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Old 06-20-2017, 12:59 PM
 
367 posts, read 488,034 times
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I am concerned about the future of real estate values in Illinois. I bought a house in 2003 and the house is probably worth 12% less than what I bought if for. With the budget crisis in Illinois and pension debt mounting is a major concern for me. My question is how long before real estate prices get back to 2007 levels? It seems to me the majority of major cities have recovered with the exception of Chicago.
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Old 06-20-2017, 01:09 PM
 
748 posts, read 833,410 times
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Quote:
Originally Posted by Fighting Fungus View Post
I am concerned about the future of real estate values in Illinois. I bought a house in 2003 and the house is probably worth 12% less than what I bought if for. With the budget crisis in Illinois and pension debt mounting is a major concern for me. My question is how long before real estate prices get back to 2007 levels? It seems to me the majority of major cities have recovered with the exception of Chicago.
Many, many houses that were purchased in 2003 are worth significantly more than they were purchased for at that time.

The Case Shiller index for Chicago on Jan 2003 was 127.22; it is 140.65 now.
https://fred.stlouisfed.org/series/CHXRSA

Additionally, the market, overall, is up: Chicago real estate market trends, data and statistics - home prices, sales

It seems you purchased in an area that was extremely over inflated? Prices are back to '07 levels, on average. Those areas that aren't, might never be back that high.

If you are concerned, and have equity - cash out and get out might be a smart move. Of course, prices could go up more, too.
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Old 06-20-2017, 02:54 PM
 
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I think it depends on where the property is located. Affluent and gentrifying areas have recovered pretty well in Chicago. Poor areas not so much.
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Old 06-20-2017, 02:57 PM
 
768 posts, read 1,104,365 times
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Ours in LG has gone up a lot --- we purchased in late 2013
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Old 06-20-2017, 03:13 PM
 
Location: IL
529 posts, read 647,705 times
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I purchased in 2013 and the value of our home has definitely gone up up up.
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Old 06-20-2017, 03:23 PM
 
215 posts, read 151,626 times
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Taxes have gone up too?!? IL is going to be No #1 highest property taxes, beating NJ probably next year.
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Old 06-20-2017, 03:47 PM
 
335 posts, read 334,413 times
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http://www.chicagobusiness.com/artic...ea-107-billion
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Old 06-21-2017, 07:47 AM
 
748 posts, read 833,410 times
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Originally Posted by spicy_guy View Post
Taxes have gone up too?!? IL is going to be No #1 highest property taxes, beating NJ probably next year.
Property taxes alone don't tell the whole story - it's combined total taxation that matters (and what you get for it, to boot). https://wallethub.com/edu/states-wit...-burden/20494/

IL has high taxes, but not the highest.
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Old 06-21-2017, 07:57 AM
 
Location: Sweet Home Chicago!
6,721 posts, read 6,482,819 times
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Quote:
Originally Posted by RJA29 View Post
Property taxes alone don't tell the whole story - it's combined total taxation that matters (and what you get for it, to boot). https://wallethub.com/edu/states-wit...-burden/20494/

IL has high taxes, but not the highest.
Yep, I could move from the Chicago area to the outskirts of Fairbanks Alaska and say - Hey look everyone, I'm saving some money! and if Fairbanks works for you, more power to you, but it's not the same as living in the Chicago Metro. And if you look at those total tax numbers, there's not much of a swing between the states so you're not saving much by leaving.

OP, no way to tell, no one has a crystal ball. However, for those looking to buy now, there are some pretty good deals in the Chicago area today. Unfortunately you got caught up in the bubble. What the future holds for Illinois is anyone's guess, but I think once the financial mess blows over, things will pick up. As noted in other threads, something has to give since there's no way to pay back all that debt. Raising taxes will not work because it will not even make a dent and raising taxes will just cause more to flee, leaving less of a tax base (catch 22). Some sort of bankruptcy needs to occur, regardless of Illinois law.

Last edited by flamadiddle; 06-21-2017 at 08:13 AM..
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Old 06-21-2017, 09:49 AM
 
335 posts, read 334,413 times
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Quote:
Originally Posted by flamadiddle View Post
Yep, I could move from the Chicago area to the outskirts of Fairbanks Alaska and say - Hey look everyone, I'm saving some money! and if Fairbanks works for you, more power to you, but it's not the same as living in the Chicago Metro. And if you look at those total tax numbers, there's not much of a swing between the states so you're not saving much by leaving.

OP, no way to tell, no one has a crystal ball. However, for those looking to buy now, there are some pretty good deals in the Chicago area today. Unfortunately you got caught up in the bubble. What the future holds for Illinois is anyone's guess, but I think once the financial mess blows over, things will pick up. As noted in other threads, something has to give since there's no way to pay back all that debt. Raising taxes will not work because it will not even make a dent and raising taxes will just cause more to flee, leaving less of a tax base (catch 22). Some sort of bankruptcy needs to occur, regardless of Illinois law.
This isn't just going to "blow over" ....

https://illinoiscomptroller.gov/news.../#.WUqVRIVOmEe
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