U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Illinois > Chicago Suburbs
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 12-16-2016, 02:50 PM
 
335 posts, read 236,876 times
Reputation: 258

Advertisements

Lol. Trouble isn't that the fed hiked a quarter point. That has next to nothing to do with mortgage rates. Treasury yields have everything to do with it, however. And yields on 10 year treasuries haven't just gone up a quarter point. They've gone up a full point since the end of September. And if they go up another point (some investors are saying they can go all the way to 6%, currently 2.6%), all of a sudden the little $25 these fools are trying to sell the sheep on is more like $300/month...which means you are paying 40% more for the same house.

Will that impact millionaires? No... but that article Irishillini posted speaks about home prices at 200k.
Also, those predictions in that article are from ZILLOW.

 
Old 12-16-2016, 02:56 PM
 
335 posts, read 236,876 times
Reputation: 258
Quote:
Originally Posted by My Kind Of Town View Post
Also, you can't just point to property taxes and say see look nobody can afford these taxes so the home price will never rise or the home won't sell. Explain to me then why homes like this sell:

https://www.redfin.com/IL/Hinsdale/2.../home/18019866

https://www.redfin.com/IL/Hinsdale/1.../home/18019854

There are countless homes in my area with property tax bills exceeding $18k and yet home prices continue to rise...
Who said nobody can afford it or homes will NEVER sell? I didn't say that... the average person or someone buying a home in the 6-700k range probably isn't going to be ok with it. The taxes on that first house are 40k... that's a whole different level of income.

Last edited by Taco1234; 12-16-2016 at 03:31 PM..
 
Old 12-16-2016, 02:58 PM
 
335 posts, read 236,876 times
Reputation: 258
Quote:
Originally Posted by IrishIllini View Post
It's set to rise several more times in 2017... this was the first. You really think that won't impact home sales and affordability?
 
Old 12-16-2016, 03:07 PM
 
10,564 posts, read 13,135,345 times
Reputation: 6361
Quote:
Originally Posted by Taco1234 View Post
Lol. Trouble isn't that the fed hiked a quarter point. That has next to nothing to do with mortgage rates. Treasury yields have everything to do with it, however. And yields on 10 year treasuries haven't just gone up a quarter point. They've gone up a full point since the end of September. And if they go up another point (some investors are saying they can go all the way to 6%, currently 2.6%), all of a sudden the little $25 these fools are trying to sell the sheep on is more like $300/month...which means you are paying 40% more for the same house.

Will that impact millionaires? No... but that article Irishillini posted speaks about home prices at 200k.
Also, those predictions in that article are from ZILLOW.
Rates are likely to skyrocket under Trump if he follows through with his tax cuts and massive spending program. If you are a large debtor, inflation is good. So clearly Trump wants much higher inflation.
 
Old 12-16-2016, 03:28 PM
 
1,851 posts, read 1,482,140 times
Reputation: 1283
Quote:
Originally Posted by Vlajos View Post
Rates are likely to skyrocket under Trump if he follows through with his tax cuts and massive spending program. If you are a large debtor, inflation is good. So clearly Trump wants much higher inflation.
Exactly.

A bit off topic, but the rumors are Trump won't sell his businesses because it wouldn't cover his debts.
 
Old 12-16-2016, 03:28 PM
 
335 posts, read 236,876 times
Reputation: 258
Quote:
Originally Posted by My Kind Of Town View Post
I find it VERY hard to believe that the price of a home in Lombard has plummeted between 2013/2014 and now. Please provide specific links of examples. I am seeing quite the opposite. In fact, as whole, it appears Lombard is up ~10% since the end of 2013. Also, looking at your past posts you bought the home and then sold it a year later because of concerns regarding the schools. Why would anyone buy a home and then dump it in such a short timeframe? That makes no sense from a financial standpoint unless you were relocated to a different city for bigger/better position. It's not like the schools suddenly dropped in performance in the matter of 1 year, you had to know the schools weren't so hot before you purchased the home correct?
When we sold the home the news about Illinois started to become extremely disconcerting. We never intended to be there long term. The grade school was the best one in Lombard. There seemed to be a small period of recovery about a year after we bought it and we saw a few listings that surprised us (in price). We listed it for a good amount more than we had purchased it for and decided to just see what would happen. Ended up getting a few offers and went for it as we knew we wanted to rent and see what would happen in Illinois for a year or 2 after that.

as far as towns as a whole, I never look at that. I look at individual homes. Otherwise, that takes into account flips (which of course sold for much lower and then listed/sold higher as they were renovated) and new construction or teardowns. Again, those will reflect huge gains and I assume when you see overall numbers for a town it's going to add in those large gains from flips even though it's not really a fair comparison. Take these for example:

Originally sold for over 600K
1151 S Fairfield Ave, Lombard, IL 60148 - realtor.com®

310 W Morris Ave, Lombard, IL 60148 | Zillow

105 N Elizabeth St, Lombard, IL 60148 | Zillow

806 S La Londe Ave, Lombard, IL 60148 | Zillow

or my personal favorite that someone on here even cited as a "great buy":
510 S Lodge Ln, Lombard, IL 60148 | MLS #09386532 | Zillow

That one was listed when we first listed our house. So it's been on market since at least fall of 2014 (although listing doesn't show it back that far). I believe it was originally listed at 475K...
 
Old 12-16-2016, 04:18 PM
 
972 posts, read 788,049 times
Reputation: 622
Quote:
Originally Posted by Taco1234 View Post
Who said nobody can afford it or homes will NEVER sell? I didn't say that... the average person or someone buying a home in the 6-700k range probably isn't going to be ok with it. The taxes on that first house are 40k... that's a whole different level of income.
You said as much in your example of the preschool director attempting but unable to sell their home in La Grange by leading with a discussion of excessive property taxes and then stating that the taxes for that home are $18k. Is it possible that the listing price is too high and that's the reason it's not selling? That's a more common reason for a home to sit on the market for an extended duration than a few extra thousand per year in taxes. Again, high property taxes appear on a multitude of homes in Hinsdale and yet has not deterred buyers while prices continue to rise. Same thing can be said for Western Springs, Glen Ellyn, La Grange, etc. But if the home is overlisted then it's going to sit regardless of property taxes.
 
Old 12-16-2016, 04:32 PM
 
972 posts, read 788,049 times
Reputation: 622
Quote:
Originally Posted by Taco1234 View Post
When we sold the home the news about Illinois started to become extremely disconcerting. We never intended to be there long term. The grade school was the best one in Lombard. There seemed to be a small period of recovery about a year after we bought it and we saw a few listings that surprised us (in price). We listed it for a good amount more than we had purchased it for and decided to just see what would happen. Ended up getting a few offers and went for it as we knew we wanted to rent and see what would happen in Illinois for a year or 2 after that.

as far as towns as a whole, I never look at that. I look at individual homes. Otherwise, that takes into account flips (which of course sold for much lower and then listed/sold higher as they were renovated) and new construction or teardowns. Again, those will reflect huge gains and I assume when you see overall numbers for a town it's going to add in those large gains from flips even though it's not really a fair comparison. Take these for example:

Originally sold for over 600K
1151 S Fairfield Ave, Lombard, IL 60148 - realtor.com®

310 W Morris Ave, Lombard, IL 60148 | Zillow

105 N Elizabeth St, Lombard, IL 60148 | Zillow

806 S La Londe Ave, Lombard, IL 60148 | Zillow

or my personal favorite that someone on here even cited as a "great buy":
510 S Lodge Ln, Lombard, IL 60148 | MLS #09386532 | Zillow

That one was listed when we first listed our house. So it's been on market since at least fall of 2014 (although listing doesn't show it back that far). I believe it was originally listed at 475K...
Your first 4 examples are comparing bubble prices (aka 2004-2007 timeframe) to current prices. That's not what you were disputing. You said prices have plummeted between the time you sold (2013/2014) and now so you got out at a good time. Show me examples of homes that sold in 2013/2014 that are now selling for less. Hint, hint, you won't be able to find any unless there is an extenuating circumstance with the current list (i.e. short sale or foreclosure). Fact is, you guys sold early, the Chicagoland market has continued to rise in price since the time you sold, and you could have sold ~10% higher by waiting a couple years. Not to mention the other benefits such as equity building and tax write-offs associated with owning vs. renting. To argue differently, is simply "denial" on your part.

Also, if you were in the best grade school district in Lombard why were you worried about its performance? It looks pretty darn good to me! Sounds like your kids are younger too so I'm not sure why you would be in such a panic to find a district with top performing middle and high schools.

https://www.schooldigger.com/go/IL/d...60/search.aspx
 
Old 12-16-2016, 05:03 PM
 
335 posts, read 236,876 times
Reputation: 258
Quote:
Originally Posted by My Kind Of Town View Post
You said as much in your example of the preschool director attempting but unable to sell their home in La Grange by leading with a discussion of excessive property taxes and then stating that the taxes for that home are $18k. Is it possible that the listing price is too high and that's the reason it's not selling? That's a more common reason for a home to sit on the market for an extended duration than a few extra thousand per year in taxes. Again, high property taxes appear on a multitude of homes in Hinsdale and yet has not deterred buyers while prices continue to rise. Same thing can be said for Western Springs, Glen Ellyn, La Grange, etc. But if the home is overlisted then it's going to sit regardless of property taxes.
It's a 5 bed/3 bath relatively updated home that is walkable to train and excellent schools listed in low 600's (started higher). Isn't that the whole point? A few years ago it probably would've been snatched up... now that there's never ending bad news and people are more aware that while property taxes are already astronomical they will likely be going even higher.

Again- people spending millions are in a different bracket all together. I'm sure plenty will still buy in Hinsdale and other towns. However, there's clearly a change in how quickly homes are selling and for what price.

When looking up homes that have sold in past 6 months in Hinsdale (for example) I see plenty that have a selling price at a loss or around same that home was purchased for.

https://www.redfin.com/IL/Hinsdale/6.../home/18020954

Or how do you explain this if market is so hot? Purchased 2013 and now selling at same price??
https://www.redfin.com/IL/Hinsdale/7.../home/18021861

Market was low in 2010 when this was purchased. Sold at a 600k loss? Why?
https://www.redfin.com/IL/Hinsdale/1.../home/17282761

400k loss
https://www.redfin.com/IL/Hinsdale/4.../home/17395992

1 million loss!?
https://www.redfin.com/IL/Hinsdale/4.../home/17570568

Sold 1040000 in 2013... just resold at same price. Shouldn't it be worth way more now since Hinsdale is hot and market doing so well?
https://www.redfin.com/IL/Hinsdale/7.../home/18021845
 
Old 12-16-2016, 05:06 PM
 
335 posts, read 236,876 times
Reputation: 258
Quote:
Originally Posted by My Kind Of Town View Post
Your first 4 examples are comparing bubble prices (aka 2004-2007 timeframe) to current prices. That's not what you were disputing. You said prices have plummeted between the time you sold (2013/2014) and now so you got out at a good time. Show me examples of homes that sold in 2013/2014 that are now selling for less. Hint, hint, you won't be able to find any unless there is an extenuating circumstance with the current list (i.e. short sale or foreclosure). Fact is, you guys sold early, the Chicagoland market has continued to rise in price since the time you sold, and you could have sold ~10% higher by waiting a couple years. Not to mention the other benefits such as equity building and tax write-offs associated with owning vs. renting. To argue differently, is simply "denial" on your part.

Also, if you were in the best grade school district in Lombard why were you worried about its performance? It looks pretty darn good to me! Sounds like your kids are younger too so I'm not sure why you would be in such a panic to find a district with top performing middle and high schools.

https://www.schooldigger.com/go/IL/d...60/search.aspx
The high school is horrible... grade school was great. Our reasons were many... we knew illinois was about to take a huge nosedive (as it's proving daily) so we saw an opportunity to escape and make a little money. I will provide examples of price drops.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Closed Thread


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Illinois > Chicago Suburbs
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top