2nd Quarter Sales Volume Up for $1 Million-Plus Homes, but So Was Unsold Inventory and Market Time

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,

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….

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