Housing market issues

[NorthSideSox72]

One of the not-so-great effects of the housing boom. Housing is now that much more difficult to afford.

 

Good news: Chicago is still one of the most reasonably priced cities in the country for housing. That's not only good for those looking for housing, but also good for current owners (as far as seeing better value in their homes, since there is more room topside in the market). Makes me glad I am here.

 

How does the housing market effect you folks?

[jasonxctf]

actually the market slump over the past year caused me to take a steep decrease in my sale... however it was fun turning the tables on the purchase of my new home.

[Soxy]

Well, I live in a pretty depressed market, so housing prices here are pretty low and we weren't really affected when the bubble burst.

 

I'm not expecting much of an effect when I re-sell in a couple of years. I've put a little money in the house, that I should get back (and more) when I re-sell.

 

My parents live out in the south-west (ish) suburbs, and there's been some huge fallout there with the bubble bursting. A lot of the new subdivisions have a lot of homes in foreclosure, and people had paid more for houses than they're currently worth. Plus with the housing boom, a lot of the homes are less than hot quality. My dad is a contractor and has been doing some rather major repairs in some of the big subdivisions you wouldn't expect would be needed on homes that are less than 10 years old. My parents live in an older home, so they aren't really affected by the market down-turn--but they've seen the after effects much more than I have.

 

I guess the biggest direct effect of the housing market that I've felt is really considerign where I'd like to settle and get a job in the future. Big cities and suburbs are kind of out, and I'm going to gear my job search (in two years) towards smaller towns and more rural communities where I'll actually be able to afford a house again.

[Controlled Chaos]

I've been looking at houses here and there in the west suburbs and if you want something under 10 years old, unless you go way out west...you're payin 500,000 minimum.

 

I also can't figure out for the life of me how people afford to tear down and re build. I think there's just a whole lot more rich people out there than I thought.

[Soxy]

I've been looking at houses here and there in the west suburbs and if you want something under 10 years old, unless you go way out west...you're payin 500,000 minimum.

 

I also can't figure out for the life of me how people afford to tear down and re build. I think there's just a whole lot more rich people out there than I thought.

Or people that take out mortgages they can't really afford.

 

I have a feeling a lot of people take out those interest only mortgages and aren't really saving for when the payments will bloom up.

[Queen Prawn]

I also can't figure out for the life of me how people afford to tear down and re build. I think there's just a whole lot more rich people out there than I thought.

 

We did that in the city (almost a complete tear down). Our mortgage at the time was about 90-92 and the rebuild cost us about 100K-110K which worked out to be cheaper than moving to a larger home.

[Controlled Chaos]

We did that in the city (almost a complete tear down). Our mortgage at the time was about 90-92 and the rebuild cost us about 100K-110K which worked out to be cheaper than moving to a larger home.

 

Sorry for the confusion, I meant purchasing a house just to tear it down and rebuild. The smallest dumpiest houses are going for 150-250 and then people knock em down and rebuild.

 

Hell my wife is from norridge and the basic chicago style bungalow houses are selling for 400,000 and people are buying them and knocking em down and building mansions. Why you would do that in Norridge, I don't know, but there's tons of it going on right now.

[Queen Prawn]

Sorry for the confusion, I meant purchasing a house just to tear it down and rebuild. The smallest dumpiest houses are going for 150-250 and then people knock em down and rebuild.

 

Hell my wife is from norridge and the basic chicago style bungalow houses are selling for 400,000 and people are buying them and knocking em down and building mansions. Why you would do that in Norridge, I don't know, but there's tons of it going on right now.

 

Yeah, I don't get that either. The guy that lives behind us sold his shack (I hesitate to call it a house) to some developers for $180K. The house the rebuilt is going for just shy of $500K. Makes us sick because it is doing a number on our taxes hence why we are considering moving to central IL by his brother.

Edited January 10, 2007 by Queen Prawn

[southsider2k5]

Or people that take out mortgages they can't really afford.

 

I have a feeling a lot of people take out those interest only mortgages and aren't really saving for when the payments will bloom up.

 

*DING* Winner.

 

The key is to stay within your means, and invest smartly. People who were treating houses as commodities missed the fact that there isn't a liquid market to get rid of houses quickly, no matter what. You have to wait for someone to buy your place, and that can take time.

[Balance]

This is a subject I'll be very interested in for the next year or so. The wife and I do want to move from the city to the suburbs, especially after our first child is born (this coming July).

 

FWIW, I've been looking at homes on the internet, focusing on the west and northwest suburbs, and I'm seeing a lot in the $300k-$350k range. Many of those are somewhat older homes. If you're looking at Naperville, for example, you can get a home cheaper than that- just be prepared to live on the far south side of town, in Will County.

 

I honestly haven't looked at much in the way of the closer-in suburbs yet. My main worry is selling my current condo. I've never sold a place before, and I don't know how difficult it will be.

[Controlled Chaos]

Yeah, I don't get that either. The guy that lives behind us sold his shack (I hesitate to call it a house) to some developers for $180K. The house the rebuilt is going for just shy of $500K. Makes us sick because it is doing a number on our taxes hence why we are considering moving to central IL by his brother.

Westmont is booming with tear downs

 

Here' is an example http://realtor.com/Prop/1072367486 and this is what will replace it http://realtor.com/Prop/1060346634

[NorthSideSox72]

I have to confess, I've been fortunate. Bought a condo in the city in 2004, in a great little neighborhood, just as it started to bloom. And we've invested in upgrading the place as well. Our place has gone up 20% or so since then. But, now that the market is slowing a bit, I suspect the value retreated a bit.

 

I'm a little concerned now about our future plans, though. Our plan was to move to the burbs for a house sometime in 2008 or so, around the time we are thinking about starting a family. But looking at any of the suburbs that are worth living in, housing is incredibly expensive unless you go way out to BFE (as people have mentioned already). We will have to stretch to make it work, especially if we have a kid and (at least temporarily) go to one income.

 

So here is a good topic for discussion - who knows of a suburb, preferably on or near a Metra line, that has good schools, is safe, and has reasonable housing prices? The Chicago area has something like 300 different municipalities. There must be some hidden gems somewhere!

[Balance]

So here is a good topic for discussion - who knows of a suburb, preferably on or near a Metra line, that has good schools, is safe, and has reasonable housing prices? The Chicago area has something like 300 different municipalities. There must be some hidden gems somewhere!

I'm looking for very much the same thing. Let's see what we can find!

[Soxy]

Montgomery is rather affordable, as are some parts of Aurora. Of course that's relative. But if you compare prices there to, say, Oswego or Naperhell--I mean Naperville they're pretty reasonable.

 

Aurora schools are a bit suspect, but Montgomery usually goes to Oswego districts which are good schools.

[NorthSideSox72]

This is a subject I'll be very interested in for the next year or so. The wife and I do want to move from the city to the suburbs, especially after our first child is born (this coming July).

 

FWIW, I've been looking at homes on the internet, focusing on the west and northwest suburbs, and I'm seeing a lot in the $300k-$350k range. Many of those are somewhat older homes. If you're looking at Naperville, for example, you can get a home cheaper than that- just be prepared to live on the far south side of town, in Will County.

 

I honestly haven't looked at much in the way of the closer-in suburbs yet. My main worry is selling my current condo. I've never sold a place before, and I don't know how difficult it will be.

Let me give you a piece of advice on selling a condo...

 

Assuming you use a realtor to sell (which most people do), make sure your realtor is smart/capable enough to get your place listed on the MLS. The MLS (if you don't know) is basically a common place for home listings from all major and some small realtors, such that if you search for homes on one site (say, Coldwell Banker), you will also see homes listed by other realtors. This is a HUGE advantage. Amazingly, a guy is trying to sell a condo down the street and was complaining he wasn't getting anywhere - and if I go search the web for his place, its nowhere to be found.

 

So, just make sure they get it on the MLS, or else you only get a very, very small part of the potential market to see it. If you don't want the larger commission cost, then just use Buy Owner or one of these super-cheap services. Don't pay a commission to a realtor who doesn't at least get you on the MLS.

 

 

Montgomery is rather affordable, as are some parts of Aurora. Of course that's relative. But if you compare prices there to, say, Oswego or Naperhell--I mean Naperville they're pretty reasonable.

 

Aurora schools are a bit suspect, but Montgomery usually goes to Oswego districts which are good schools.

I'm hoping for something a bot closer to the city than Montgomery, but, I may have to bite the bullet.

[Controlled Chaos]

I'm hoping for something a bot closer to the city than Montgomery, but, I may have to bite the bullet.

 

I don't want to bite the bullet. This blows!!

[Soxy]

I'm hoping for something a bot closer to the city than Montgomery, but, I may have to bite the bullet.

I was literally going through all the metra stops, on that line, and I couldn't think of any there that would be very affordable. I have a couple of friends renting in Downers Grove and they're talking about moving out of DuPage soon just so they can afford a house.

[southsider2k5]

Lots of the towns close to the South Shore line in NW IN are dirt cheap when compared to any of the suburbs or city. Granted I am further out than most, but I paid a fraction of what many people are talking about on here.

[Controlled Chaos]

I was literally going through all the metra stops, on that line, and I couldn't think of any there that would be very affordable. I have a couple of friends renting in Downers Grove and they're talking about moving out of DuPage soon just so they can afford a house.

My townhouse is in Lisle, literally across the street from the Metra train station. It's a 2 minute walk. Id hate to leave because it is so perfect for commuting, but once we go for baby #2 we'll need a bigger place. My wife's parents are in Norridge and mine are in Darien. Ideally we'd like to find something in the middle. Unfortunately, those suburbs are like downers, westmont, oak brook, hinsdale, elmhurst willowbrook pretty much all the places where prices are way too high....

[NorthSideSox72]

I was literally going through all the metra stops, on that line, and I couldn't think of any there that would be very affordable. I have a couple of friends renting in Downers Grove and they're talking about moving out of DuPage soon just so they can afford a house.

My wife and I went through an exercise much like that recently. We used Metra as a guide. We tried to find suburbs that had Metra stations, which had trains that were an hour to downtown or less (eliminated stuff like Geneva/LaFox/Elburn, Elgin/Big Timber, etc.). We then eliminated ones with significant crime problems or lousy school systems, ones we could never afford in any case (anything on the north shore for example), and eliminated Metra lines in the south and southwest suburbs (our families are N and W burbs). That left us a list of about 50 suburbs to choose from. Seems pretty good, yeah?

 

We then took those suburbs and searched homes on realtor sites, and set the threshhold for 400k or less (for 3+ BR, 2+ BA, garage, yard, single family home). Suddenly, half those suburbs were eliminated because they had basically no homes available (or had like one or two, that were tear-down specials). Only about 15 of the suburbs had more than half a dozen homes that fit that criteria. It was amazing.

 

I think we're going to end up paying for the neighborhood and the schools, and buy an older home that needs some work. Yay projects for me!

[Soxy]

My wife and I went through an exercise much like that recently. We used Metra as a guide. We tried to find suburbs that had Metra stations, which had trains that were an hour to downtown or less (eliminated stuff like Geneva/LaFox/Elburn, Elgin/Big Timber, etc.). We then eliminated ones with significant crime problems or lousy school systems, ones we could never afford in any case (anything on the north shore for example), and eliminated Metra lines in the south and southwest suburbs (our families are N and W burbs). That left us a list of about 50 suburbs to choose from. Seems pretty good, yeah?

 

We then took those suburbs and searched homes on realtor sites, and set the threshhold for 400k or less (for 3+ BR, 2+ BA, garage, yard, single family home). Suddenly, half those suburbs were eliminated because they had basically no homes available (or had like one or two, that were tear-down specials). Only about 15 of the suburbs had more than half a dozen homes that fit that criteria. It was amazing.

 

I think we're going to end up paying for the neighborhood and the schools, and buy an older home that needs some work. Yay projects for me!

When I bought my house out here that's basically what I did. I chose a nice, safe neighborhood, and a (kind of) crappy house. On the plus side, I'm now a pretty good DIYer.

 

But it is crazy how expensive housing is out in the suburbs. Even if I landed a great job at UIC or something, I might still be priced out of my hometown. Kind of sad. It really reminds me of the housing situation over in the UK--people paying more for a small flat than I would ever want to pay for a house.

[EvilMonkey]

I have a house 4 doors down from me for sale in the Joliet/Plainfield area for just a little over $200,000. Has 2 car garage, 3 bedrooms, basement, good size yard, etc. and is only about 8 years old, so shouldn't need any DIY. Train station is about 10 minutes away. Several cops live in the neighborhood as well, so pretty safe. I went thru the same crap before moving out here. I wanted something closer to my work in the Carol Stream area, but the same house I have now was $100,000+ more up there! IN fact, I found a house 4 blocks from my store, that was basically the same thing I have now, only about 4 or 5 years older, and it was selling for $425,000!!!! I bought mine for less than $200,000 2 years ago! Schools,safety and affordability were the priority, and finding all 3 was tough. I think I managed to get all 3, although I also managed to get 'traffic', as the Plainfield area is like driving thru Schaumburg sometimes. Good luck.

[Rex Kickass]

I saw a house that I loved for 199K here in Asbury Park. Til I checked it out further and saw it was in about the worst crime spot in the city. Few houses are to be had where I live for under 300K - and that's in a "transitional" neighborhood.

[CanOfCorn]

C'mon people, where's that Urban Pioneer spirit?

 

I know it's a little out there, but what about the Jefferson/Edison Park area? How expensive is that area? I also have friends that have moved out to Old Irving Park. Both on the blue line, obviously the schools aren't great, but I think still affordable and relatively safe for a big city.

 

And those prices are one reason I find it hard to move back to Chicago from Texas or to any other big city (my wife is from Connecticut, so we have discussed Boston as a destination, as well).

 

Austin is, so Texans think, expensive, but it really isn't. I bought a house for at least $150,000 less than a friend of mine that lives in Deerfield. Our house is smaller, but we have more land. Anyway, there's no way I'd be able to afford that house. Bottom line, the bubble hasn't burst down here yet, but with the amount of building and the amount of land still available, I can't imagine this boom is going to last that much longer. Kind of a catch-22, eh?

[Iwritecode]

Sorry for the confusion, I meant purchasing a house just to tear it down and rebuild. The smallest dumpiest houses are going for 150-250 and then people knock em down and rebuild.

 

Hell my wife is from norridge and the basic chicago style bungalow houses are selling for 400,000 and people are buying them and knocking em down and building mansions. Why you would do that in Norridge, I don't know, but there's tons of it going on right now.

 

I wish somebody would do that with our house. There are so many things wrong with it, it would probably just be easier.

 

With the amount we paid for the POS, we could get a bigger and better one for the same price. The problem is that we could never sell our current one in the shape that it's in. We also can't afford to do the necessary repairs to make it sellable so we are kind of stuck.