As we reported earlier this year, sales of luxury homes in Chicago (homes priced over $1 million) outpaced the overall market in 2013. This trend appears to be continuing, according to sales data from the first quarter of 2014. While Chicago home sales were down 5% overall in the first quarter compared to the first quarter of 2013, sales of luxury homes were up 28% in the same time period. Neither snow nor subzero temperatures, it seems, could deter luxury buyers, especially in these neighborhoods:
-Near North (64 sales in Q1 2014, up 14% over 1Q 2013)
-Lincoln Park (42 sales, up 50%)
-The Loop (19 sales, up 90%)
The luxury real estate in Chicago market is gaining steam, approaching and in some cases surpassing the pre-recession levels of 2007. Sales of luxury homes in Lincoln Park, for example, were 16% higher in 2013 than they were in 2007. In Lake View and West Town, they were 30% higher. The Near North and Loop areas, on the other hand, are still down 8% and 15% from their 2007 levels.
Below is a list of the Chicago neighborhoods (as defined by the Multiple Listing Service) with the largest concentration of luxury sales in 2013:
1. Near North (298 sales)
2. Lincoln Park (210 sales)
3. Lake View (98 sales)
4. North Center (96 sales)
5. Loop (69 sales)
In 2007, the list was similar, but the Loop area had stronger sales than it did in 2013, beating out Lake View and North Center for the third spot.
1. Near North (326 sales)
2. Lincoln Park (180 sales)
3. Loop (82 sales)
4. Lake View (75 sales)
5. North Center (71 sales)
As luxury sales rise in these neighborhoods rise, so does new construction. Luxury buyers purchase new homes at a much greater rate than the average buyer. In the first quarter of 2014, for instance, 16% of all luxury sales were for new construction. By contrast, during the same time period, less than 1% of the overall Chicago market was new construction.
We are representing a number of luxury properties right now, including:
1747 N Winchester, $1,749,000
3625 N Wilton, $1,150,000
1646 W Winona, $1,149,900
1336 W Melrose, $1,050,000
We would be happy to discuss your home selling needs today and can be reached at email@example.com or 773.537.1308.