Although home sales in general have been on the rise for 15 months in the row (according to the Wall Street Journal), the Chicago luxury market remains in a class by itself. Luxury real estate in Chicago is stable, more than likely because obtaining a loan is more difficult for homes that will have a mortgage payment in the $1,000 to $5,000 range.
With lower inventory and increasing demand due to great mortgage rates, buyers need to be in a good position to get a great deal on luxury Chicago real estate–a sizable down payment and a top-notch FICO score. Of course, cash is king–but if you aren’t paying cash for a home, you could be competing with a buyer who is, and should have everything in line financially to get yourself a great deal.
The lag time in home sales is shorter than we’ve seen in awhile as well–this is the number of months it would take to take all of the homes listed for sale, given the current pace of sales. Right now that number is hovering right around 5.9 months, compared to the near 12 months of supply we saw just two years ago or the 9 months of supply at this time in 2011.
But, with building permits and new construction picking up, there are signs that demand is being answered and there continue to be great opportunities for buyers to purchase a home they love at a great price.
What’s Selling in this Chicago Luxury Market
It’s interesting to see many of the Chicago homes sold in the luxury category result in a great deal for the buyer. Newer, pristine properties in great locations are selling quickly, but buyers are still able to negotiate to their advantage–especially now, when sellers are eager to get their homes off the market before winter really hits.
In September, 20 single-family home sold in the luxury category, with the majority of them selling for under $2 million. Only 6 of those 20 were over the $2-million mark, the most expensive being at 1538 Dearborn with a final price tag of $3.55 million.
Chicago condos in the luxury category saw about the same ratio–of 28 luxury units sold, 20 were under $2 million. The most expensive was at The Elysian at 11 E. Walton in the Gold Coast, which sold for $4.3 million.
Whether you’re ready to make a purchase or just curious about what’s on the market for a buyer like yourself, give me a call. I’d be happy to take a look at what’s available and what might be the best options for you. Contact me at (312) 498-5080 or email me at [email protected]