Why did the Chicago residential real estate market slow down sooner in Chicago? (Warren: foreclosures, rental)

[ITChick]

Originally Posted by 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.

Just to let you know, Section 8 will be wherever there is a Landlord that will take it. All the suburbs have some, it's just more concentrated in some areas then in others.

[Humboldt1]

IT Chick,

I know all about sec8 housing as I have owned an apartment biulding in humboldt park for two years and am looking at buying more. When I evicted my original tenants I was advised to go Sec8 by the police and sherriff as they were forcefully evicting my former tenants who hadn't paid rent in 4 months (I inherited them with the building as wasn't able to do background searches as I do with current tenants.

My point is with Sec8 we are simply replicating the projects and all there problems in the burbs. Just look at what has happened to Hanover Park and Schaumburg along Barrington Road just north of Irving.

Bucktown Dale,

I have a background in economics and now am a commercial banker. Our economists are seeing bottom late spring to mid summer but this was downwardly revised from their Dec 07 report in which the economists saw bottom in early 09.

Of course all the realtors I work with insist it is a buyer's market and now is the time to buy. Unless you are going to miss out on the house or deal of a lifetime wait a year. That is what I am doing. I have seen price declines in Bucktown and expect (my predicction) May 09 to see bottom and get back to buying, looking to purchase JulyAug 09. If you do 2-4 brick units in bucktown area 400-700m feel free to DM me.

[aragx6]

I've seen price drops starting to happen as well. In Wicker park there are several 2/2s on the market for the same price as 1/1s... it doesn't take a rocket scientist to figure out which units are going to sell.

[ITChick]

Originally Posted by Humboldt1

IT Chick,
I know all about sec8 housing as I have owned an apartment biulding in humboldt park for two years and am looking at buying more. When I evicted my original tenants I was advised to go Sec8 by the police and sherriff as they were forcefully evicting my former tenants who hadn't paid rent in 4 months (I inherited them with the building as wasn't able to do background searches as I do with current tenants.

My point is with Sec8 we are simply replicating the projects and all there problems in the burbs. Just look at what has happened to Hanover Park and Schaumburg along Barrington Road just north of Irving.

I guess that was my point as well, as you cannot be certain anywhere anymore that you will not come across Section 8 tenants. I come from a family of rental property owners and I could go on for days with stories on some of the Section 8 renters. I don't know what methods are used by Section 8 to screen their clients, but some of them, hopefully not all, can become a bit of a headache. Since the Feds prefer scattered site housing and Section 8 vouchers to Housing Projects, I don't think that this problem will change much in the near future, especially for big cities like Chicago and it's surrounding Suburbs.

[Avengerfire]

Originally Posted by ITChick

I guess that was my point as well, as you cannot be certain anywhere anymore that you will not come across Section 8 tenants. I come from a family of rental property owners and I could go on for days with stories on some of the Section 8 renters. I don't know what methods are used by Section 8 to screen their clients, but some of them, hopefully not all, can become a bit of a headache. Since the Feds prefer scattered site housing and Section 8 vouchers to Housing Projects, I don't think that this problem will change much in the near future, especially for big cities like Chicago and it's surrounding Suburbs.

Many Sec. 8 holders used to live in the projects. This was not the case 10 years ago of course.

[Thepreacherswife]

For those of you wanting to sell, the City Council is about to sock you with the $3 per $1000 increase in the city transfer tax that was approved as part of the CTA bailout.

Chicago real-estate transfer tax increase would extend to sellers under City Council proposal -- chicagotribune.com

Having just purchased a place last month and paid the current $7.50 per $1000, I feel for you, but not that much.

[ChiMack]

Home sales in Chicago fell 23 percent and the median price fell 4.5 percent in the third quarter from a year earlier, the Illinois Association of Realtors said Monday.
There were 5,958 existing single-family home and condominium sales in the quarter, down from 7,769. Prices fell to $289,400, from $302,900.
In the Chicago metropolitan area, sales were down 22 percent to 20,449, and prices fell 6.7 percent to $244,900.
Statewide, sales dropped 21.2 percent and prices fell 8.2 percent.
Only 38 of 100 counties in the state saw median home sale price increases. Among them was DuPage, where prices edged up 1.5 percent to $274,125.
"Clearly the housing market is still unsettled," said David Hanna, president of the Chicago Association of Realtors in a statement, adding the industry is looking to the new administration for direction in how to resolve "the overriding economic issues we face."
"The economy has entered a period where consumer sentiment has been buffeted by the sub-prime market problems and the elevation of unemployment rates to levels not seen in a decade or more," said Geoffrey Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. "These two events have resulted in a significant retrenchment in spending, especially on big-ticket items."

[hsw]

Prices need to drop to where creditworthy buyers can afford a house (w/a legitimate mortgage)

Chic NorthShore prices are not materially cheaper than allegedly expensive places like elite SiliconValley suburbs (Woodside) or NYC's Greenwich, which have far more new wealth creation than Chic...new demand bidding for scarce, desirable, buildable land...compare Woodside land costs vs LkForest or Winnetka lakefront land

Would guess Chic prices (like prices everywhere) need to fall much more in a setting of higher unemployment, tighter credit, higher tax rates and falling stock market values...

[Jesse69]

Yeah, when houses next to my Wicker Park house are going for $700,000 +, - yeah, even I couldn't buy my own house!

[analyticalkeys]

Looks like my dream of living in Chicago is coming ever closer to fruition..