The market for Chicago-area homes selling at $1 million or more showed broad strength in the first quarter of 2018, according to the RE/MAX Luxury Report on Metro Chicago

Real Estate, a quarterly analysis of market activity.

First-quarter sales totaled 489 units, the most in that quarter since RE/MAX began tracking luxury sales in 2011 and an increase of +7.5% over the same quarter last year.

The median sale price of million-dollar-plus homes increased 5.5% to $1.35 million. It was the second consecutive quarterly gain following four quarters in which the median price declined in comparison to the same period one year earlier.

Luxury listings fell -5.6% to 2,742 units, declining only -0.6% in the City of Chicago but falling -8.4% in the suburbs where the inventory had been especially high for the last few years. Even with that reduction, existing luxury listings in the suburbs still represent a 22.5-month supply of homes based on the pace of first-quarter sales. In comparison, there is an 11.8-month supply of luxury homes in Chicago.

“Demand for luxury homes is clearly on the upswing right now, but only time will tell if this is a temporary situation sparked by buyers eager to act before interest rates move higher, or if this reflects a longer-term trend that will help pare down the large number of luxury listings on the market,” said Jeff LaGrange, Vice President, RE/MAX Northern Illinois Region.

“Of particular interest going forward will be the trend in the median sales price. If it continues to advance, it will confirm that demand and supply are moving into better balance,” he said.