2020 c-Virus Home Market values - Darien IL (sale, real estate market)

[Still Seeking]

For anyone who has had experience of home value changes during the Great Recession in 07', how long and how much -- did properties in Darien Il. fall in value? I had the misfortune of buying a nice brick ranch in Darien in late 2018/early 2019. I poured $100K in improvements to the home. It's almost ready to sell and then the C-virus arrived. I am reeling in my horrible timing. I'm not looking to make a profit, and I know that NO one recoups anywhere near the cost of their improvements. Anyone have any thoughts on RE prices for the near future? I will not consider renting it out. I fear I might be waiting another 10-20 yrs to sell.

[RJA29]

Originally Posted by Still Seeking

For anyone who has had experience of home value changes during the Great Recession in 07', how long and how much -- did properties in Darien Il. fall in value? I had the misfortune of buying a nice brick ranch in Darien in late 2018/early 2019. I poured $100K in improvements to the home. It's almost ready to sell and then the C-virus arrived. I am reeling in my horrible timing. I'm not looking to make a profit, and I know that NO one recoups anywhere near the cost of their improvements. Anyone have any thoughts on RE prices for the near future? I will not consider renting it out. I fear I might be waiting another 10-20 yrs to sell.

Anyone who claims they understand what is going to happen is simply guessing. Would it hurt to put the home on the market at the price you want and see what happens? If you don't need to sell, why could you not list and see what the market is really like? That is the only way to know for sure.

That said, it appears that those who HAVE to sell and have been on the market already might be willing to discount to the levels that would have sold previously (perhaps this is fear, maybe it's timing, and it is surely anecdotal on my part).

There are a few homes that went on the market since the stay at home order and promptly went under contract. If you price right, you'll sell.

[Caglee]

We sold a house recently (before the virus hit) in the western burbs that we purchased several years ago to move closer in to the city. We took a bath, and that house was the single biggest financial disaster of my life.

Nothing at all makes sense in the RE market right now, all you can do is dip your toes in and see if it's nice enough to jump in. Just hope you're not being pushed.

[RamenAddict]

I am browsing in the area and it seems like homes are still going under contract. It doesn’t seem like it could hurt to list and see what happens. If you don’t get any offers, you can always take it off the market and try again later.

[fusillirob1983]

Originally Posted by RJA29

Anyone who claims they understand what is going to happen is simply guessing. Would it hurt to put the home on the market at the price you want and see what happens? If you don't need to sell, why could you not list and see what the market is really like? That is the only way to know for sure.

That said, it appears that those who HAVE to sell and have been on the market already might be willing to discount to the levels that would have sold previously (perhaps this is fear, maybe it's timing, and it is surely anecdotal on my part).

There are a few homes that went on the market since the stay at home order and promptly went under contract. If you price right, you'll sell.

I browse occasionally on the off chance a deal pops up and I want to upgrade, though I may be a year or two off from that. At any rate, over the last couple weeks I'm not seeing properties get sold much less than I would've expected outside of a pandemic. There's just a lower supply than the last 4 years.

[RJA29]

Originally Posted by fusillirob1983

I browse occasionally on the off chance a deal pops up and I want to upgrade, though I may be a year or two off from that. At any rate, over the last couple weeks I'm not seeing properties get sold much less than I would've expected outside of a pandemic. There's just a lower supply than the last 4 years.

Yes - I think you are correct. Listings are way down, and people are not likely to purchase due to uncertainty. However, if the right property came up at a price I know I can deal with for the next ~15 years, I would not hesitate to buy.

There are many unknown risks, and the supply risk is certainly a problem -- both from the purchasing and selling standpoints.

I think if OP needs to sell, they list at a price that is aggressive but reasonable. If they do not need to sell, they can list, or just sit on the property.

Agreed w/ @fusillirob1983 that the spring season is dead in its tracks right now.

[mwj119]

Originally Posted by RJA29

Anyone who claims they understand what is going to happen is simply guessing. Would it hurt to put the home on the market at the price you want and see what happens? If you don't need to sell, why could you not list and see what the market is really like? That is the only way to know for sure.

That said, it appears that those who HAVE to sell and have been on the market already might be willing to discount to the levels that would have sold previously (perhaps this is fear, maybe it's timing, and it is surely anecdotal on my part).

There are a few homes that went on the market since the stay at home order and promptly went under contract. If you price right, you'll sell.

I think it does. Buyers look at previous listing values and dates when reviewing homes. Large decreases in values or prolonged time on the market/going on and off the market is seen as a red flag, no?

[RJA29]

Originally Posted by mwj119

I think it does. Buyers look at previous listing values and dates when reviewing homes. Large decreases in values or prolonged time on the market/going on and off the market is seen as a red flag, no?

That is a good point - that putting it on the market now could hurt. However, as no one really has an understanding the situation of housing in the age of coronavirus, I don't know if it will matter that much. A quick on the market and off again won't hurt as much as a series of price drops. Pretty easy to explain away "we took it off the market due to coronavirus."

All that said - OP, there is only one way to find out. Call some realtors, get opinions, do market research. It's too soon to know if the virus will affect things materially.

[chet everett]

I was posting multiple times per day during the worst of the 2008 housing melt down and I had many former clients that were in absolutely "hair on fire" panic mode. The folks with highly leveraged homes were really facing some terrible situations.


For many in even the most desirable suburbs there were dramatic shifts in value as neighboring homes went into foreclosure. What I said then was basically "don't focus too much on the folks getting 'wiped out' as long as the folks buying the 'bargains' have a timeline that is realistic prices will stabilize". And that mostly happened.


That said Illinois has some of the most dysfunctional fiscal issues of any state in the nation, the continued neglect of addressing fundamental issues about budgets that increasingly transfer unconscionable levels of unfunded pension liabilities into "the future" puts more and more pressure on every tax payer in Illinois -- this really depresses the value of homes especially in areas that do not have any notable "draw" to attract the sorts of affluent buyers that have lots of choices...


I have a pretty good handle on prices in Darien and the surrounding areas; for most buyers the trade-offs of a broad range of towns with similar characteristics is what is going to factor into their decision to buy -- depending on where families work / have relatives towns like Darien will be cross-shopped with towns in a relatively wide area, basic economics tells that the more "alternative products" exist the more variable prices will be...



The facts about "market dynamics" in the residential real estate market are pretty well understood -- buyers like to shop when they have confidence in their own financial situation, when rates are low and somewhat stable, when it is easy to deal with scheduling viewing and planning for their move. Currently few of those things are in place; I would not recommend having one's home on the market unless you are not living in it...


As to when might be a better time to consider listing that is going to depend on a few factors that are not at all clear. If there is a commitment from Governor Pritzker to have a timeline to resume most business activity there may be a "frenzy" of home buyers trying to get inspections, mortgages, movers, etc... Of course if rates spike / business closures increase / crazy politicians battle over blame and bottomless debt all bets are off.

[Still Seeking]

Many thanks to all who have taken the time to respond. After reading comments and talking to some agents, I will put the sale on hold. The Governor just now extended the "stay - at - home" to May 30. I am not inclined to list it now, even to just test the market. Thankfully, I am not in a desperate situation to sell. I will make my final improvements (which were already started) and re-visit my strategy this Fall. If I had not made so many improvements, I WOULD be inclined to list it. Finally, I hope that all of you can keep your spirits up as best you can. I am so grateful for having these forums on City-Data.com. The amount of knowledge and advice present on this website is a real joy. Keep up your good work and advice to all of us.