Luxury home sales in Chicago increased by 12% in the second quarter, but a large inventory continues to put pressure on the market.
Last quarter, 832 properties sold for at least $1 million in the Chicago metropolitan area, compared with 741 units in the same period last year, according to a new market report by RE/MAX Northern Illinois. Through the first half of 2016, luxury sales totaled 1,179 units, up 5% year-over-year.
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But, as the number of transactions edged up, the median sales price of luxury residences fell 3%, from $1.35 million in the second quarter of 2015 to $1.309 million in the same period this year.
RE/MAX attributed the decline in prices to a large supply of available properties, especially in the suburbs.
“There were 3,104 luxury homes on the market at the end of June, about a 15-month supply based on the pace of sales over the first half of this year,” said Jack Kreider, executive vice president and regional director of RE/MAX Northern Illinois.
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Properties are also staying on the market longer than they did a year ago: an average of 164 days, versus 132 days in the second quarter of 2015.
Leading sales in the metro area was the City of Chicago, which accounted for 48% of luxury sales during the quarter. A total of 398 units were sold, representing an 18% increase from a year ago. For the first six months of the year, sales reached 580 units, up 6% from 2015.