Glenn Ellyn: Why did property jump in the last 3 years? (Chicago: mortgage, real estate)

[Shiv]

I was randomly checking some prices in Glen Ellyn, and saw that some of them seemed to have experience a 3-fold jump in the last 3 years (excluding the last 3 months).

E.g: 715 Marston Ave Glen Ellyn IL 60137 (pulled at random)

Is this a quirk with Zillow.com, or did something incredible happen in Glen ellyn?

Thanks,
Shiv

[Windy City John]

You may be looking at teardown homes that being rebuilt-- so this would explain the 3 fold jump you are seeing. Buildable teardown lots in Glen Ellyn are ranging from $300-$379 in desired areas and buyers are building $1-$1.3 M homes on these sites.

[HOWELL_STREET]

... In today's economic situation, people are moving back to the larger cities in hopes of squeezing back into an employment situation. Obviously, there is less employment in 'your' favorite town ('you' name a town where the employment is turning down). Perhaps in Florida, Nevada, or California?

When people search for a beautiful area to live - - in the Chicago Land suburbs - - EVERYONE wants the exact same things. And it is not very difficult to figure out what people want.

Believe it or not, many people consider the very first as a nice town to live in. But the first should be where one finds employment. Then second, a nice town.

There are many people in the Chicago area willing to help YOU in your town quest on this City - Data Forum. And that is including me.

Since I have lived in my home town of Wheaton, IL (adjacent to Glen Ellyn) for 41 years, I promote Wheaton, Glen Ellyn, Winfield, Carol Stream and even parts of West Chicago as a beautiful area to live.

And with such advertising - - and there are a huge number of people searching for Chicago area homes - - it becomes supply and demand.

Realtors and even home owners recognize this very quickly and so they pump up the prices when people chase beautiful homes to buy.

But that is currently turning down, now, and some predict that prices will / or could drop as much as 40%.

Since my own youngest son is a mortgage processor for a large mortgage company - - he also personally agrees with the huge drop. But he says that he doesn't know by 'how much'.

Carter Glass,
Wheaton, IL

[Windy City John]

Carter

I have to counter your statements-- I would caution you about lumping all real estate in to one category and promoting "the sky is falling" attitude. Homes are selling within 5-10% of asking price here in the burbs. When comparing in-town 4 br 2 1/2 bath Glen Ellyn home sales from year to year you actually will see and a slight increase of avg sales price--this is far from your dire forecast of 40% decline. I'm tired of people dooming and glooming the Chicago real estate market-- we are not California where they had 10% a month appreciation for 18 months straight. Here in the Chicagolands people can expect their homes to double in value every 10-12 years-- that turns out to be a 6%-7% appreciation rate. It's a good investment. Like any other investment buy low and sell high! It's a buyer's market--buy wise.

[HOWELL_STREET]

With your reply, I would have to assume that you are a realtor. That's because you seem to be very defensive regarding the current real estate scenario. Of course, if you are a realtor than you would not want to 'see' a panic with a price drop of 40% for asking prices.

Whether you like this or not - - it could very well happen and 'we', 'you', or 'me' don't have any control over it.

As a suggestion to you and everyone else, read the book, "The Florda Land Boom" (and bust) book. It was written by William Frazer during the 1995 - 1996 circa - - when he was an economics professor at the University of Florida.

The book is all about the economic situation that occured starting around 1925 and then heading into the Great Depression of 1929. It seems to be William Frazer's opinion that the Florida Land Bust that started about circa 1927 was a major factor in contributing to the 1929 depression.

So this is the book that I base my opinion and comments upon since I have read the book.

If you disagree, then seek out William Frazer for your debate.

In reading that book, you will note the simularities between the events of that period and what we are starting to experience today.

The book is so popular, that several book sellers now have it listed for $277 per copy when the list price is only $101.

So please check it out.

Best Regards,

Carter Glass

[Windy City John]

Carter not defensive-just stating facts. Here are the numbers for a 4 bedroom 2 to 3 bath home in Glen Ellyn. 3% gain year over year.

2007 year to date

Avg. Sold Price

$506,463

2006 Jan -Nov 15 2006

Avg. Sold Price

$490,576

[HOWELL_STREET]

Hello Windy City John:

Have you ever dropped by the City - Data "Mortgage" Forum? Since you sound like a realtor, perhaps you might have an interest(?) I can't recall seeing you there, but there are a lot of people on that forum.

Carter Glass
Wheaton, IL

[Joe107]

Long term Real Estate averages 6% per year in Chicago area ( historically)

From 2001 to 2005 we saw double that.

2006 to 2010 should have a zero percent rate of return. This is called " reversion to the mean"
You see it in the stock market when it gets out of whack, and now we are seeing it in the real estate market.

[Windy City John]

Glen Ellyn is a very nice commumity--property values reflect the desirability