Why did the Chicago residential real estate market slow down sooner in Chicago? (Schaumburg: section 8, sale)

[Drover]

Originally Posted by Lookout Kid

I'm kind of scared of this... I know most of the pent up inventory is downtown, but if there is a firesale it would have a ripple effect through the neighborhoods.

It's already starting to have an effect. I have a friend who's trying to sell her condo in Printer's Row. It's all she can do to get an offer that matches what she paid for it 4 years ago, which if you adjust for inflation, would be a real-term loss. She reckons the number of units in her neighborhood has increased by hundreds in just the few years since she bought her unit.

[Avengerfire]

Originally Posted by Drover

It's already starting to have an effect. I have a friend who's trying to sell her condo in Printer's Row. It's all she can do to get an offer that matches what she paid for it 4 years ago, which if you adjust for inflation, would be a real-term loss. She reckons the number of units in her neighborhood has increased by hundreds in just the few years since she bought her unit.

And Daley is still creating TIF's for more. What a fricken clown he is.

[dinandriver]

I'm also going to be in the market for an apartment building in a few months. I'm looking at higher cap rate areas in Chicago such as Austin, West Shore and Chattam. Does anyone have an opinion one way or an other on these areas? I'm also open to suggestions in terms of other areas.

[Humboldt1]

I looked at Austin last year for an apartment. Taxes are low and properties appear to cashflow but you don't want to own there unless you like s 8 or have a HUD contract. A good buddy of mine has an 80 unit in west garfield park, but he has a HUD contract. He is italian and describes his tenants as animals. You will find the same riff raff in most of austin.

Chattam is a neighborhood experiencing a steady decline as aformentioned riff raff are spreading like a disease into the south suburbs. Chattam to me looks like a poor replica of schaumburg that never out of the 80s.

Schaumburg isn't what it used to be either as there are sec8 projects as you approach streamwood and hanover park and some parts of hoffman estates.

I don't know the west shore area but am sure other posters do.

[Lookout Kid]

Originally Posted by Avengerfire

I cant wait. I am going to jump on it. It is all timing...

Good luck. You can never time these things correctly. There was real estate expert on the Today Show this morning saying that the markets in Boston and Chicago has already "bottomed out", and that "prices go up much faster than people think" after slowdowns. She could be totally wrong, but by the time you realize the slump is over you'll already be paying $40,000 more for that condo.

[aragx6]

I agree Lookout kid- you never can know. I too am close to that same boat as others here are and have been looking at prices in Wicker Park/Bucktown religiously as they come on the market. They have definitely dropped for some and not for others, and some of the new rehabs have been sitting on the market for a year plus now. I have seen a few move and they've been one's priced real low.

From what I can tell they are still dropping and there's lots on the market there. I think I'd rather buy when it's slightly on the upswing again though as opposed to buying too early. It's hard to say!

[Avengerfire]

Originally Posted by Humboldt1

Avengerfire,

We should definitely compare notes as we both look at condos for firesale prices.

Feel free to DM me.

[Humboldt1]

Avengerfire,

I will definitely compare notes with you regarding upcoming properties for sale.

Others,

When do you see this market bottoming out? That "expert" on NBC 5 that was mentioned on this forum talking about how the market had already bottomed is overly optimistic in my opinion, especially in leu of all the negative data that came out today on the economy.

I am sticking with my prediction of Chicago market bottoming out Spring 2009, though it could be summer 2009. Nationally, I am not sure when things are going to bottom out and frankly don't care as my real estate is all in Chicago and suburbs and I am not looking outside of this market for future investments.

[aragx6]

Originally Posted by Humboldt1

I am sticking with my prediction of Chicago market bottoming out Spring 2009

This is my predic as well. We shall see!

[BucktownDale]

I would also like to say hello as this is my first post as well. For disclosure, I am a Chicago real estate agent, and my observation of the Chicago market is that prices here got ahead of themselves, especially on the North side and Loop area, faster than in other parts of the nation. Therefore, I believe people started pulling back sooner as well. Hopefully this will translate into an earlier recovery here as well, but I am no economist, just using common sense. Hope this helps.