A luxury condo in Chicago’s Gold Coast neighborhood recently sold for a price well below the sellers’ expectations.
The four-bedroom, four-and-a-half-bath home, originally listed for about \$7.2 million in February 2024, was ultimately sold for \$5.7 million on March 31.
Why Is This Important?
This sale reflects a broader trend impacting the downtown Chicago condo market, especially in upscale neighborhoods like the Gold Coast.
Although the condo boasted high-end features—such as 11-foot ceilings, a spacious heated terrace, and a gourmet kitchen—it underwent two major price cuts before finally attracting a buyer.
Although median home prices across the greater Chicago area have risen by over 9% year-over-year, according to Redfin, the market for luxury properties in downtown Chicago has lagged behind.
What To Know?
A unit on the 29th floor of 9 W Walton St, originally purchased for $6.95 million in 2019, was first listed for sale in February 2024 at $7.175 million. The price was later reduced to $6.495 million in September before ultimately selling for $5.7 million earlier this year.
The final sale represents a 20% decrease from the initial asking price and an 18% loss compared to the 2019 purchase price.
This sale follows another notable transaction in the building: Illinois Governor JB Pritzker’s purchase of the top two floors from Citadel CEO Ken Griffin, who reportedly took a $15 million loss on the deal.
The series of price reductions and the eventual sale of the condo indicate a notable decline in value, pointing to some sellers lowering their expectations in response to current market conditions. While Chicago’s overall market remains relatively stable, luxury neighborhoods like the Gold Coast are struggling to gain traction in the condo sector.
While some areas of Chicago are thriving, others are facing significant challenges. According to a Chicago Tribune article from December, luxury condo markets in neighborhoods like Streeterville, the Gold Coast, and the Loop are struggling—so much so that the term “crisis” may be fitting to describe conditions there.
Meanwhile, the broader Chicago condo market is showing resilience. Prices have risen 5.17% over the past year, outpacing growth in many other major cities. This upward trend is fueled by factors such as affordability, ongoing urban revitalization, and the city’s economic stability, according to an analysis by Hausmarkt. These conditions continue to attract a diverse mix of buyers.
