Chicago Real Estate/Housing - Buy, Sell, or Hold? (for sale, real estate market)

[JL1585]

Hey guys,

I used to live in Chicago and now I live in awful Seattle. I came back to Chicago for a quick trip last weekend to start planning my return back to the city. I randomly showed up at open houses to gauge what the housing market. I was shocked and surprised. These are just my opinions. I checked out condos in Streeterville, South Loop, and Hyde Park. What all three places had in common? Great deals. I'm removed from the market, but I live in Seattle, where housing may be the strongest market in the country at the moment.

Theres a neighborhood in Seattle I can compare to South Loop in several ways. In Seattle a 2br/2ba condo would go for 425-500k in this neighborhood. Chicago South Loop comparable condo would be 300-350k. In my opinion Chicago is a much better city, but c'mon? What gives why is Chicago condo so much cheaper?

Someone help me understand whats going on with real estate in Chicago? Why is it so much cheaper, why haven't prices matured like they have in other cities?

[JL1585]

No one?

[NealIRC]

Originally Posted by JL1585

Theres a neighborhood in Seattle I can compare to South Loop in several ways. In Seattle a 2br/2ba condo would go for 425-500k in this neighborhood. Chicago South Loop comparable condo would be 300-350k. In my opinion Chicago is a much better city, but c'mon? What gives why is Chicago condo so much cheaper?

Someone help me understand whats going on with real estate in Chicago? Why is it so much cheaper, why haven't prices matured like they have in other cities?

Let's take Al Capone's home, for example. Right now, it is in a Black neighborhood in the South side.

In 2008, the house went for sale at $450,000. It is a 2-flat. (Around 2452 square feet I think.).

It was recently at $300,000 and now down to $225,000.

The person who lives there is a 77 year-old woman who lived their for 51 years, since 1963. Al Capone lived there in 1923 till 1931, which was when he went to prison, but his mother continued to live in the house until her death in 1952.

Property can be pretty cheap in Black neighborhoods. The address is 7244 S. Prairie (about 3 blocks east of the Dan Ryan).

[rzzzz]

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[seapony]

As a prospective Chicago resident, I'm also curious about the Chicago real estate market. As noted by the OP, prices seem very reasonable for what you get. My research also suggests real estate is not selling very quickly right now. How much do you guys think the recession has impacted the current market?

[Vlajos]

The recession slammed the market here. It has recovered lately. In the city, I believe there is about 4 months of supply on the market, which is low. As with real estate almost anywhere, location matters.

Here's a market snapshot.

http://www.illinoisrealtor.org/sites...-Chicago_4.pdf

[JL1585]

Thanks Vlajos! Good read...

Anybody else want to contribute?

[tjasse]

It's pretty much textbook supply and demand in both places.

Seattle is the #1 job market in the country, and is #12 for high earners.
Chicago is something like #120 job market and #100 for high earners.
Chicago also has massive suburban sprawl in 3 directions, and a huge supply of units within the city. Seattle is much more geographically constrained.

[Anne C M]

The market in the neighborhoods where I work is crazy right now. There is not nearly enough inventory. Places are receiving multiple offers and selling in less than a week. It's tough out there for buyers.

Hopefully as we move into spring more people will list and the market will balance a bit. The inventory is drastically needed.

It's a fantastic time to sell and a difficult time to buy. [this was NOT the case in november, when you originally asked. we had a very quiet fall]

[jonnynonos]

The South Loop is much more accessible than the majority of other transplant neighborhoods.

You are likely comparing apples and oranges to the Seattle neighborhood.