Why are homes so overpriced in the Chicago suburbs? (Washington: real estate, 2014)

[ngrome]

Is it just the market these days? When my family moved back to Illinois from Florida over seven years ago, we paid less than $200,000 for our home. I never paid over $200,000 for a home, even in Florida. Homes in the south suburbs that have 3 or more bedrooms and baths with over 2000 sq. ft. are commanding $250,000 at least, realistically probably more like $300,000 to $400,000, such as homes in DuPage County, etc. And obviously up to half a million or more in the more affluent neighborhoods.

But even older homes that are 1500 sq. ft. or less with 2 bedrooms one bath are garnering close to $200,000 if not a little over that, maybe around $180,000 starting. My current home is larger than these homes, with 3 bedrooms 2.5 baths, and as I said costs even less than the smaller homes today.

And people are complaining we pay too much taxes here in Illinois, but with the exodus out of this state, why are the property values not waning but rather they're still climbing? So it may be a seller's market these days but didn't realize the pendulum swung so hard to the other side.

[damba]

You are making the mistake of not looking at the whole picture.

[Berteau]

They are under priced. Why are you comparing Chicago to Florida? You should be comparing it to the coastal cities. Chicago is the 3rd most populated region in the Country. Its like asking why is New York City so "overpriced" compared to Alabama. The question makes no sense.

[Chicago60614]

The "exodus out of state" isn't by people who have jobs and are living in houses that cost hundreds of thousands of dollars in the suburbs.

Maybe your specific memories or houses are different, but there has NOT been a huge appreciation of housing in the chicago area over the past 7-10 years. It might not be what you're expecting, but the values have been fairly flat the past decade.

[mwj119]

Originally Posted by ngrome

Is it just the market these days? When my family moved back to Illinois from Florida over seven years ago, we paid less than $200,000 for our home. I never paid over $200,000 for a home, even in Florida. Homes in the south suburbs that have 3 or more bedrooms and baths with over 2000 sq. ft. are commanding $250,000 at least, realistically probably more like $300,000 to $400,000, such as homes in DuPage County, etc. And obviously up to half a million or more in the more affluent neighborhoods.

But even older homes that are 1500 sq. ft. or less with 2 bedrooms one bath are garnering close to $200,000 if not a little over that, maybe around $180,000 starting. My current home is larger than these homes, with 3 bedrooms 2.5 baths, and as I said costs even less than the smaller homes today.

And people are complaining we pay too much taxes here in Illinois, but with the exodus out of this state, why are the property values not waning but rather they're still climbing? So it may be a seller's market these days but didn't realize the pendulum swung so hard to the other side.

You bought a house in the worst economic crisis since the Great Depression, so comparing today to seven years ago makes very little sense.

Chicago is a Tier 1 MSA- Education, healthcare, culture, big city, public transportation, large GDP. You are saying that $250k is overpriced!? Man... Tell that to NYC, SF, LA, Washington DC, Seattle, and Boston. There are parking spots in Boston that are >$250k: https://www.reddit.com/r/ABoringDyst...on_costs_350k/

Housing has rebounded since 2012, but remains depreciated compared to the highs of 2007. That is very atypical as compared to other major markets in the country. I believe Chicagoland has the slowest appreciating housing market in the US as a %, and was actually down YoY 2017 to 2018.

Sorry, OP, but you're wayyyy off.

[fusillirob1983]

Originally Posted by Chicago60614

The "exodus out of state" isn't by people who have jobs and are living in houses that cost hundreds of thousands of dollars in the suburbs.

Maybe your specific memories or houses are different, but there has NOT been a huge appreciation of housing in the chicago area over the past 7-10 years. It might not be what you're expecting, but the values have been fairly flat the past decade.

Many towns' prices are up compared to 2012-2014 but still down compared to 2006-2008.

[mwj119]

Originally Posted by fusillirob1983

many towns' prices are up compared to 2012-2014 but still down compared to 2006-2008.

+1

[MSchemist80]

Housing is significantly underpriced for being adjacent to a major metropolitan area. You can't compare Chicago area real estate prices to Florida, Kansas, Alabama... Also 7 years was pretty close to the bottom of the housing market crash.

[Hiruko]

Originally Posted by ngrome

Is it just the market these days? When my family moved back to Illinois from Florida over seven years ago, we paid less than $200,000 for our home. I never paid over $200,000 for a home, even in Florida. Homes in the south suburbs that have 3 or more bedrooms and baths with over 2000 sq. ft. are commanding $250,000 at least, realistically probably more like $300,000 to $400,000, such as homes in DuPage County, etc. And obviously up to half a million or more in the more affluent neighborhoods.

But even older homes that are 1500 sq. ft. or less with 2 bedrooms one bath are garnering close to $200,000 if not a little over that, maybe around $180,000 starting. My current home is larger than these homes, with 3 bedrooms 2.5 baths, and as I said costs even less than the smaller homes today.

And people are complaining we pay too much taxes here in Illinois, but with the exodus out of this state, why are the property values not waning but rather they're still climbing? So it may be a seller's market these days but didn't realize the pendulum swung so hard to the other side.

Frankly, I have no idea what you are looking at. It runs completely counter to the facts.

[ngrome]

Originally Posted by Berteau

They are under priced. Why are you comparing Chicago to Florida? You should be comparing it to the coastal cities. Chicago is the 3rd most populated region in the Country. Its like asking why is New York City so "overpriced" compared to Alabama. The question makes no sense.

Originally Posted by Chicago60614

The "exodus out of state" isn't by people who have jobs and are living in houses that cost hundreds of thousands of dollars in the suburbs.

Maybe your specific memories or houses are different, but there has NOT been a huge appreciation of housing in the chicago area over the past 7-10 years. It might not be what you're expecting, but the values have been fairly flat the past decade.

Originally Posted by mwj119

You bought a house in the worst economic crisis since the Great Depression, so comparing today to seven years ago makes very little sense.

Chicago is a Tier 1 MSA- Education, healthcare, culture, big city, public transportation, large GDP. You are saying that $250k is overpriced!? Man... Tell that to NYC, SF, LA, Washington DC, Seattle, and Boston. There are parking spots in Boston that are >$250k: https://www.reddit.com/r/ABoringDyst...on_costs_350k/

Housing has rebounded since 2012, but remains depreciated compared to the highs of 2007. That is very atypical as compared to other major markets in the country. I believe Chicagoland has the slowest appreciating housing market in the US as a %, and was actually down YoY 2017 to 2018.

Sorry, OP, but you're wayyyy off.

Originally Posted by fusillirob1983

Many towns' prices are up compared to 2012-2014 but still down compared to 2006-2008.

Originally Posted by MSchemist80

Housing is significantly underpriced for being adjacent to a major metropolitan area. You can't compare Chicago area real estate prices to Florida, Kansas, Alabama... Also 7 years was pretty close to the bottom of the housing market crash.

I guess you're all right, because I am a beneficiary of good timing, not necessarily research, that I bought my homes towards the end of the market crashes both times, in FL and in IL (actually in FL it was before the boom). I was able to sell my home in FL for a little over 200% of my original purchase price, and I have almost 50% equity in my current home in IL, so could be better if the market was a little better here like some of you are saying it should be.

But again, not used to overpaying for a house (relative to when I bought it) as I would not be able to purchase even a basic home like the one I got now if I moved here now compared to seven years ago, so I'm glad I moved back when I did. It's nice to hear Chicagoland is still considered Tier 1 MSA despite all the negative press in the region and in IL in general, caused by the bad spots in town and corruption in the city and the state, which hopefully will change with new leadership in those areas (don't snicker with the new governor). In a ways I'm glad it's not ridiculous like in other metropolitan areas some of you mentioned (as ridiculous is relative as you all are telling me), but I'm just looking to finish off a mortgage like I did in FL, so I will not have to worry about that debt, i.e. be house poor, when I'm ready to retire in about 10 years, or hopefully less. If I do leave IL again in my retirement years, you're probably right, I'm not staying in the typical suburban home in a metro area but in a much smaller place and in a smaller housing market.