Luxury Home And Condo Prices Are Rising In Posh Neighborhoods

Despite the recent surge in mortgage interest rates to above 4 percent, the luxury home and condominium market in Chicago’s posh lakefront neighborhoods should see “moderate growth in 2017” as the economy continues to recover after the Presidential election.

That’s the outlook from veteran Realtor Louise Study of Baird & Warner’s Gold Coast office, who conducts the annual Study Study of Residential Real Estate.

The sales analysis surveys the market for upscale single-family homes and condos sold for more than $500,000 in Chicago’s most ritzy neighborhoods—the Gold Coast, Streeterville, River North, Lincoln Park and Lakeview, along with expensive properties in 15 other neighborhoods.

Twenty-eight luxury single-family homes were sold in the Gold Coast, Streeterville and River North in 2016. The median luxury-home price in 2016 rose to $2.125 million from $2.06 million in 2015, when 27 sales were completed. Home prices in 2016 ranged from $925,000 to $3,537,500.

Last year 971 upscale condos, co-operative apartments and townhomes in Gold Coast, Streeterville and River North were sold for a median price of $735,000, a solid increase from a median price of $725,795 on 991 transactions in 2015. Condo prices ranged from $500,000 to $11.7 million in 2016.

With the U.S. stock market surging to a new record high after the election of President Donald Trump, more wealthy home and condo buyers likely will be in the market in 2017, analysts say.

Published since 1984, the Study Study is compiled from Multiple Listing Service statistics on sales of $500,000-plus residential units in 20 target neighborhoods.

In late-February, benchmark 30-year fixed mortgage rates averaged 4.16 percent nationwide. A year ago at this time, the 30-year loan rates averaged 3.62 percent.

Despite a rate increase of about a half of 1 percentage point, “interest rates still are historically low,” noted Study.

“Rental prices are rising. Luxury home and condo inventory has steadily fallen. Inflation is moderate.”

In her 2017 market outlook, Study pointed to a recent National Association of Realtors (NAR) economics report that said: “There is an overwhelmingly strong desire among the younger generation to own a home. Gains could come from Millennials getting ready to buy a home, increased household formation, and an improving job market.”

Chicago’s other top upscale neighborhoods generally posted strong price appreciation and slightly lower transaction results in 2016 in most housing sectors. Survey results of the 32nd annual Study Study follow:

• Lincoln Park & Old Town. A total of 191 luxury single-family homes were sold in 2016 at a median price of $1.575 million, down slightly from $1.6 million on 197 transactions in 2015. Home prices ranged from $530,000 to $8.35 million last year.

Some 548 upscale condo, co-op or townhome sales were posted at a median price of $680,000, up from $667,000 on 545 deals in 2015. Prices of condos surveyed ranged from $500,000 to $3.950 million.

• Lakeview. A total of 152 luxury single-family homes were sold in Lakeview in 2016 at a median price of $1.280 million, down slightly from $1.345 million on 159 deals in 2015. Home prices surveyed ranged from $500,000 to $3.8 million in 2016.

Some 520 upscale condos, co-ops or townhomes sold in Lakeview in 2016 at a median price of $625,000, up from $605,000 on 447 transactions in 2015.

• South Loop. Only two luxury homes were sold in 2016 with a median price of $1,751,250. The price tags were $820,000 and $1,862,500 million. In 2015, two luxury homes also were sold in the South Loop and the median price was $1.55 million.

Some 401 upscale condo, co-op and townhome sales were posted in 2016 with a median price of $697,000, up from $640,000 on 203 transactions in 2015. Prices surveyed units ranged from $500,000 to $6.2 million in 2016.

• West Loop. Ten luxury homes were sold in 2016 with a median price of $797,500. Eight homes were sold in 2015 with a median value of $917,150. In 2016, home prices ranged from $557,000 to $1.525 million. The median sale price was $644,000 on 213 upscale condo, co-op or townhome transactions in 2016. A total of 230 units were sold with a median value of $659,950 in 2015.

• Bucktown & Wicker Park. The median luxury home price was $850,000 on 375 transactions in 2016. Home prices ranged from $500,000 to $3.8 million. A total of 394 homes were sold with a median value of $849,000 in 2015.

Some 521 upscale condo, co-op and townhome sales were recorded in 2016 with a median price of $575,000. Prices ranged from $500,000 to $1.5 million. Some 506 units were sold with a median price of $584,500 in 2015.

• Roscoe Village & North Center. Ninety-five luxury homes were sold with a median sale price of $1.13 million in 2016. Home prices ranged from $524,000 to $2.895 million. In 2015, there were 206 home sales with a median price of $1.088 million.

A total of 105 upscale condo, co-op and townhome sales were recorded in 2016 with a median price of $591,000. Prices on surveyed units ranged from $500,000 to $1.1 million. A total of 82 unit sales occurred in 2015 with a median value of $579,900.

• Andersonville & Lakewood Balmoral. Seventy-nine luxury home transactions were recorded in 2016 with a median price of $851,000 in the Andersonville and Lakewood Balmoral neighborhoods. Prices of surveyed homes ranged from $500,000 to $1.8 million. Forty-nine homes were sold for a median price of $720,000 in 2015.

Twenty-two upscale condo, co-op or townhome sales were recorded at a median price of $578,500 in 2016. Prices ranged from $503,000 to $635,000. Sixteen units were sold in 2015 with a median price of $550,000.

• Logan Square & Ravenswood. There were 141 luxury home transactions posted in 2016 with a median price of $757,500 in Logan Square, Ravenswood, Ravenswood Manor, Ravenswood Gardens. Prices of surveyed homes ranged from $500,000 to $2.135 million.

In 2015, there were 201 home sales at a median price of $630,000 in Logan Square-Ravenswood.

Sixty-seven upscale condo, co-op and townhomes were sold in Logan Square, Ravenswood, Ravenswood Manor, Ravenswood Gardens for a median price of $569,000. Prices of units surveyed ranged from $500,000 to $840,000. Twenty-three units were sold in these areas in 2015 with a median value of $541,366.

• Kenwood & Hyde Park. Forty-two luxury home transactions were posted in 2016 in former President Barak Obama’s neighborhood with a median price of $877,500. Home prices ranged from $520,000 to $2.25 million. In 2015, the median value was $854,000 on 47 sales.

Nineteen upscale condo, co-op and townhomes were sold in 2016 for a median price of $575,000. Prices of surveyed units ranged from $500,000 to $885,000. In 2015, the median value was $623,000 on 10 unit sales.

For more housing news, visit www.dondebat.biz. Don DeBat is co-author of “Escaping Condo Jail,” the ultimate survival guide for condominium living. Visit www.escapingcondojail.com.