Sue Fox, @Properties. Direct 773.816.1788
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Got a million dollars? If the recent sales figures are any indication, more wealthy home buyers are sinking their cash into Chicago real estate, driving up sales of condos and houses priced at $1 million or more. Sales of such properties jumped 31% in 2010, according to a recent story in Crain’s Chicago Business.
Such transactions are relatively rare: There were only 480 Chicago home sales for $1 million or higher in 2009, and 630 last year. These pricey properties, which are typically found in choice neighborhoods such as Lakeview, Lincoln Park, Old Town, Gold Coast, and Streeterville, tend to move slowly, sometimes taking a year or more to attract a buyer. In a sluggish market like ours, this means the backlog of unsold luxury homes could easily amount to an 18-month supply — more than twice the inventory we’d see in a healthy market.
The downtown Chicago condo market helped drive the increase in high-end sales, according to Crain’s. Luxury condo sales soared nearly 50% , to 364 units in 2010. Closings at new high-rises — like the Gold Coast’s Elysian Hotel & Private Residences, 11 E. Walton St., and Walton on the Park, 2 W. Delaware Place — contributed to the increase.
If you’re in the market for a high-end property, now may be the ideal time to buy. The median price of Chicago’s luxury single-family houses slid 12% to about $1.3 million last year, compared to $1.5 million in 2009. The median price for high-end condos actually rose a bit, but it was skewed by sales at top-shelf projects such as the Elysian. In general, Chicago condos with million-dollar price tags can now also be found in (the swankiest corners of) the bargain bin.
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