Downtown Naperville - Lots of homes for sale...?

[RJA29]

Originally Posted by mwj119

It's not Naperville specific.

Chicagoland has an ASTRONOMICAL amount of listings vs. population/buyers. Days on market is longer. The delta between listing price and sale price is huge. The luxury market is ice cold. These problems only get worse as you move away from Chicago. Blame it on property taxes, or population stagnance/decrease, or southern migration.. Pick your poison, but we all know it's an accumulation of many factors.

The only segment that is doing exceedingly well, outside of Chicgao itself, are non-luxury homes priced at fair market value, near the local commercial/town center with public transportation, in close proximity to downtown.

Where are the facts to back this up? Where is the proof that Chicago's (and the suburban) luxury market is _any_ worse off than anywhere else, especially at median levels across the nation?

Of course well-priced homes are doing well, and the reasons for this are well documented. But I am skeptical that the perceived "sell-off" of homes to aging boomers who want to downsize and cash out is a Chicagoland only problem.

[mwj119]

Originally Posted by RJA29

Where are the facts to back this up? Where is the proof that Chicago's (and the suburban) luxury market is _any_ worse off than anywhere else, especially at median levels across the nation?

Of course well-priced homes are doing well, and the reasons for this are well documented. But I am skeptical that the perceived "sell-off" of homes to aging boomers who want to downsize and cash out is a Chicagoland only problem.

https://www.illinoispolicy.org/chica...arket-in-2019/
https://www.chicagobusiness.com/resi...estate-problem
https://www.city-journal.org/chicago-housing-market
Get a Pre-Recession McMansion at Yesterday

From a prior post:

" https://www.chicagomag.com/images/20...e07_Charts.pdf

The numbers are almost hard to comprehend. It's amazing to see the jump in values between 1994 & 2007. It must have been a darn good time to be a homeowner in Chicagoland and beyond.

Equally amazing is just how hard the area has struggled post recession. I'll take Northbrook as an example: The average sale price in 2007 was $760k. Now? The median sold price is $450k. Barrington went from $722k to $455. Lake Forest from $1.4M to $802k. Evanston from $601k to $301k. Naperville $511k to $347k. Hinsdale $1.1M to $790k.

So, did this area's home values simply inflate well beyond it's ceiling between 1994 and 2007? Or is the State, as the naysayers have been telling us, really on a steep decline? Are folks better off renting as another recession looms in the next few years?

Other areas of the country, as mentioned in many other posts, saw the same increases between 1994 and 2007. Yet, they've seen another jump of 50-60-70-100+% since 2007/pre-recession highs.

That begs the question- Has any area of the country declined like this in recent memory? Is there any other area struggling like this? "

It is almost the rule, rather than the exception, that the average sales prices of a home is >$100kless than the listing. How much more proof would you need?

[RJA29]

I do not disagree that this is happening in the Chicagoland area.

My contention is that it is happening everywhere, and to a greater extent in larger, more established cities (of which Chicago is one, sure). This might be slightly exacerbated in some less desirable suburbs near Chicago - but suggesting that this is a Chicago-only problem is disingenuous.

https://www.mansionglobal.com/articl...in-2019-118152

https://www.cnbc.com/2019/05/01/luxu...-a-decade.html

https://www.forbes.com/sites/pamdanz.../#60f8c2233b5a

[mwj119]

Originally Posted by RJA29

I do not disagree that this is happening in the Chicagoland area.

My contention is that it is happening everywhere, and to a greater extent in larger, more established cities (of which Chicago is one, sure). This might be slightly exacerbated in some less desirable suburbs near Chicago - but suggesting that this is a Chicago-only problem is disingenuous.

https://www.mansionglobal.com/articl...in-2019-118152

https://www.cnbc.com/2019/05/01/luxu...-a-decade.html

https://www.forbes.com/sites/pamdanz.../#60f8c2233b5a

So 2019 has been slow, as we are on brink of another recession.. Mortgage rates will tell you all that we need to know. You and I can agree on that.

That is not the point of my post. I'm talking about a decades long slump in Chicagoland- One where most areas within have not yet gotten back to pre-recession values. It is very last of the top 100 most populated metros in more category than one. That is the point.

The OP meets the fact that a lot of homes for sale in desirable areas of Naperville with surprise. I would refute the idea that it's surprising at all. There are 287 units/homes for sale in Kirkland, WA, with a population of 90k. There are 324 units/homes for sale in Hinsdale, IL, population of 17,750. There are 564 homes for sale in Arlington Heights, IL with a population of 75k. There are 241 units/homes for sale in Newton, MA with a population of 90k. There are 150 homes for sale in Burbank, CA with a population of 105k. There are 463 homes for sale in Evanston, IL with a population of 75k.

The idea that other major metros have been struggling much like Chicagoland is patently false. Other cities metros are 50%+ in appreciation since pre-recession highs.

There is an elephant in the room that is trumpeting at a high volume.

[fusillirob1983]

Originally Posted by mwj119

So 2019 has been slow, as we are on brink of another recession.. Mortgage rates will tell you all that we need to know. You and I can agree on that.

That is not the point of my post. I'm talking about a decades long slump in Chicagoland- One where most areas within have not yet gotten back to pre-recession values. It is very last of the top 100 most populated metros in more category than one. That is the point.

The OP meets the fact that a lot of homes for sale in desirable areas of Naperville with surprise. I would refute the idea that it's surprising at all. There are 287 units/homes for sale in Kirkland, WA, with a population of 90k. There are 324 units/homes for sale in Hinsdale, IL, population of 17,750. There are 564 homes for sale in Arlington Heights, IL with a population of 75k. There are 241 units/homes for sale in Newton, MA with a population of 90k. There are 150 homes for sale in Burbank, CA with a population of 105k. There are 463 homes for sale in Evanston, IL with a population of 75k.

The idea that other major metros have been struggling much like Chicagoland is patently false. Other cities metros are 50%+ in appreciation since pre-recession highs.

There is an elephant in the room that is trumpeting at a high volume.

There is a slowdown. That said, I think it’s incredibly easy to mistake what’s happening per the OP as a larger signal. There’s also plenty of tear down activity occurring in Naperville. Perhaps some people realize it’s better for them to knock down a smaller house and build something to their liking that’s brand new than pay more for something 10-15 years old and compromise compared to their personal taste.

[RJA29]

Originally Posted by fusillirob1983

There is a slowdown. That said, I think it’s incredibly easy to mistake what’s happening per the OP as a larger signal. There’s also plenty of tear down activity occurring in Naperville. Perhaps some people realize it’s better for them to knock down a smaller house and build something to their liking that’s brand new than pay more for something 10-15 years old and compromise compared to their personal taste.

I'll concede that Chicago might be doing worse than some other areas in the luxury range. Or, people want to move and cash out. I am still not convinced that this is not a national trend.

All of that said - I totally agree with fusillirob1983 here - people who want a place that gets close to $1MM might just as well spend the extra $200K for a new build than something older. I am seeing this in other Chicagoland suburbs, in places like the Salt Lake City suburbs, booming new tech hubs (like Boise and Kansas City).

Chicago might not be as strong as some other markets, but I do not think it is that much weaker, either.

[mwj119]

Originally Posted by RJA29

I'll concede that Chicago might be doing worse than some other areas in the luxury range. Or, people want to move and cash out. I am still not convinced that this is not a national trend.

All of that said - I totally agree with fusillirob1983 here - people who want a place that gets close to $1MM might just as well spend the extra $200K for a new build than something older. I am seeing this in other Chicagoland suburbs, in places like the Salt Lake City suburbs, booming new tech hubs (like Boise and Kansas City).

Chicago might not be as strong as some other markets, but I do not think it is that much weaker, either.

In any event, Damba has pointed this out before.. Buying power is higher now than it has been in a long time here. Property taxes might walk me back from that statement a bit, though steady increases in income levels in Chicago probably make it accurate.

There was a time when buying a home in Lake Forest or Barrington was only a reality for the "1%". Now, I think that has substantially changed.

[Chicagoisthebest]

Naperville is so overrated and way to far

[nana053]

Originally Posted by Chicagoisthebest

Naperville is so overrated and way to far

Your opinion only.

https://www.niche.com/places-to-live...e-il/rankings/

Mostly it is rated A or better on many of the best place to live rankings.

[ToriaT]

It looks like the troll revived a bunch of posts just to bash Naperville. Ignore.