Elgin, IL, August 02, 2017 --(PR.com
)-- Sales of luxury homes increased in the metropolitan Chicago area during the second quarter of 2017 as the suburban luxury market showed signs of improvement, while the city market appeared to soften somewhat, according to the RE/MAX Luxury Report on Metro Chicago Real Estate. After rising 31 percent in the first quarter compared to the same period in 2016, second quarter sales rose 8 percent to 899 units, and the median sales price was essentially unchanged at $1,300,000.
The inventory of homes priced at $1 million or more was 2.2 percent higher at the end of June than it had been a year earlier, and during the second quarter, luxury homes sold averaged 167 days on the market, up from 164 days a year earlier.
“The good news is that luxury sales for the quarter were the highest we’ve seen since we began tracking that data in 2011, and the suburban luxury market showed continued signs of improvement after a slow year in 2016,” said Jack Kreider, executive vice president and regional director of RE/MAX Northern Illinois. “What concerns us is that the growth in the inventory of unsold luxury properties in Chicago has risen significantly this year. However, it is encouraging to see that luxury sales in the city did register a modest quarterly gain.”
The RE/MAX Luxury Report is a quarterly analysis of $1 million-plus home sales in Cook, DuPage, Kane, Kendall, Lake, McHenry and Will counties from data compiled by Midwest Real Estate Data (MRED).
City of Chicago Luxury Sales
Sales of luxury homes in Chicago rose 7 percent in the quarter to 496 units. The median sales price was $1,342,500, a decline of 2.2 percent. The luxury inventory in the city expanded by 26.3 percent to 1,132 units. Average market time was 142 days for homes sold during the quarter, up from 126 days a year earlier.
The inventory of unsold luxury properties in Chicago at the end of June was nearly twice what it was three years earlier.
The growth in inventory occurred primarily among attached units, which include condominiums, cooperatives and townhouses. The attached luxury inventory rose 44.7 percent from its year-earlier level to 605 units. At the same time, attached sales for the quarter gained 9 percent to 181 units, and the median sales price inched up 0.1 percent to $1,326,400. The quarter’s average market time rose from 92 days last year to 120 days in 2017.
Luxury attached sales were especially strong in the Loop, where they rose 33.3 percent to 20 units, and in Lincoln Park, where the increase was 17.9 percent to 33 units.
For luxury detached homes in Chicago, inventory increased a more restrained 10.3 percent, while sales were up 5.6 percent to 245 units. The median sales price dipped by 2.3 percent to $1,350,000, and average market time increased by 9 days to 159 days.
For the second consecutive quarter, North Center topped all city neighborhoods in luxury sales with 68, a gain of 41.7 percent, while traditional luxury leader Lincoln Park recorded 64 sales, unchanged from last year. The two other leading neighborhoods for luxury sales were Lake View with 40 and West Town with 30.
Suburban Luxury Sales
Across the Chicago suburbs, luxury sales increased 9 percent for the quarter to 473 units, and the median sales price gained 1.2 percent to $1,275,000, while average market time fell to 189 days from 198 days a year earlier. The inventory of 2,041 luxury units was 7.6 percent lower than a year ago.
Among the suburban communities where luxury homes are most common, the sales picture was mixed. Winnetka and Hinsdale continued their battle for leadership in the luxury market, with Hinsdale coming out on top for the quarter with 51 sales compared to 50 in Winnetka.
Elmhurst recorded the strongest sales increase, with 18 luxury sales compared to eight a year earlier. Other luxury markets showing improved sales were Lake Forest, Glenview, the Barrington area, Evanston and Highland Park. Lake Forest also enjoyed the sharpest increase in its median sales price, which rose 15.2 percent to $1,620.000.
Communities seeing fewer luxury sales in the quarter were Wilmette, Glencoe, Northbrook and Naperville.
RE/MAX agents consistently rank among the most productive in the industry. In 2016, RE/MAX Northern Illinois agents averaged 18 transaction sides. RE/MAX has been the leader in the northern Illinois real estate market since 1989 and is continually growing. The RE/MAX Northern Illinois network, with headquarters in Elgin, Ill., consists of more than 2,250 sales associates and 105 independently owned and operated RE/MAX offices that provide a full range of residential and commercial brokerage services. Its mobile real estate app, available for download at www.illinoisproperty.com, provides comprehensive information about residential and commercial property for sale in the region. The northern Illinois network is part of RE/MAX, a global real estate organization with 110,000+ sales associates in 100+ nations.