Medical professional working at Loyola hosp. needs advice regarding loctation and purchase vs. renting (Chicago: houses, landscaping)
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Data shows percent change in home values from 10/31/13 to 10/31/14. Quite a spread. Chet wins.
Of course he does! I would love to have bought in to Clarendon Hills back when he did. Great decision.
And I'm happy to see some home appreciation in Glen Ellyn, even though I plan to stay in my current house for a very long time. I've said it before... I still have my automated emails coming in about new homes in our 2013 price range meeting our parameters, and I'm seeing fewer and fewer nice homes come in under $550k near the downtown and train station.
But some of the climb in prices is due to replacement of older housing stock, and not appreciation of existing homes. The median single family home in Glen Ellyn is now somewhere around $540k, and I suspect that will climb as the teardown craze continues and affordable housing stock is demolished and replaced. There are currently so many teardowns under construction near my house that it is kind of mind boggling--far more than I've seen since before the Great Recession. I just saw a new one on my way to work that I hadn't noticed before, and sometimes you see more than one on the same block. This town will not remain affordable for long--if you can even call it that now.
I hate to see older houses knocked down, and don't particularly like many of the newer homes that come up in their place. But I guess it's a good sign that people want to invest in this area.
The fact is back when I bought my first home I was not quite as smart as am now -- it was in Villa Park and I thought it might appreciate faster than it did. I did live it in before I had kids and I did ok with as a rental too and then made out pretty good selling it, though price appreciation in towns with better schools and more high end features has been better.
I think the biggest "ceiling" on price appreciation is going to be property taxes -- even at rates as 'tolerable' as 2% that makes long term COL pretty darned high even for folks in "modest" homes with taxes under $10k...
It is a good sign that folks do continue to invest in nicer towns, though I agree that some new construction is not exactly stellar in design or execution. The diffciulty of some smaller homes is that they really do not meet the needs of modern life -- some of the little ranches have kitchens that really are about as functional as a sailboat (and I don't mean the kind that billionaires vacation on, I mean the scary old trawlers that whalers used back in the day -- tiny work area, questionable safety / sanitary issues, cupboards barely able to keep vermin out of your provisions...) and bathrooms that have more in common with a 1970s Red Roof Inn than a "luxury spa"...
Pretty much every white collar worker wants / needs some space in their home to set up a laptop and try to knock out some work without going into the office. Toss in the need for at least one wall big enough to hang 50"++ flat screen on and the thought of "remodeling" just does not make as much sense as "starting over". That makes a teardown that sells for anything under $300k the "land cost" of new home & a few "high end finishes" will push the completed over $1M very quickly...
In contrast towns when you can still subdivide lots for under $50k each drives the costs down under $700K, which still is LOTS of money and even in the more sane tax situations is still a ton of property tax liability.
I think the biggest "ceiling" on price appreciation is going to be property taxes -- even at rates as 'tolerable' as 2% that makes long term COL pretty darned high even for folks in "modest" homes with taxes under $10k...
It's certainly not going to help things. There are certainly parts of the country that have higher taxes than us and continue to be desirable (parts of Connecticut and New Jersey in the NYC metro come to mind), but there are only so many buyers who can absorb those huge tax bills, or who are willing to do so. Senate Bill 16 will make things worse, as will any sort of pension resolution that pushes more costs to local school districts. It is quite likely that we are about to find out exactly what happens when property taxes rise throughout the suburban region... and state. Probably the city too.
So, as much as I don't like teardowns, I don't mind seeing a $350,000 house replaced with a $850,000 house down the street, since in the end it could have a positive effect on my tax bill. The more my house falls down the price scale for this taxing district, the smaller the piece of the pie that I'm responsible for supporting with tax dollars in the end.
It's certainly not going to help things. There are certainly parts of the country that have higher taxes than us and continue to be desirable (parts of Connecticut and New Jersey in the NYC metro come to mind), but there are only so many buyers who can absorb those huge tax bills, or who are willing to do so. Senate Bill 16 will make things worse, as will any sort of pension resolution that pushes more costs to local school districts. It is quite likely that we are about to find out exactly what happens when property taxes rise throughout the suburban region... and state. Probably the city too.
So, as much as I don't like teardowns, I don't mind seeing a $350,000 house replaced with a $850,000 house down the street, since in the end it could have a positive effect on my tax bill. The more my house falls down the price scale for this taxing district, the smaller the piece of the pie that I'm responsible for supporting with tax dollars in the end.
Yea, I've seen a couple in progress tear downs around town that are simply gargantuan. On the scale of like 10k+ square feet. When completed they'll provide tax dollars equivalent to four or five more modest homes. I'm skeptical about the positive effect on tax liabilities of more modest homes though.
Last edited by holl1ngsworth; 11-25-2014 at 05:35 PM..
We have worked with Mike Zawislak of Baird & Warner in Downers Grove for a few years. He has been our agent for a few of our investment unit purchases, and is also a general contractor, so he is very capable of advising his clients about renovations.
Very nice of you to comment - sorry, but we had to change our parameters as the market dictated. As it is, prices are high for something decent, as Chet, LK, and H'worth pointed out. I also appreciate the physician info...that was a concern, too! Thanks for the realtor rec!!!
Quote:
Originally Posted by ToriaT
You should be able to find a lot of that info on Redfin including tax information and previous price history. I can't see why you need to look at permits and all that stuff... you don't need it. You can actually be swamped by too much data overload that is extraneous to what you need to make a decision. To boil it down simply, keep to the top tier western suburbs. They are Hinsdale, Clarendon Hills, Elmhurst, LaGrange, Glen Ellyn, Wheaton, and Downers Grove. Some would throw Western Springs in the mix. Forget about the rest. I think you have already eliminated Riverside, Oak Park and River Forest, its hard to keep up with this thread its so long!!! All of the places mentioned have historical type homes.
thanks, Toria, I do have a lot of data...it's helping me out narrow houses down, actually. It's part of my make-up. I used to be a surgeon, and more recently, a clinical researcher. So, I revel in the minutia and fine details!!! I use multiple discriminators to buy the best house possible. Although it drives my DH (and me) crazy in the process, it's served me very well in my prior house purchases. yes, I've been using the tools on redfin - found a lot of interesting things to keep in mind! There definitely are certain price points that are selling - higher ones are languishing - or coming down 10-15%. Some "instant equity" is out there - vs them being overpriced in the first place!
Can't wait to see these houses in person.
Well, everyone have a VERY happy Thanksgiving!!! I'll keep you guys posted as to our progress...Hopefully we'll have a house in a couple of weeks!!!
Yes be sure to post and tell us what you decide. There are a lot of people that come on here and really suck this forum dry for info, people spend hours helping them and then they disappear and never report back what they did. And Happy Thanksgiving to you and to all!
Hi All!!!
Just got back from a long trip and search to the western 'burbs...what an experience!
DH starts work in a couple of weeks, so we'll be in temporary quarters while we continue our search.
As you can see by the metamorphosis of this thread, parameters are ever-changing.
The trip there to scout out the areas recommended by all of you wonderful people was eye-opening! We were both enthralled as well as intimidated by the areas, traffic, as well as the energy of various towns and villages.
So...we're still considering the options, as well as price-points.
Of course, we will be subject to what pops up over the next few months- that will most likely dictate whether we will live in any of the villages/areas discussed. I cannot pick a "favorite" yet, as each of the villages had their positives and negatives.
We'll just have to spend more time at Starbuck's (or similar establishments) at each, to get more of the local feel and flair.
Again, I appreciated each and every one of you who had so kindly shared your time and advice! I could NOT have done this without you so far!!!!!
I have more questions about some specifics, for example, which websites are available that may have more history on previous house sales, renovation permits and structure questions, etc, but must organize myself a bit more, first. As I said, it was a high-energy trip, and we're recovering!
One thing for sure...we must get some good "traction" boots for ice and snow, as well as warmer clothing!!! (if anyone has any recommendations on great boots, boot ice grippers, etc., please post!)
Hope your Thanksgiving was yummy, and that your preparations for Christmas and the holidays are going well!
Cheers, and thank y'all again -
I'm curious to hear what you thought of the various suburbs you checked out. Are we giving decent advice?
LK, a resounding YES! I shall respond this weekend with a more in-depth response. Overall, I've learned so very much from everyone's experiences and advice - thus felt quite prepared going to the 'burbs to house hunt! My DH thought it was amusing, as I'd say that so-and-so said xyz about this village, etc. It was as if I had some of you with me! So, LK, yes...it was more than decent...I couldn't have done it without you all!!!
Now, yet another question for y'all. It has me quite frustrated, actually. We had found a house that we liked...however, I noticed that it had that Dryvit exterior (EIFS, or "fake stucco"), so we didn't pursue it any further.
Does anyone have any information about this material? I was concerned with regular stucco as it is, in such a wet and cold area. After much research, it seems to me that any house in the Chicago area that has this material on it would be a problem in all ways concerned, not to mention resale. I was surprised to see it being used, and wondered why the homeowner wouldn't have removed and replaced it with something else.
Any comments? Has the material or its application been improved enough to obviate any problems? I'd love to know!
Thanks! Stay warm!
In my experience selling homes the real "nightmare scenario" of EIFS are more likely to happen in areas where lots of unskilled laborers applied such products in clear violation of manufacturers standards -- lack of proper moisture barriers, improper substrates, errors in the details at doors & windows/ roofline. The higher-end custom builders in the nicer suburbs largely do things according to approved recommendations and problems are rare, especially when all the correct window / door / eave details are correct. There are lots of tools that a skilled home inspector can use to rule out concerns. Frankly the smarter sellers will BOTH encourage buyers to get their own inspection AS WELL AS present things like a home warranty AND results of seller's pre-sale inspection that verifies the soundness of the envelope. If EIFS is done right there is no reason to fear it...
When it comes to real stucco, laid up on appropriate lathe, there are many homes in nicer areas that are every bit as sound as any other exterior, be that brick, stone, clapboards etc -- despite our climate a properly applied cementious stucco can last centuries...
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thanks
energy-filled trip to the western 'burbs!
EIFS or fake stucco???
