. Average market time in the third quarter was 77 days, down from 83 days a year earlier.

Six community areas in Chicago accounted for 88 percent of all luxury detached sales in the nine-month period. They are Lake View, Lincoln Park, Logan Square, Near North Side, North Center and West Town, but despite their proximity, the market dynamics varied. Sales activity has been constrained for much of the year in several areas by a shortage of listings, leading to strong competition for luxury properties. As a result, the average market time for the first nine months of this year was only 48 days in North Center and West Town and 56 days in Lake View. In contrast, the average market time was 103 days in Lincoln Park, reflecting a better balance between supply and demand.

Suburban Sales

Luxury sales across Chicago’s suburbs totaled 913 units for the January-September period, up 3 percent from last year. The median sales price also gained 3 percent to $1,300,000, and average market time shortened by 16 percent to 150 days.

The most active suburban luxury market for the first nine months of 2014 was Winnetka, where 121 homes sold for at least $1 million, 15 percent more than in the same period last year. The median sales price was $1,440,000. Among the other most active markets, Wilmette was the second busiest, with 94 sales and a median price of $1,307,500. Hinsdale had 93 sales and a median price of $1,505,000.

Other top suburban luxury markets in terms of closed sales were Lake Forest with 73 at a median of $1,350,000, Glenview with 58 sales at a median of $1,184,000, Glencoe with 51 sales at a median of $1,475,000, the Barrington area with 35 sales at a median of $1,370,000, Highland Park with 29 sales at a median of $1,210,000 and Naperville with 28 sales at a median of $1,188,500.

RE/MAX has been the leader in the northern Illinois real estate market since 1989. The RE/MAX Northern Illinois network, with headquarters in Elgin, Ill., consists of 2,000 sales associates and 100 individually owned and operated RE/MAX offices that provide a full range of residential and commercial brokerage services. Its mobile real estate app and http://www.illinoisproperty.com provide comprehensive information about residential and commercial property for sale in the region. The northern Illinois network is part of RE/MAX, LLC, a global real estate organization with 90,000+ sales associates in 90+ nations.

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Laura Ortoleva
RE/MAX Northern Illinois
+1 (847) 428-4200 Ext: 224
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