Real Estate Market in chicago burbs (Time: foreclosures, rental, houses)

[Fighting Fungus]

From what I have observed and I have been studying it closely

1. Most houses on the market are over priced

2. The ones that are not go with n 1 week

3. People who bought between 2002-2009 are looking to get there money back and that ain't going to happen

4. The only positive is that there are not as many foreclosures

5. Many people over paid and are trying to get rid of there mortgage/bills problem is they are going to be forced to sell it for less, take it off market or rent it.

6. 3000 plus square foot homes are a horror to sell.

I predict prices will keep going down slightly

[Lookout Kid]

If houses are in a good location, they still sell quickly if they are priced appropriately.

Also, I'm noticing that the $750,000+ houses in my neighborhood are selling slowly, since they are on the higher end of houses around here. Houses in the $500k-$650k range are selling quickly, assuming they aren't overpriced.

Some people are definitely trying to recoup pre-recession housing investments, and it's their right to at least try. If they want to sell their houses, however, they will have to compromise or wait a long time for a buyer who is willing to pay more.

[JJski]

1. Agreed.

2. Agreed.

3. Kind of agree, unless you bought in the right location - those prices are back.

4. Agreed.

5. Agreed.

6. Disagree - In the right area the 3-4k square footage prices are still hot/hotter then before if done well. Goes back to location, location, location.

I predict prices will keep going (Up) especially in the desirable best locations.

In My Optimistic Opinion...

[BrianHunter]

How did you determine most houses are over priced? I would say some are but not most. Most realtors are not going to list a house way over market value because that would be a huge waste of their time since it wont sell. Realtors will give the home owner comparables in the neighborhood on what has actually sold.

I would say the housing market has really recovered since the market hit the bottom in 2010.

I definitely disagree that houses 3000 sq feet + are hard to sell. How did you determine that?

[Lookout Kid]

Originally Posted by BrianHunter

How did you determine most houses are over priced?

People say things like "all of the houses are overpriced" when the houses are priced higher than they would like to pay.

In reality, any house that SELLS is not overpriced.

[ToriaT]

True Look out Kid. Houses are selling. People that bought at the right time are going to get their money back and then some. Houses priced at the upper end will never sell like hotcakes because there is a limited number of people that can afford them. It appears as houses 2300 sq ft to 3000 sq ft will be the most popular and ones that will be within price ranges of most people. The housing market is much better now than it has been in a number of years.

[chet everett]

Originally Posted by Fighting Fungus

From what I have observed and I have been studying it closely

1. Most houses on the market are over priced Based on what? If you compare current TIME ON MARKET data, as well as PERCENTAGE OF ASKING PRICE TO SOLD PRICE this assertion is not supported

2. The ones that are not go with n 1 week Which STRONGLY suggests that there is VERY GOOD DEMAND / SUFFICIENT NUMBERS OF BUYERS and thus PRICES ARE LIKELY TO MOVE UPWARD

3. People who bought between 2002-2009 are looking to get there money back and that ain't going to happen The data clearly shows that prices in the region were moving STRONGLY upward through most of that period but sharply corrected during the second half of 2008, current sellers that bought properties that were part of that correction, in areas that have seen demand return, should have NO PROBLEM not just getting their money back but seeing positive returns.

4. The only positive is that there are not as many foreclosures The areas hardest hit by foreclosures include LOTS of areas that were marginal. The relative impact of these marginal areas on the overall regional price trends is necessarily outsized by the tendency of mass builders to have been caught by the combination of price reversals, lending restrictions, and more widespread acceptance of the value of "quality over quantity"

5. Many people over paid and are trying to get rid of there mortgage/bills problem is they are going to be forced to sell it for less, take it off market or rent it.The broad suburban market has very low percentages of rental single family homes, remarkably strong demand, and good price stability

6. 3000 plus square foot homes are a horror to sell.Based on??? All depends on the condition / location / features of the home. Many shoppers are specifically looking for homes of this size; it is very close to the national norm

I predict prices will keep going down slightlyYou have presented nothing more than opinions!

I almost decided to not waste my time with this but as there is now SOLID market data available from sources like Trulia and Redfin (as opposed to the former difficulty of non-MLS members / subscribers to assemble such info...) I have to agree with others that pointed out the fallacies inherent in this post.

An individual can express a DESIRE for prices to move downward (or upward if you intend to sell in the future...) but that desire won't by itself really move the market. The relative health of the Chicago suburban market is frankly somewhat surprising to me as I see many looming pressures for the whole state, but apparently the overall demand pressure is still driving prices in a positive direction in desirable suburbs.

[BrianHunter]

Originally Posted by Lookout Kid

People say things like "all of the houses are overpriced" when the houses are priced higher than they would like to pay.

In reality, any house that SELLS is not overpriced.

LOL - yeah, well I guess if the house costs more than YOU want to pay it is overpriced to YOU.

The market will determine if a house is over priced based on if there is any interest/showings/offers and of course if it sells.

[destination-unknown]

Originally Posted by Fighting Fungus

From what I have observed and I have been studying it closely

1. Most houses on the market are over priced

2. The ones that are not go with n 1 week

3. People who bought between 2002-2009 are looking to get there money back and that ain't going to happen

4. The only positive is that there are not as many foreclosures

5. Many people over paid and are trying to get rid of there mortgage/bills problem is they are going to be forced to sell it for less, take it off market or rent it.

6. 3000 plus square foot homes are a horror to sell.

I predict prices will keep going down slightly

Are you the husband of Rae4732?

[Fighting Fungus]

Originally Posted by BrianHunter

How did you determine most houses are over priced? I would say some are but not most. Most realtors are not going to list a house way over market value because that would be a huge waste of their time since it wont sell. Realtors will give the home owner comparables in the neighborhood on what has actually sold.

I would say the housing market has really recovered since the market hit the bottom in 2010.

I definitely disagree that houses 3000 sq feet + are hard to sell. How did you determine that?

I am not a realtor, but I would be willing to bet most Realtors would over price a house if owner demands it. There's always a chance owner will later decide to lower price.