Metro Chicago's $1-Million-Plus Home Market Set Sales Volume Mark in 2nd Quarter, While Prices Were Little Changed, According to RE/MAX Luxury Report

CHICAGO, July 25, 2018 /PRNewswire/ -- Luxury home sales activity in the seven-county Chicago area increased modestly during the second quarter, while prices showed little upward momentum, according to the quarterly RE/MAX Luxury Report on Metro Chicago Real Estate. Home purchases of $1 million or more climbed to 916 units, up +1.9% from the same period last year. For the full first half of this year, the increase was +3.2% to 1,408 units. Both those transaction totals were the highest for their respective periods since RE/MAX began tracking luxury home sales in 2011.

The second-quarter median sales price in the luxury bracket was unchanged at $1.3 million, and average market time, which is the number of days from the date a property is listed until it goes under contract, dipped to 149 days from 167 days a year ago.

"The luxury market isn't booming, but it is certainly doing well in terms of sales volume, and it is working through some of the excess inventory that accumulated over the 18 months prior to 2018," observed Jeff LaGrange, Vice President of the RE/MAX Northern Illinois Region. "The luxury inventory was -3.6% lower on June 30 than it was a year earlier. The exception to that trend was among luxury attached homes, primarily condominium units, in Chicago, where inventory increased +7.3% thanks to a steady supply of new construction. The detached-home inventory declined -11.8% in Chicago and -4.8% in the suburbs. Nonetheless, there remains an ample inventory of luxury homes, and that has helped restrain prices, a situation likely to continue through at least the second half of this year."

City of Chicago Luxury Sales

The city luxury market had an active second quarter, with 457 homes changing hands, +7.3% more than during the same quarter last year. First-half sales gained +5.9%. The median sales price for the second quarter was $1,311,500, -2.3% less than last year's comparable figure. Average market time shortened to 127 days from 142 a year ago.

The second-quarter increase in units sold is attributable to a surge in attached-home sales, which rose +18.8% to 215 units. The median sales price for luxury attached homes slipped -2.4% to $1.29 million. The biggest gains in attached sales occurred in two emerging areas that have seen a good deal of new high-rise construction.  Sales in the Near West Side totaled 23 units, a gain of +228.6%, while 15 luxury sales in the Near South Side represented a gain of +114.3%. Also showing sales strength was the Near North Side, the traditional leader in luxury attached sales, where 125 units were sold, an increase of +30.2%. However, other key areas saw fewer transactions for the quarter than in 2017. Sales dipped -20% in the Loop, -27.3% in Lincoln Park and -41.7% in Lake View.

Sales of detached homes totaled 242 units in the second quarter, down -1.2% from the year-earlier period, while the median sales price for the first half of the year slipped -0.4% to $1.34 million.  Average market time shortened by 26 days to 133 days.

Lincoln Park, Lake View and North Center again had the largest numbers of detached luxury sales, but only Lake View posted a sales increase, gaining +2.5% on 41 sales in the second quarter. Lincoln Park's 55 sales were a -14.1% decline, while North Center recorded 39 sales, down -42.6%. On the other hand, detached sales increased in most other city communities where they are common, led by Logan Square, where luxury sales soared +255.6% to 32 units. Luxury sales also increased +8.3% in Lincoln Square, +100% in Near North Side and +66.7% in Edgewater, while sales were unchanged in West Town and down -50% in Uptown.

Suburban Luxury Sales

Suburban luxury sales fell -3% in the second quarter but managed a +0.3% gain for the January-June period. The median sales price for the second quarter gained +0.4% to $1.28 million, and average market time shortened by 17 days to 172 days.

As it did in the first quarter, Hinsdale led all suburbs in luxury activity in the April-June period with 54 sales, while Winnetka, with 52 sales, was again in second place. In both cases, sales were higher than during the same period last year: +5.9% in Hinsdale and +4% in Winnetka. The biggest increases in luxury suburban sales were +90% in Naperville to 19 units, +41.7% in Wilmette to 51 units and +33.3% in Elmhurst to 24 units. The two luxury markets with the softest second-quarter results were Highland Park, down -52.4% to 10 units and Glenview, down -30.3% to 23 units.   

Contact: James Nathan, [email protected], 1-773-588-0777

SOURCE RE/MAX Northern Illinois