Sales are slowing in Chicago's high-end market, where three bedrooms or more reign supreme.
The expansive view from 189 E. Lake Shore Dr.
The numbers from online real estate database Zillow say it all: Chicago’s lower-than-average rising 2016 home value projections (2.3 percent as opposed to 5 percent or more in most markets) and falling home value growth in luxury zip codes (down 1.8 percent in the second half of 2015) are making it tough at the top. According to Baird & Warner statistics, there were 713 homes over $2 million on the market in March, up 20 percent from the same time last year, when 596 were listed. Brokers Julie Busby of Belgravia Realty Group (312-890-4818) and Julie Harron of Baird & Warner (312-953-6408) tell us what the surfeit means for today’s buyer.
Are luxury sales slowing down? Julie Busby: It depends on the property. Three-bedrooms are selling virtually the minute they come on the market. Julie Harron: High-luxury rental prices are rising faster than incomes, which is driving Gen Xers to buy larger homes and bringing prosperous Millennials into the market.
Who’s buying luxury now, and what do they want? JH: Boomers who want more carefree properties and Gen Xers who want bigger homes and have been dependent on Baby Boomers to sell. JB: But Boomers who are downsizing still want spacious homes, and Gen Xers and Millennials are looking for value and amenities.
Belgravia’s new development, CA Washington features modern finishes and private elevator access to each unit.
What kind of properties work for these needs? JB: Belgravia has pioneered a series of three-bed, three-bath properties in the West Loop that are popular with all three generations. The units all have private elevators; balconies, terraces, or roof decks; and available parking. Resales that come up are snapped up in a day. Given demand, we’re marketing our fifth development, CA Washington at 1045 W. Washington, with prices ranging from $850,000 to $1,150,900. We also developed 600 N. Lake Shore Dr., where the three-beds are the most popular unit. The most recent sale there, a three-bed, 3.5-bath, 2,547-square-foot unit, just closed for $1.64 million. I have clients who watch that building for the three-bedrooms. JH: Young families are interested in three vintage properties we’re marketing, all now owned by Boomers who raised their families and now want different types of properties. A 4,000-square-foot duplex coop at 1448 N. Lake Shore Dr. has three beds, two maids’ rooms, 4.5 baths, and a media room for $2.29 million; a 7,000-square-foot-plus home at 1904 W. Patterson built in 1891 has seven beds, 7.5 baths, a three-car garage, and a 62.5-by-125 lot; and a 6,100 square-foot condo at 189 E. Lake Shore Dr. has four beds and 4.5 baths for $6.499 million. All are in pristine condition.