Sue Fox, @Properties. Direct 773.816.1788

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Luxury home sales dive in Chicago

filed under: Buyers, Chicago home prices, Chicago home sales, North Center posted on January 18th, 2012

MILLION-DOLLAR HOUSE: This new

MILLION-DOLLAR HOUSE: This nearly new4-bedroom house, located in North Center in the Coonley school district, sold in November after less than a month on the market. The sale price was exactly $1,000,000, though the home was listed for $100,000 more.

The highest end of Chicago’s housing market took a beating in 2011, with sales of homes for $1 million or more falling 14.4% over the prior year. Only 539 such properties sold in 2011, compared with 630 homes in 2010.

Luxury condo sales were particularly hard hit,  according to a recent story in Crain’s Chicago Business. Sales of million-dollar condos plunged 29% to 259 units, compared with 364 in 2010. The decline was partly attributed to the fact that no major new luxury condo developments were completed last year.

But the uncertain economy and troubled real estate market also certainly played a role. Many people are holding off on big-ticket purchases, and million-dollar homes are taking longer to sell. There’s a year-and-a-half supply of luxury homes sitting unsold throughout the Chicago area, Crain’s reported.

On the ground, I’m seeing some of these single-family homes endure multiple price reductions, occasionally to the point that their original asking price is sliced nearly in half. Often homes priced slightly above $1 million will sell for closer to $850,000 or $900,000. On the other hand, new or recently-built homes in hot school districts tend to sell quickly, with less of a discount off the asking price.

Written by Sue Fox //

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