A recent sale of a luxury condo in Chicago's Gold Coast neighborhood for significantly less than its asking price highlights a broader trend affecting the downtown Chicago condo market, particularly in high-end areas. Despite the property's luxurious features, it experienced multiple price reductions before selling, indicating a shift in market conditions. The sale, coupled with other high-profile transactions in the same building, suggests a potential devaluation of luxury condos in the area.
A luxury condo in Chicago 's Gold Coast neighborhood recently sold for significantly less than its owners had hoped. The four-bedroom, four-and-a-half-bathroom residence, initially listed at roughly $7.2 million in February 2024, eventually sold for $5.7 million on January 31. This sale is emblematic of a broader trend affecting the downtown Chicago condo market , particularly in high-end areas like the Gold Coast .
Despite the condo's luxurious features, including 11-foot ceilings, a double-sized heated terrace, and a gourmet kitchen, the property experienced two significant price reductions before securing a buyer. While the overall Chicago area has seen more than a 9 percent rise in median home prices year-over-year, per Redfin, the market for luxury downtown properties has not fared as well. The property, located at 9 W Walton St on the 29th floor, was originally purchased for $6,950,000 in 2019. When first listed for sale in February 2024, the price was set at $7,175,000 and adjusted down to $6,495,000 in September. Ultimately, it sold for $5.7 million early this year. The final sale price reflects a 20 percent drop from its initial listing and an 18 percent loss from the $6.95 million the owners paid for it in 2019. This loss comes after a recent high-profile transaction in the same building involving Illinois Governor JB Pritzker, who purchased the top two floors from billionaire Citadel CEO Ken Griffin. Griffin had a $15 million loss on his investment. The condo's sequence of price drops and the final sale reflect a significant devaluation, suggesting that some sellers are adjusting expectations in light of market conditions. Despite a generally stable market across Chicago, certain upscale neighborhoods like the Gold Coast aren't seeing success in their condo markets. 'Not every corner of the city is performing well. Luxury condo owners in Streeterville, the Gold Coast and the Loop have indeed fallen on hard times, and 'crisis' may well be the appropriate word for the housing market in those neighborhoods,' per a Chicago Tribune article published in December. In contrast, the general Chicago condo market has seen some growth, with a 5.17 percent price increase over the past year, outperforming other major cities. This growth is driven by factors like value, urban renewal and economic stability, per a Hausmarkt analysis, which continues to attract a diverse range of buyers. Dennis Rodkin, a reporter at Crain's, said on 'Crain's Daily Gist' podcast last week regarding Chicago's highest-price home sales in 2024: 'Several of the top sales were at a loss. Pritzkers paid quite a bit less than Ken Griffin had paid for the properties years before... So, we're not seeing the sort of excessive puffiness in those upper-level prices that you might imagine when I say that there have been a lot of sales. A lot of these are sold at discounts. Nevertheless, they are selling.' Per a December 2024 article written by the Chicago Tribune editorial board: 'A weak market for some of Chicago's most expensive downtown homes makes a poor barometer for the property market overall. In fact, Chicago-area homes have seen prices rise an estimated 7 percent this year and they remain relatively affordable compared to other big metropolitan areas.' Though the condo market in Chicago is 'poised to maintain its upward trajectory,' per Hausmarkt—the fate of condos in high-end Chicago neighborhoods like the Gold Coast remains uncertain for now.
Condo Market Chicago Gold Coast Luxury Real Estate Price Reductions Market Trends Real Estate Investment
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