Then & Now: Pre vs. Post Recession Suburban Values (Chicago: for sale, how much)

[damba]

Originally Posted by Justabystander

I don't know what you can buy in Oak Brook for $433k, not much, nor in Barrington or Northbrook. I think this must be skewed because there may be fewer high end homes that are selling, or more condominiums. In neighboring Hinsdale, where I live, 433K is, for all practical purposes, the very ground floor for a ranch on the fringes of town. It is just the very high end that is having some trouble selling, and yet the high end teardowns in the SE and NW parts of town continue, and in fact may have accelerated.

You may be unfamiliar with how flat home sales actually are in other suburbs, including parts of Northbrook.
There are some very nice homes sold around that price point.

https://www.zillow.com/homedetails/2.../3343408_zpid/

https://www.zillow.com/homedetails/3.../3342307_zpid/

[Bluefox]

It has everything to do with Illinois and its financial mess. Even NWI home values have blown past pre-recession highs, two years ago in fact, and keep going up. People are overcomplicating it. When you have to pay more in taxes, your overall budget is going to go down.

https://www.chicagotribune.com/subur...730-story.html

[My Kind Of Town]

Originally Posted by Bluefox

It has everything to do with Illinois and its financial mess. Even NWI home values have blown past pre-recession highs, two years ago in fact, and keep going up. People are overcomplicating it. When you have to pay more in taxes, your overall budget is going to go down.

https://www.chicagotribune.com/subur...730-story.html

This is a big reason why we are struggling to move within the area. Hard to beat or come anywhere near the $5k/year we are currently paying in property taxes in Hinsdale. Well that and our 3% fixed 30 year mortgage rate.

[Justabystander]

Originally Posted by damba

You may be unfamiliar with how flat home sales actually are in other suburbs, including parts of Northbrook.
There are some very nice homes sold around that price point.

https://www.zillow.com/homedetails/2.../3343408_zpid/

https://www.zillow.com/homedetails/3.../3342307_zpid/

Those actually are pretty low priced without knowing where they are or what problems they have, Both are outdated ugly, but there is nothing around me that can compete in price with those for sure. They must not be near a train line, and need at least cosmetic work, but wow.

[Hiruko]

Originally Posted by Justabystander

Those actually are pretty low priced without knowing where they are or what problems they have, Both are outdated ugly, but there is nothing around me that can compete in price with those for sure. They must not be near a train line, and need at least cosmetic work, but wow.

The first house is not outdated, and both are pretty typical examples of average North Shore properties. Most homes are not in super-prime locations. Why do you think that the average home is "near a train line" and not in need of "at least cosmetic work"? We are trying to talk about averages here.

[DougStark]

Originally Posted by My Kind Of Town

This is a big reason why we are struggling to move within the area. Hard to beat or come anywhere near the $5k/year we are currently paying in property taxes in Hinsdale. Well that and our 3% fixed 30 year mortgage rate.

Curious why your property tax is so reasonable for Hinsdale (and by Chicagoland standards in general)??

[My Kind Of Town]

Originally Posted by DougStark

Curious why your property tax is so reasonable for Hinsdale (and by Chicagoland standards in general)??

I’ve often wondered the same. Probably because it’s a relatively small house and original construction so the assessment is articificially deflated. I’m certainly not complaining but it’s really difficult to find a property tax rate of 1% of home value anywhere else in the west burbs.

[Logic87]

The article only confirms the trends I have been seeing. I always assumed this was due to the following:

1) The biggest factor being property taxes. Average national property tax rate is around 1.2% while Chicago suburbs can range from 2-3%.

2) A larger portion of late 20 and 30 year olds raising families near the city (especially of white collar backgrounds); therefore, a lower demand for Chicago suburbs compared to the past because in the past when these young families had kids they would move to the suburbs. Today that is not always the case.

3) With more late 20 and 30 year olds raising families near the city, larger portions of lower income families are being pushed out of the city and moving to the suburbs.

However, the article shows that maybe #2 and #3 aren't as big of a factor because the 2007 gains in Chicago appear to be modest aside from a few neighborhoods (i.e West Loop) but it appears on average the gains in Chicago supercede those of the suburbs.

[Myfakeaccountfolks]

Originally Posted by Logic87

The article only confirms the trends I have been seeing. I always assumed this was due to the following:

1) The biggest factor being property taxes. Average national property tax rate is around 1.2% while Chicago suburbs can range from 2-3%.

2) A larger portion of late 20 and 30 year olds raising families near the city (especially of white collar backgrounds); therefore, a lower demand for Chicago suburbs compared to the past because in the past when these young families had kids they would move to the suburbs. Today that is not always the case.

3) With more late 20 and 30 year olds raising families near the city, larger portions of lower income families are being pushed out of the city and moving to the suburbs.

However, the article shows that maybe #2 and #3 aren't as big of a factor because the 2007 gains in Chicago appear to be modest aside from a few neighborhoods (i.e West Loop) but it appears on average the gains in Chicago supercede those of the suburbs.

** It’s property taxes ** I came from the east coast and though prices are less than Boston suburbs, total all in cost is similar when you add in the 2%+ tax. Having said that, we love the north shore and have no plans to move.

[TempesT68]

Originally Posted by My Kind Of Town

I’ve often wondered the same. Probably because it’s a relatively small house and original construction so the assessment is articificially deflated. I’m certainly not complaining but it’s really difficult to find a property tax rate of 1% of home value anywhere else in the west burbs.

Because they have lawyers to fight them year after year.