The number of million-dollar homes sold in Chicago spiked the first half of the year. According to Midwest Real Estate Data, 1,347 units sold for at least seven figures the first six months of the year in the Chicago metro area, which represented a sharp 13.4 percent increase from the first half of 2016.
Those results far outpaced the wider Chicago housing market. Overall, home sales increased by 3.9 percent for the first half of the year. All in all, it was a solid start to 2017.
“It looks to me like people are feeling better this year with the economy chugging along, and they’re willing to spend money on a nice house,” one Chicago agent told Crain’s Business Journal.
The extreme high-end of the Chicago housing market also saw an increase. Twenty-two homes sold for at least $4 million the first half of the year, which was up from 16 units in last year’s first half.
While luxury home sales have been brisk, the median price of these homes actually dipped slightly. According to Midwest Real Estate Data, the average sales price for the luxury market was $1.6 million. That was 3.3 percent lower than the first half of 2016.
Most observers attributed the slight dip to sellers “getting more realistic about what they can get.” One listing agent told Crain’s Business Journal a luxury home he sold for $5.1 million in April wound up going for 21 percent less than the seller’s original asking price.
The most expensive luxury home sold in Chicago so far this year went for $7.2 million. It was a contemporary home built behind a historical facade of a one-time bakery in Lincoln Park. The ultimate sales price was 22 percent less than the original asking price.
Notably, each of the past two years the highest-priced home sold in Chicago went for at least $10 million. Observers believe a growing supply of high-end homes for sale has helped reign in price increases.