What do you think will happen to real estate prices in cook county suburbs? (Chicago: short sale, foreclosure)

[Fighting Fungus]

Will prices go down or up?

I predict prices will go up 2-3% a year for next 10 years.

No way to predict but if some one puts a gun to my head this is what I would say.

[JJski]

Agreed with fungus... I would add that is a conservative guess...

[pvande55]

As good a guess as any. They might go up a bit more once the City raises taxes to almost match the suburbs.

[Bluefox]

Originally Posted by pvande55

As good a guess as any. They might go up a bit more once the City raises taxes to almost match the suburbs.

Maybe, but if it's just going to doing damage control for the fiscal mess created, it may depress home values. What is the tangible benefit to the taxpayers? Increased public services, etc? If nothing changes, I imagine it will have a depressing effect on demand overall especially if people aren't getting any benefits from it such as good schools. Rents will probably go up, however. That's part of the reason why I think Chicagoland is considered a "bargain" compared to some other metros. Sure it is, until you get your tax bill.

Property Tax Hikes Hurt Home Values and Drive Up Rental Costs : Research : Platte Institute

ETA: Oops, never mind, you were talking about the suburbs, not the city.

Yes, if taxes go up in Chicago, it may actually accelerate home value appreciation in the suburbs.

[OccidentExpress]

The bubble will continue to inflate unless legislation is passed that forces banks to tighten lending restrictions, which are still too lax and getting looser every day. There might not be another subprime meltdown, but the housing cost/property tax squeeze in Chicagoland isn't sustainable in the long term.

[mr roboto]

I hadn't heard that lending was getting loose again.

[flamadiddle]

Not cook county, but it's damn near impossible to find a home in St. Charles that isn't selling for less than what the current owner paid. Hard to believe so many are willing to take a $100K+ hit? Maybe it's a good time to buy or maybe the downward trend will continue due to the never ending property tax increases?

[ToriaT]

Home prices will inch upward gradually. They have already rebounded. If you are seeing what you are describing in St. Charles, its probable that the people have not owned the house for that long or bought at the top of the market. I am selling my home in Wheaton and will get approximately fifty thousand dollars or more than I paid for it but that was fifteen years ago.

[wjj]

Originally Posted by ToriaT

Home prices will inch upward gradually. They have already rebounded. If you are seeing what you are describing in St. Charles, its probable that the people have not owned the house for that long or bought at the top of the market. I am selling my home in Wheaton and will get approximately fifty thousand dollars or more than I paid for it but that was fifteen years ago.

I think that the recovery has been very lumpy where some areas have mostly recovered and others are still in the tank. I read that in Buffalo Grove, prices are about where they were in 2003. I know for my house, that is correct. When my dad died in 2008 I had to do a valuation of the house in BG at that time for estate purposes. That model house is selling for about 25% less now than what it would have in 2008 assuming it was updated. In the case of the Lake County side of BG, even though Stevenson HS is a huge draw, the real estate taxes are insane. I think people have figured out they can pay more for a house but save a lot in RE taxes and move to Northbrook and still get great schools, and come out ahead financially.

The high end homes in BG have been killed. A house just down the road from me was sold new in 2006 for $1.1mil and recently sold for about $650K. And it was not a foreclosure or short sale. Now, I always thought it was crazy to build homes that expensive in BG. It is just not that kind of place. If you want a huge house and want to spend a million, go a mile west and buy in Long Grove.

Real estate taxes are a huge drag in BG. Insane would be a better word. And at least in my case, 75% goes to various school districts and their pension plans. It's too bad. It was not always like that.

[pvande55]

Originally Posted by OccidentExpress

The bubble will continue to inflate unless legislation is passed that forces banks to tighten lending restrictions, which are still too lax and getting looser every day. There might not be another subprime meltdown, but the housing cost/property tax squeeze in Chicagoland isn't sustainable in the long term.

Wait, is that a post from 2008? Lending standards have gotten too restrictive.