Chicago’s luxury housing market set a record for $1 million-plus sales in the third quarter.
The city tallied 424 luxury home sales in the third quarter, a 19 percent increase year over year, according to the Re/Max Luxury Report for the Chicago metro area.
The city accounted for more than half of the 790 luxury homes sold in the region in the third quarter. For the metro area as a whole, luxury sales rose 6.6 percent year over year, according to Re/Max.
Through the first nine months of the year, luxury sales in Chicago are up over 10 percent to 1,141 homes sold. For the seven-county metro area, luxury sales are up 4.4 percent to 2,198.
The luxury market has been bolstered by a strong economy and recent tax cuts that have wealthy buyers willing to spend. By the end of August, the Chicago area already recorded as many luxury sales as were seen in all of 2016 or 2017.
Jeff LaGrange of Re/Max the market also has been helped by a drop in the number of luxury homes on the market, from 2,291 two years ago to 1,744, “which is higher than we’d like but much more manageable.”
Demand in the city has also contributed to the rising numbers, particularly in submarkets like the Near North Side.
“In fact, every quarter this year has set a record,” he said.
The booming West Loop area is also setting luxury records, with 43 sales of attached units this year compared to 16 last year and none five years ago, according to the Re/Max report.
Suburban luxury sales continue to lag behind the city’s pace. Third quarter sales of $1 million-plus homes decreased by 5 percent to 366 units, according to Re/Max. Median sales price was down 1.2 percent to $1.28 million as a glut of inventory has caused some listings to languish.
Winnetka, however, did post strong numbers in the third quarter. The North Shore suburb recorded 51 luxury sales, a gain of 6 percent. Winnetka has recorded at least two $12 million home sales this year.