Last week, the sale of two homes for more than $5 million in the city of Chicago brings the number of luxury single-family homes, condominiums and co-ops sold this year to 12, surpassing last year’s numbers in during the same period.
A 4,800 square foot three-bedroom condo on the 61st floor of One Bennett Park in Streeterville has sold for $5.73 million and a 7,790 square foot six-bedroom single-family home at 2043 North Clifton Avenue has found a new owner for $5.45 million last week, according to Redfin.
The large yard, which is a rare find for single-family homes in the city, is in high demand and has been one of the biggest draws for the home buyer in the Lincoln Park neighborhood, said Emily Sachs Wong, l ‘@properties agent who listed the property.
“In a neighborhood full of homes 24 to 25 feet wide, anything wider than that is in high demand,” Wong said. “There’s little inventory of that, so we don’t have a lot of those homes in Lincoln Park.”
The first four months are the busiest for luxury homes, following a slow real estate market with holidays and winter school holidays in November and December. “We’re as busy as last year, if not busier,” Wong said.
The number of single-family homes, condos and co-ops in the city that sold for $4 million and more this year is three times higher than the same period in 2021. For all of 2021, 66 homes of city sold in the same category, according to the Multiple Listing Service. In the city and suburbs combined, more than 100 single-family homes and condos sold for more than $4 million in 2021, setting a record for the city’s luxury market, Chicago Crain previously reported.
As high demand, inflation and low interest rates drive up property prices, “property needs to be priced correctly for the market and market conditions,” said Janet Owen, a Berkshire Hathaway broker. Home Services Chicago. Home prices should not just reflect rising property taxes, but should be based on comparables of similar properties, she said.
“You’ll see properties that were priced right sell very quickly,” Owen said. “Properties that started too high will sell for less than if they had started correctly from the beginning.”
Rising interest rates and escalating violence in Ukraine, which could potentially affect the US market, are also risks listed by brokers that could impact the strong performing luxury market.
For now, the drop in Covid cases in Chicago since late January, the partial return of offices and low interest rates are encouraging signs for the city’s future buyers, who have turned to renting during the pandemic.
“People aren’t waiting to buy,” said Owen, who represented the seller of the six-bedroom, 8,400-square-foot Lincoln Park home in February, this year’s record for the neighborhood.
“They’re not afraid to make a big investment in Chicago. They are selling their little houses and upgrading them,” she said.