Category: Blog

Is the winter Chicago real estate market warming up?

Data released this week from the Chicago Association of Realtors shows signs of a very active winter real estate market in Chicago. The number of homes under contract in December 2016 were up 33% from the same time period in 2015. In the city, buyers put 1,716 homes under contract in the four weeks ending just before Christmas.

Crain’s Chicago Business points out that while not all of these contracts will end up as closed deals in the next one to two months, a majority of them will. This will ultimately result in an increase in the number of closings in January and February 2017.

With more closed transactions comes higher listing/sale prices. This means people looking to buy a Chicago condo should start the process right now before the competitive spring real estate market becomes even hotter.

Spring is usually a popular time for people interested in buying real estate in Chicago. Buyers can often find themselves in bidding wars, or miss out entirely on a listing because it goes under contract quickly.

The Luxury Living Chicago Realty team’s advice, especially in light of the new data, is to get ahead of the competition and start the process of searching for a new home right now.

If you are interested in learning more about purchasing a condo in downtown Chicago, click the button below to connect with one of our experienced Chicago real estate brokers.

he Chicago real estate market made a nice comeback in 2016 and the luxury condo Chicago market is on pace to do well in the new year. Most new construction condos currently under development and in pre-sale are on the ultra-luxury scale.

Of course big spenders want the newest and nicest, so they are looking to purchase condos located in splashy Chicago real estate developments right in the heart of downtown like 4 East Elm, No. 9 Walton, and St. Regis Chicago (formerly Vista Tower).

Curbed Chicago recently listed the top 10 biggest sales in Chicago for 2016. 

The list features penthouse units at new developments, new construction town-homes in Lincoln Park for sale, and raw spaces ripe for a buyer looking to flex their design muscles.

Of course, no most expensive home sale list would be complete without a celebrity addition. The actor Vince Vaughn had difficulty selling his large triplex penthouse at the Palmolive Building so he decided to split the penthouse space up into two distinct units. After re-listing, the first penthouse unit sold quickly for $8 million in the fall of 2016.

For many renters, buying a downtown Chicago condo is the next logical step after renting an apartment for several years. If you enjoy high-rise living and believe you are committed to living downtown for the next five to 7 years, then purchasing a Chicago condo is definitely something that should be explored.

What do you need to know before you buy a Downtown Chicago condo?

1.) How much rent do you pay?

If you’re paying more than $2400 per month in rent, then you could potentially get a mortgage for less. In some neighborhoods with lower prices, mortgages can range from $1800-2200 per month.

2.) Where do you want to live?

The western and northern neighborhoods (like Lincoln Park, Bucktown, and Lakeview) are currently more of a seller’s market. When a seller puts something attractive on the market, it’s likely to sell quickly. However, if you want to live in the more central, downtown neighborhoods like Streeterville or River North, it’s a more of a buyers market because there is more supply, which means more to choose from.

3.) How much money do you need to put down?

A lot of buyers believe they need to put 20% down, but in reality, your down payment can be as low as 5%. This means you might not need to have as much money saved up as you had previously thought. It’s always best to speak with a mortgage broker before beginning the process of buying a downtown Chicago condo. Mortgage brokers will help you understand what you can afford and what types of loan options are available.

4.) What do you hope to gain from buying?

It’s very important to think about this before starting the sales process. Some people have a more romantic approach , where they’re looking for a home, while others are more financially focused and are looking to make an investment. A buyer’s perspective is a big driving factor behind the search because it will determine what types of available listings you’ll see.

After a dip in July 2016, the number of Chicago home sales increased in August 2016.

Sales increased 7.6 percent, with 11,906 homes sold in the nine-county area, up from 11,066 during August 2015, according to Illinois Realtors. The median price increased 4.5 percent to $230,000.

In the city of Chicago, home sales rose 2.6 percent with a median price of $275,000, a 1.5 percent increase. The condo market was relatively flat, with sales up less than 1 percent, and the median price down slightly to $304,000.

The Luxury Living Chicago Realty sales team‘s median sale price is higher than the city wide number, with an our average sale price coming in at $529,000 for the month of August 2016. This is because we specialize in downtown Chicago condos for sale.

Read the full Chicago home sale report here.

Buying your first Chicago home is a very exciting time in your life. The entire experience is new. It is imperative to work with a Chicago real estate team that understands the unique concerns and needs of someone purchasing Chicago real estate for the first time.

There are a few things you should keep in mind when searching for downtown Chicago real estate to buy. Recognizing some of the pitfalls of purchasing real estate will help you navigate the sales process seamlessly.

1.) Don’t Become Emotional

It’s very easy to become emotionally invested in real estate purchases. Perhaps the property brings about a feeling of nostalgia, or you can already envision your entire life living there and it seems perfect. However, don’t let your emotions get the better of you. Looking at a home objectively will help you steer clear of what happens when you make an emotional purchase – overspending.

2.) Don’t Spend More Than You Can Afford

Speaking of overspending, set a realistic budget and stick to it! When establishing your price range, remember to include costs of any upgrades you would like to make, utility payments, assessments and property taxes.

Meeting with a Chicago mortgage lender to get pre-approved will help to create a budget for you and your real estate agent.

3.)  Don’t Continue to Shop

Once you have found a home that meets most of your required needs, in a location that works for you, within your established budget then it is time to stop shopping. Continuing to look at real estate will only cause paralysis by analysis. Be confident in your decision and happy you have found a place to call home.

Following the above advice will help you keep a clear head when searching for your first Chicago home to buy. Above all else, remember to have fun. Buying your first home is a once in a lifetime experience.

According to the Chicago Local Market Tracker from Redfin for July 2016, 45.6 percent of homes in the West Loop sold for over asking price, the second highest rate in the city behind Humboldt Park. Typical homes in the West Loop sold in 41 days, tied with Logan Square and West Town for fourth fastest in the city, trailing only Brighton Park, Humboldt Park and Ukrainian Village.

Not surprisingly, the Gold Coast had the most expensive market in July, with a typical residence selling for $520,000. It was the only neighborhood to reach half-a-million. Wicker Park, North Center, Lincoln Park and Bucktown rounded out the top five most-expensive neighborhoods in Chicago.

You can read the whole report here.

1509 N. Hudson #4
Unit & Neighborhood: Old Town Two Bedrooms Condo

Offered At: $574,900

The Scoop: This top floor penthouse unit offers soaring ceilings, skylights, and tons of natural light. Perfect for entertaining, the open floor plan features oak floors, fire place, brand-new kitchen appliances, and granite countertops. The expansive master suite offers two closets with custom build outs, a Whirlpool tub with separate shower, and brand-new double vanity sink. The Old Town condo also features a private rooftop deck wired for sound with unobstructed skyline views.

Steps from: Wells Street and the CTA Sedgewick stop

Parking: Garage spot included

Contact: Axel Cohen – Axel@LuxuryChicagoApartments.com or 847-275-4536

UPDATE: This listing sold in December 2016.