More luxury homes stall on Chicago market
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A single-family home in West Town. Photo courtesy of Damone Richardson
Chicago's luxury, high-end homes aren't being snapped up quickly like they have been in recent years.
The big picture: Amid high interest rates and limited housing stock, high-end home sales dropped in the Chicago metro area by nearly 50% last year, compared to 2022, Crain's reports.
- And buyers are being picky about what current home prices are worth, Chicago real estate agent Damone Richardson tells Axios.
What they're saying: "A million-dollar buyer is a discerning individual," Richardson says. "So they don't want eccentricity in the houses. If there's a little corner they don't like, they're out."
Zoom out: In recent years, West Town and Ukrainian Village have been hot spots for million-dollar buyers.
- The neighborhoods once featured old brick walkups as far as the eye could see, but many of those have been torn down to make way for sleek, stylish single-family homes.
Yes, but: "There is a lack of inventory in Ukrainian Village and West Town," says Richardson. "Sales are down because inventory's down, yet prices are still going up."
- Richardson says owners may be staying put due to factors like inflation and economic uncertainty, or being locked into low interest rates.
Zoom in: One particular property in Chicago's West Town on Huron Street is listed just under $1.5 million.
- It's a contemporary single-family home, featuring five bedrooms and 3.5 baths, all the amenities and a rooftop deck that is bigger than most city apartments.
Between the lines: You'd think buyers aren't biting because of high interest rates, but Richardson points out that many of the buyers at this price range pay with cash, forgoing mortgages and bank loans.
- He says buyers' expectations of what a luxury home should be may also contribute to this problem.
- "As the prices have gone up, a million bucks just ain't what it used to be."
What's next: Hope springs eternal. Chicago's housing market is showing signs of picking back up.
