Buying and Selling in the Luxury Market: Is Now the Right Time?

by Craig Hogan & Rudy Zavala

Buying and Selling in the Luxury Market: Is Now the Right Time?

What a ride. The first quarter of 2025 is already a wrap. In the blink of an eye, it went by—our attention pulled in every direction during a remarkably active and dynamic time in history. The recent sale of 77 East Cedar Street for $4.1 million in February exemplifies the enduring strength of the Gold Coast market as well as Engel & Völkers’ strategic approach in Chicago’s luxury markets. Despite a near stall in 2020, followed by several years of unprecedented market activity, today's market is stabilizing into the more balanced, yet competitive environment we see today.

Chicago comprises 77 official neighborhoods, all experiencing evolving markets' natural ebb and flow. With a focus on the top 10, we feel Chicago is undervalued, and our positive numbers will continue to climb. However, keeping it all in perspective is critical. Much like the story on the Gold Coast, the fact is that one can’t ride a wave that’s not there. No one and no property is immune to the impact of market cycles. When you hear advice coming your way with no data to back up that advice, that’s your exit ramp. Now more than ever, it’s critical to look at the data. Betting on anything other than that puts you on a slippery slope.

Most experienced brokers across the country will tell you that 2020 changed it all. That perspective is now in the rearview mirror. As March ends, the MLS reports that in the Near North area alone, there have been 15 closed transactions of $3M or more, topping out at just over $10M. Of those, 11 of the transactions were apartments in high-rise buildings.

Real estate is, after all, a commodity. As such, it’s all part of the supply and demand flow that all commodities are subject to. It goes up and it goes down. And it can happen faster than one would expect.

Expectations: The Larger Market

Many sources continue to predict rough times for some of the pandemic’s red-hot U.S. housing markets. No surprise here. Many reports have warned that residents in several markets, including San Jose, California; Austin, Texas; Phoenix, Arizona; and San Diego, California, could see price corrections that echo the 2008 housing collapse. Meanwhile, markets like New York and Chicago are expected to remain more resilient, with price adjustments predicted to be modest.

2024: Record-Breaking Sales and Rising Demand

Chicago’s luxury market is proving its resilience, with data from 2024 showing healthy performance at the high end. In 2024, data shows that 140 Chicago-area homes sold for $4 million or more, up from the 134 sold in 2023. And ten Chicago-area homes sold for $10 million or more last year, a slight uptick from the previous year. Notable transactions in 2024 were the sale of a custom mansion at 1932 N. Burling St. in Lincoln Park for $15.25 million. This 25,000-square-foot home is on an unparalleled 177' x 149' parcel spanning over eight city lots. Another record-setting sale in 2024 occurred in Bucktown, where a tech executive sold a home for $5.3 million, marking the most expensive residential transaction in the neighborhood’s history. All eyes were on the $19 million deal for the top two floors – a combined 15,000 square feet of unfinished space, complete with plans for a private rooftop pool and pavilion at 9 West Walton. Quite the story from our perspective.

Recent surveys reflect the positive energy surrounding the market we have already seen and heard ourselves, indicating that a significant percentage of Ultra-High-Net-Worth (UHNW) individuals still view real estate as a stable and attractive investment. At Engel & Völkers, we are hearing this firsthand from our clients: luxury buyers and sellers remain active, motivated, and strategic.

Artesian Street. Single Family Home

It’s a new year, the phone is ringing, the buyers are out, and new listings are coming up daily. After 29 years in this industry, I still have the same answer: "Is now a good time to buy or sell?” Until I figure out how to do the impossible and time the ups and downs of the market, that answer will always be yes. Who you work with matters.

At the Hogan Zavala Group, we know luxury—because we’ve lived it, sold it, and continue to shape it. Our affiliation with Engel & Völkers reflects our commitment to excellence. If you’re preparing to list a signature property or explore extraordinary homes, we’re ready to bring our full experience to your table. We work selectively and intentionally, seeking alignment with clients who value professionalism, discretion, and high performance.

Because in the upper bracket, experience isn’t a luxury—it’s a requirement.

At Engel & Völkers, we leverage a global network, unmatched marketing resources, and deep market expertise to provide our clients with the highest level of service and results. When you’re ready to buy or sell, we’re here to help you make your next move the best one yet.