Chicago Luxury Real Estate Market Report: September 2025 Analysis
The Chicago luxury real estate market continues to demonstrate strong seller momentum as we move through 2025. This comprehensive market analysis reveals key trends for both single-family homes and attached properties in the luxury segment.
Single-Family Luxury Homes: A Strong Seller's Market
Market Overview - August 2025
The Chicago single-family luxury home market (priced at $850,000 and above) is experiencing robust activity with a remarkable 73% sales ratio, firmly establishing it as a seller's market. Here are the key metrics:
- Total Inventory: 539 homes (down 18% from August 2024)
- Total Sales: 394 homes (up 9% year-over-year)
- Median Sales Price: $1,351,444 (down 2% from last year)
- Days on Market: 12 days (improved from 13 days in August 2024)
- Sale-to-List Price Ratio: 100.00% (homes selling at full asking price)
- Price Per Square Foot: $373 (up 2% annually)
Most Active Price Segments
The $1,000,000-$1,099,999 price band leads the market with an exceptional 165% sales ratio, indicating sales exceeded available inventory. Other strong segments include:
- $850,000-$899,999: 100% sales ratio (27 sales, 27 listings)
- $1,300,000-$1,499,999: 109% sales ratio (63 sales, 58 listings)
- $900,000-$999,999: 124% sales ratio (57 sales, 46 listings)
Property Size Trends
Smaller luxury homes continue to move fastest:
- Under 3,000 sq ft: 134% sales ratio, median price $980,000
- 3,000-3,999 sq ft: 95% sales ratio, median price $1,250,000
- 4,000-4,999 sq ft: 73% sales ratio, median price $1,550,000
Larger estates (7,000+ square feet) show a slower 20% sales ratio with a median price of $2,900,000.
Attached Homes: Competitive Luxury Condo Market
Market Overview - August 2025
The attached luxury home market (priced at $750,000 and above) shows a 35% sales ratio, maintaining seller's market conditions:
- Total Inventory: 568 units (down 16% from August 2024)
- Total Sales: 200 units (up 10% year-over-year)
- Median Sales Price: $940,000 (down 2% from last year)
- Days on Market: 14 days (down dramatically from 26 days in August 2024)
- Sale-to-List Price Ratio: 99.94%
- Price Per Square Foot: $453 (up 3% annually)
Top Performing Price Bands
The most competitive segment is $800,000-$849,999 with a perfect 100% sales ratio (33 sales matching 33 listings). Other active bands include:
- $750,000-$799,999: 55% sales ratio (33 sales, 60 listings)
- $950,000-$999,999: 59% sales ratio (22 sales, 37 listings)
- $1,000,000-$1,099,999: 36% sales ratio (12 sales, 33 listings)
Size and Value Analysis
- Under 2,000 sq ft: 36% sales ratio, median price $877,500
- 2,000-2,499 sq ft: 46% sales ratio, median price $920,500
- 2,500-2,999 sq ft: 43% sales ratio, median price $1,110,000
Larger attached homes (4,000+ sq ft) represent just 4% of sales activity with a median price of $1,750,000.
Key Takeaways for Buyers and Sellers
For Sellers:
- Limited inventory is driving competitive conditions across both property types
- Homes are selling faster than last year, with reduced days on market
- Properties in the $850,000-$1,500,000 range are experiencing the strongest demand
- Full asking price sales are common, particularly for single-family homes
For Buyers:
- Act quickly in the under-$1.5 million single-family market
- Competition remains fierce with many price bands showing sales ratios above 50%
- Attached homes under 3,000 square feet offer the best selection relative to demand
- Larger estates and luxury condos provide more negotiating opportunities
Market Outlook: With inventory down 16-18% year-over-year and sales volume up approximately 10%, the Chicago luxury market continues to favor sellers. The improvement in days on market and consistent sale-to-list price ratios demonstrate sustained buyer confidence in the luxury segment.
Data sourced from the Institute for Luxury Home Marketing, September 2025 report for Chicago, Illinois. Market classifications: Buyer's Market (<12% sales ratio), Balanced Market (12-21%), Seller's Market (≥21%).
