Chicago home sales were down 9.3% in the third quarter, but ultra luxury sales soared to their highest level since first quarter 2008!* There were 26 sales of homes priced $3,000,000 or higher.
As shown below, quarterly ultra luxury home sales typically fall in the range of 6 to 16. The average for the past 8 years was 13 sales. Sales in the past quarter were double that. They were also double sales a year ago.
The 26 ultra luxury sales were evenly split between condos and houses. The most expensive condo sale was unit 21A at the Palmolive for $5.25M. It’s a 4,732 square foot apartment with exceptional finishes and unobstructed lake views. The most expensive house sale was 1518 N Astor for $7.4M. At 7,884 square feet it isn’t quite big enough to be called a mansion, but with 4 levels, a double lot, 7 bedrooms, 5 1/2 bathrooms and large rooftop deck few families would find it too small.
The last time Chicago ultra luxury sales were this high was in the first quarter of 2008 when there were 29 such sales. Nineteen of the sales were for condos. Many were for new developments such as the Residences at 900, the Palmolive, Millennium Centre and 50 E Chestnut. That quarter the 3 highest condo sales were all at the Palmolive for $5,516,000 to $5,875,000. The most expensive house sale was also on Astor Street at 1451 N Astor. The 7,000 SF vintage Howard Van Doren Shaw home sold for $5.25M.
With the exception of 2 sales all ultra luxury home sales last quarter were in the Near North Side or Lincoln Park. Most of the sales in the Near North Side were in the Gold Coast. The rest were in River North. One sale was on East Lake Shore Drive which is considered the Gold Coast by some and Streeterville by others.
The inventory of ultra luxury homes for sale in Chicago in the third quarter was up 4.7% There were 157 such homes for sale in Chicago. Pending sales were up 27.8%, so sales should do well this quarter.
Ultra luxury sales have been up so far in 2014. In June I wrote about ultra luxury home sales in the first quarter which were more than double a year earlier. For the first 3 quarters this year sales are up 22.6%.
There was one distressed (short sale & foreclosure) ultra luxury home sale in the third quarter. Two distressed sales were on market.
The average sale price as a percent of original sale price for ultra luxury listings with no price changes was 92.1% down from 96.2%. For listings with one or more price changes the average sale price as a percent of original sale price was 90.6% up from 86.9%.
WHAT THIS MEANS FOR CHICAGO ULTRA LUXURY HOME BUYERS
With surging sales it’s no longer a buyers market. Buyers in this price range typically pay cash. So get a proof of funds letter from your accountant or banker ready to go. If you will be financing your purchase, get your mortgage pre-approval before you start touring homes. Contact us for recommended jumbo mortgage consultants and to get started.
WHAT THIS MEANS FOR CHICAGO ULTRA LUXURY HOME SELLERS
If your home is priced right when it goes on market, it should sell in less than 4 months. The average days on market was down 29% to 111 days. With the slight rise in inventory I would be careful about pricing your home above market. If the buyers finance their purchase, your home will need 2 appraisals for at least sale price for financing to be approved. The appraised value is primarily determined by recent comparable sales. If you’re considering selling your home, get our free home valuation.
CHICAGO ULTRA LUXURY HOMES FOR SALE
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*Information is based on data from Midwest Real Estate Data (MRED).