Does anyone think we're entering another real estate bubble? (Chicago: for sale, condos)

[destination-unknown]

Originally Posted by 4122

The North Shore, Hinsdale, Western Springs, etc. are top notch schools and Glen Ellyn schools are hard to compare them too. Compared ti the rest of the chicago suburbs. Glen ellyn schools are pretty good.

No doubt they are pretty good but suburbs like Park Ridge, Riverside, and Mount Prospect also have good schools and you don't see a large flux of teardowns in those areas. My original point was that, one, I was surprised there are so many teardowns occurring in GE because I was ignorant to this fact and, two, that I am surprised GE draws so many teardown buyers because I never viewed it as a big draw based on the factors I previously mentioned. I can see the appeal for teardowns in suburbs such as those within the NS, parts of LaGrange, Hinsdale, WS, parts of Elmhurst, etc. but not so much with GE. That's all I was trying to say

[Lookout Kid]

Originally Posted by destination-unknown

Pretty far west in terms of its proximity/relationship to Chicago. Isn't Chicago typically used as the baseline when discussing the general location of a Chicagoland suburb?

Only to some degree. More people work outside of Chicago's Loop than in it, and many of the inner ring suburbs are crappy. Suburbs like Glen Ellyn would be considered "middle distance" in a huge metro area like Chicagoland.

Originally Posted by destination-unknown

In terms of schools, all the rankings I have seen have Glen Ellyn well below suburbs in the North Shore, Hinsdale, Western Springs, etc.

Those rankings are nearly 100% based on test scores. The North Shore towns and Hinsdale/Western Springs are still more expensive than Glen Ellyn and quite a bit less diverse. We're more in the Naperville/Elmhurst/Park Ridge type of orbit. Yet most of the D41 schools are typically within 5 percentage points of the top schools in the area in terms of ISAT scores. There is one D41 school that takes a lot of kids from Glendale Heights, and that school has lower scores.

Originally Posted by destination-unknown

It also looks like the property taxes are well above average compared to many of the affluent suburbs to the east of it, which would be a big turnoff for me if I were considering a teardown.

Evidence?

[Lookout Kid]

Originally Posted by destination-unknown

No doubt they are pretty good but suburbs like Park Ridge, Riverside, and Mount Prospect also have good schools and you don't see a large flux of teardowns in those areas.

Park Ridge has a LOT of teardowns. To the point that the look of the town has been drastically altered.

[pesco]

Originally Posted by Lookout Kid

Park Ridge has a LOT of teardowns. To the point that the look of the town has been drastically altered.

True. There are 4 alone on the block where I grew up.

Glen Ellyn is lovely, and I totally understand the appeal. The slightly longer train ride than Elmhurst, Hinsdale, LG, etc. was the deal breaker for us with 2 Loop commuting working parents. I don't consider it a downgrade from those aforementioned areas with the exception of Hinsdale.

[destination-unknown]

Originally Posted by Lookout Kid

Only to some degree. More people work outside of Chicago's Loop than in it, and many of the inner ring suburbs are crappy. Suburbs like Glen Ellyn would be considered "middle distance" in a huge metro area like Chicagoland.



Those rankings are nearly 100% based on test scores. The North Shore towns and Hinsdale/Western Springs are still more expensive than Glen Ellyn and quite a bit less diverse. We're more in the Naperville/Elmhurst/Park Ridge type of orbit. Yet most of the D41 schools are typically within 5 percentage points of the top schools in the area in terms of ISAT scores. There is one D41 school that takes a lot of kids from Glendale Heights, and that school has lower scores.



Evidence?

http://www.elmhurst.org/DocumentCenter/View/8816

[Lookout Kid]

Originally Posted by destination-unknown

http://www.elmhurst.org/DocumentCenter/View/8816

Since this is looking at EAV and the equalization factor in DuPage County is 1.0, you divide by three to find the effective tax rate. So Glen Ellyn is a third of one percent higher than some neighboring primarily residential suburbs, which isn't a whole lot. Tax rates are fluid and we are in the midst of some belt tightening in Glen Ellyn, so this could easily flip around within a very short period of time.

[wjj]

Originally Posted by Lookout Kid

Since this is looking at EAV and the equalization factor in DuPage County is 1.0, you divide by three to find the effective tax rate. So Glen Ellyn is a third of one percent higher than some neighboring primarily residential suburbs, which isn't a whole lot. Tax rates are fluid and we are in the midst of some belt tightening in Glen Ellyn, so this could easily flip around within a very short period of time.

A one third of one percent tax rate difference means an additional $1,700 in taxes each year on a house valued at $500,000. Whether that is a whole lot or not depends on the individual's view of these things. When we talk about tax rates of 2.4% of value in one suburb vs 2.75% in another, the difference can be significant in some people's eyes.

[Lookout Kid]

Originally Posted by wjj

A one third of one percent tax rate difference means an additional $1,700 in taxes each year on a house valued at $500,000. Whether that is a whole lot or not depends on the individual's view of these things. When we talk about tax rates of 2.4% of value in one suburb vs 2.75% in another, the difference can be significant in some people's eyes.

Sure, but these are not frozen rates. If you are making a decision about where to live for ten years, it's unlikely this situation will remain the same over time. We had a multi-year tax increase starting in 2005 that put us out ahead for a few years, but this can easily switch around.

[My Kind Of Town]

Originally Posted by Lookout Kid

Since this is looking at EAV and the equalization factor in DuPage County is 1.0, you divide by three to find the effective tax rate. So Glen Ellyn is a third of one percent higher than some neighboring primarily residential suburbs, which isn't a whole lot. Tax rates are fluid and we are in the midst of some belt tightening in Glen Ellyn, so this could easily flip around within a very short period of time.

The difference in tax rate between Glen Ellyn and say a suburb like Downers Grove would amount to ~$5600/year for a home valued at $800k. That IS significant. I'm not familiar with recent teardown activity in suburbs outside of Hinsdale/Western Springs but I would much prefer to build a new home in a suburb like Downers Grove over Glen Ellyn with taxes being a big reason why. That and I like downtown Downers Grove much better than downtown Glen Ellyn.

[ToriaT]

Glen Ellyn is a very beautiful suburb and very desirable with home buyers. Its got great transportations and a very nice downtown. Most downtowns are still reeling a bit from the downturn and have started to come back. I can completely see why there are tear downs there. We have quite a few teardowns in Wheaton too.