It's really hard to find a house in Hinsdale! (Chicago: sales, neighborhoods)

[JJski]

I strongly believe a higher percentage would take a short walkable train/town core western springs/la grange location (still awesome schoools) over a further out hinsdale home where you need to drive to get into town or to train for work commute. Speaking at the 1m budget...

I would avoid oakbrook burr ridge - they are not in the same league when considering all elements, more than just schools...

When we searched we took each town core and drew a .5m radius for that micro area - also putting us in desirable historic districts...

[My Kind Of Town]

Originally Posted by chet everett

I am probably one of the strongest advocates for folks that relocate to the broader Chicago region with school-aged kids given serious thought to the most desirable school districts and I fully agree that any home in D181 will be an excellent situation from both the educational needs of kids of school age and a smart financial move for their parents.

That said, I also think that LK's point about finding a community that makes sense for your situation is excellent, though given the horrendous fiscal issues of Illinois it is important to understand that "future values" are almost certainly going to see some horrendous headwinds -- it is not just that the corrupt practices of Illinois political insiders have made pensions into a ticking time bomb, it is that the very foundation of public financing of education in Illinois is really on the precipice of disaster. Despite solid property values in nice towns like those served by D181 the majority of Illinois schools are thisclose to financial ruin and the power-brokers preferred methods of addressing these problems will NOT be friendly to folks in affluent areas -- it will result in more money being shifted from local resources and into the coffers controlled by the long time power hungry tyrants. The way I see things playing out it is frankly foolhardy to think that you'll have any shot at all of parlaying a costly home into a "custom dream home" down the road in 3-5 years unless you have wealth of the kind only associated massive stock grants -- Google chief’s pay tops $100M in first year | New York Post


The relative drop in value that I expect to be a widespread result of the needs to boost revenues controlled by Illinois corrupt political power brokers may actually be less profound in towns with a wider range of home prices -- that would include the still very desirable towns like LaGrange and Western Springs. The fact is BNSF travel from those towns is even speedier than from Hinsdale. Of course there is not exactly of surplus of ready to move in 5Br homes in either of those towns even for folks with a $1M++ budget...

A pull back in local real estate prices over the next few years is not necessarily a bad thing for the OP even if they buy now (or any others looking to move up to a larger more expensive home in the near future). In fact, for move up buyers a pull back is a financial BENEFIT assuming they have enough cash for a down payment on the future purchase and they stay in the same market. Consider the following example:

1. BUY $1,000,000 home in 2016
2. Market depreciates by 15% over the next 5 years
3. SELL home purchased in 2016 for $850,000 ($150,000 loss) in 2021 but at the same time BUY a larger more expensive home for $1,700,000 (which would have cost $2,000,000 in 2016).

So the buyer lost $150k on the first purchase but SAVED $300k on the next purchase (net $150k gain). Looks like a win-win assuming the buyer has enough cash for the down payment on the second purchase.

[My Kind Of Town]

And, yes, it is hard to find a decent 5 bedroom home in Hinsdale for around $1M, which is why I am considering adding on to my current residence rather than moving (I'd be content with 4 bedrooms). As mentioned above, for me, it depends on how the market performs over the next few years. If real estate prices continue climbing, it's a slam dank to pull out some equity through a home equity loan at a fixed rate (which are still very low) to cover the expansion/reno costs. If real estate prices decline significantly, I would likely sell and move to a larger more expensive home that would otherwise be priced above my current budget but more affordable with a drop in prices. I already have a sizeable amount of equity built up and decent cash savings so I am not overly concerned about the future down payment if we were to move.

[NOLA101]

Hinsdale is one of the most expensive towns in Chicagoland. It's probably the most expensive area, excepting Gold Coast/Lincoln Park and the very best parts of Winnetka/Kenilworth/Glencoe. So obviously you aren't going to get a ton of product.

$1.2 million means you have a bigger budget than the VAST majority of people, but you still aren't going to get something in perfect condition/size/location for a five bedroom at that price. You are looking at the top 1% of areas, and then looking for a somewhat unusual type of house within that area.

Luckily, with such a big budget, you can go to a somewhat cheaper suburb and have your pick of almost everything. But in Hinsdale you'll probably need to compromise.

[chet everett]

Originally Posted by My Kind Of Town

A pull back in local real estate prices over the next few years is not necessarily a bad thing for the OP even if they buy now (or any others looking to move up to a larger more expensive home in the near future). In fact, for move up buyers a pull back is a financial BENEFIT assuming they have enough cash for a down payment on the future purchase and they stay in the same market. Consider the following example:

1. BUY $1,000,000 home in 2016
2. Market depreciates by 15% over the next 5 years
3. SELL home purchased in 2016 for $850,000 ($150,000 loss) in 2021 but at the same time BUY a larger more expensive home for $1,700,000 (which would have cost $2,000,000 in 2016).

So the buyer lost $150k on the first purchase but SAVED $300k on the next purchase (net $150k gain). Looks like a win-win assuming the buyer has enough cash for the down payment on the second purchase.

If you had any experience with folks that were underwater as recently as 5 or so years ago you might understand that buyers are responsible for the amount of the mortgage they took out -- one does not merely lose their down payment when the value of their home falls, one must also cover the indebtedness they incurred on the mortgage if they want to purchase another home. Even if the lender agrees to a short sale the seller would likely not be allowed to finance a replacement home regardless of how much cash they managed to hide from the lender swallowing the short sale...

It makes much sense for anyone in the OP's situation to focus on home that will serve their longer term needs regardless of market fluctuations.

[My Kind Of Town]

Originally Posted by chet everett

If you had any experience with folks that were underwater as recently as 5 or so years ago you might understand that buyers are responsible for the amount of the mortgage they took out -- one does not merely lose their down payment when the value of their home falls, one must also cover the indebtedness they incurred on the mortgage if they want to purchase another home. Even if the lender agrees to a short sale the seller would likely not be allowed to finance a replacement home regardless of how much cash they managed to hide from the lender swallowing the short sale...

It makes much sense for anyone in the OP's situation to focus on home that will serve their longer term needs regardless of market fluctuations.

Assuming the OP makes a min 20% down payment on the first purchase, there is no need for a short sale and they would not be underwater unless real estate prices drop more than 20% from current levels. Considering this market hasn't experienced the same big comeback (some say bubble) as other markets throughout the country, I highly doubt it drops more than 20% over the next few years unless the country falls into another great recession/depression.

You are using a once-a-generation collapse as the basis for disputing my example. I'll take the odds that we don't experience that same type of collapse over the next few years over the odds we do.

I should add it sounds like the OP has a sizeable sum of cash available for this and any future purchase based on their previous posts so I am assuming the down payment conditions I outlined are valid. There are cases where a down payment of less than 20% makes sense, but generally this only exposes one to higher risk (if real estate prices drop), higher interest rates, and PMI so it's typically not advisable.

[tolovefromANFIELD]

I can't believe that OP "can't find" a house in market that currently has a staggering 2.5 year supply of homes for sale!

How is the real estate market doing in Hinsdale, IL - Team Bowers Realtors

[My Kind Of Town]

Originally Posted by tolovefromANFIELD

I can't believe that OP "can't find" a house in market that currently has a staggering 2.5 year supply of homes for sale!

How is the real estate market doing in Hinsdale, IL - Team Bowers Realtors

Hard to view this as a credible source when it states sold prices have appreciated by 31% in the past year in Hinsdale.

[chet everett]

Respecctfully, as someone active in real estate for over three decades, I have never seen a listing in Hinsdale from "Bowers Realty", which apparently is located in Plainfield, a rather different market.

I might suggest a wee grain salt for their conclusions --

[tolovefromANFIELD]

Originally Posted by chet everett

Respecctfully, as someone active in real estate for over three decades, I have never seen a listing in Hinsdale from "Bowers Realty", which apparently is located in Plainfield, a rather different market.

I might suggest a wee grain salt for their conclusions --

What conclusions? What are you talking about? And, why does it matter that this real estate company is located in Plainfield, or that they have never listed a property in Hinsdale?

They do this report for every single suburb in Chicagoland. I presume they go into the MLS (that every realtor has access to), and perform 1st grade arithmetic (divide homes on the market by homes sold in any given month) and voila, they come up with their "conclusion" of 29.5 months of supply. Or, is that in your case, and your holly towns of Hinsdale, and Clarendon Hills, principles of Economics and Mathematics do not apply?