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Old 01-27-2016, 10:41 PM
 
37 posts, read 36,318 times
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Hello Chicagoans, how do you feel about the market now? Ok, overheated, about to get there? I am planning on selling and not sure if I can safely wait till May/June. I am in Lakeview. What's your take on RE prices and the market NOW? TIA
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Old 01-27-2016, 11:48 PM
 
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It rarely makes sense to wait until May / June to list a home in this region. Even if your target would include folks with school aged children that might want to move after school is finished there are MANY shoppers that will begin their house hunting MUCH earlier.

I would strongly suggest that you begin making every effort to "declutter" NOW, then undertake a thorough CLEANING of everything that can be scrubbed / shampooed. If you need any minor painting or repairs (wobbly hinge, leaky faucets...) you get that addressed. When the house looks "move in ready" I would interview several local real estate agents that you get through referrals from friends / coworkers that have been satisfied with their efforts in selling their home. Once you decide on the right agent to help you market your home that agent should give you a time line that will be most effective in reaching buyers. That likely will start sometime around SPRING BREAK...

The potential effect that poor global economy as well as dismal local economic news might have on the desire of buyer to commit to purchasing your home should be part of the reality that you assess. If you cannot get offers that match your target, have a "plan b" -- that might mean cuts in asking price or just rethinking your next move.

I do not anticipate any dramatic collapse in real estate prices but things might slow, especially in market segments / neighborhoods that have been "hot" a little too long. I suspect there will be strong demand in some suburbs, especially for the more affordable homes in areas served by desirable schools. The uniquely bad fiscal condition of CPS could force a substantial number of families to seek more stable alternatives...

Chicago Public Schools holds off on $875 million borrowing deal - Chicago Tribune
Quote:
An analysis by Hiawatha, Iowa-based Merritt Research Services shows that no state or local government in the continental U.S. has done such a large deal while possessing such a low debt rating in at least the past decade.
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Old 01-28-2016, 09:06 PM
 
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Fairly priced for the most part
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Old 01-31-2016, 05:37 AM
 
Location: Below 59th St
672 posts, read 758,758 times
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Chicago is blessed with housing supply that largely meets demand. (I know some people point to skyrocketing 'values' in certain cities as signs of health, but housing prices that outgrow wages are not healthy and cause serious long term damage.)

So if you're buying to realize fast capital gain then it's not the best option. On the other hand, good neighborhoods should grow slow-and-steady, in line with inflation. The property taxes are steep but in a pinch you could reliably rent the place out to cover costs.

Now that the foreclosures have largely cleared, Chicago's 'green zone' is a decent place to buy, imo.
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Old 01-31-2016, 10:42 AM
 
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Default Well, that is one view...

Quote:
Originally Posted by compactspace View Post
Chicago is blessed with housing supply that largely meets demand. (I know some people point to skyrocketing 'values' in certain cities as signs of health, but housing prices that outgrow wages are not healthy and cause serious long term damage.)

So if you're buying to realize fast capital gain then it's not the best option. On the other hand, good neighborhoods should grow slow-and-steady, in line with inflation. The property taxes are steep but in a pinch you could reliably rent the place out to cover costs.

Now that the foreclosures have largely cleared, Chicago's 'green zone' is a decent place to buy, imo.
The massive price differences in desirable areas, with good access to jobs downtown and pleasant shops/ dining /entertainment options, stands in sharp contrast to the troubling miles and miles and increasing undesirable housing with no nearby jobs, absence of any kind of retail / dining / entertainment ought to be troubling. The forces that have rewarded insiders and abused the powerless may very well continue to push the two extremes further apart, with nothing to maintain a middle ground...
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Old 01-31-2016, 12:44 PM
 
Location: Upper West Side, Manhattan, NYC
15,323 posts, read 23,957,005 times
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If you look at the entire city, it is not increasing that much but in reality it depends on where you are. For a city of its size compared to some other nice cities in the country (LA, NYC, San Francisco, San Jose, possibly San Diego, Boston, DC, etc) Chicago is priced fairly nicely. There is a big supply of housing here that is still relatively inexpensive if you are used to those other cities. Some areas though will not see any increase of prices in the near future - I'm talking about properties in bad parts of town where you can literally get a single family home for $35,000 (not counting repairs). Not the type of areas you want to buy in if you're looking for a nice family neighborhood. There are other areas though, which are increasing at the same time - so everything kind of evens out in a way if you just look at the overall city numbers. There are definitely many people getting a ROI but others who aren't.
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Old 02-02-2016, 10:56 PM
 
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I am simply freaked out from another housing bubble and market overheat so trying to sell before that, closer to peak. I know none of you has the crystal ball, but inventory is SO low in Lakeview now, although prices are not too high.
Thank you everyone for the insight. Much appreciated.
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Old 02-28-2016, 08:32 PM
 
143 posts, read 334,573 times
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I found this a few months ago. I live in Seattle which is outrageous. Chicago from my perspective is one of the most reasonable and affordable housing markets in the US. This article seems to support that idea.

http://www.bizjournals.com/chicago/n...dervalued.html
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Old 02-29-2016, 09:00 AM
 
11,289 posts, read 26,225,037 times
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Quote:
Originally Posted by JL1585 View Post
I found this a few months ago. I live in Seattle which is outrageous. Chicago from my perspective is one of the most reasonable and affordable housing markets in the US. This article seems to support that idea.

http://www.bizjournals.com/chicago/n...dervalued.html
The city has built over 120,000 new housing units between 1996 and 2015. There have been 11,500 built in just the past two years. I think this goes a long way to why the city doesn't see the insane housing costs in desirable areas.

Chicago built a huge majority of this housing in downtown, north side and northwest side areas. This could be seen as somewhat comparable to San Francisco. San Francisco on the other hand is extremely desirable, but has built only 1/3 the amount of new housing compared to Chicago. Again, the cities are much different sizes, but the areas of Chicago that are desirable and where a huge majority of this construction takes place has a similar footprint and population as the city of San Fran as a whole.

Number of units built 1996 - 2014:

I've highlighted the cities where the housing was mostly infill or cities that are "built out". For instance in Houston and Phoenix a lot of the new housing construction is in sprawling suburban neighborhoods with single family homes. Housing that exisits in other places, but it's all out in the suburbs since the central city has no vast tracts of vacant land.

New York City: 336,095
Houston: 215,420
Phoenix: 155,956
Los Angeles: 128,408
Chicago: 113,822

Dallas: 113,136
Atlanta: 91,487
Seattle: 80,143

San Diego: 79,270
Denver: 67,717
Miami: 54,204
San Francisco: 39,681
Washington DC: 32,938
Philadelphia: 30,427
Boston: 20,964
Detroit: 6,561
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Old 02-29-2016, 10:18 AM
 
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I would caution that the same firm that provided this analysis was widely derided by the posters to this thread who find Chicago a delightful bargin -- //www.city-data.com/forum/chica...ity-world.html

While it is entirely possible that the methodology of the studies are different enough that both conclusions are valid, there are an abundance of posters that seem to seize upon the flaws that point the negatives facing Chicago and far fewer that question more upbeat conclusions...

Personally the greatest threats to price stability for the region remain the terrible lag that there has been in job growth relative to other desirable cities, and the controversy in that thread is worth reviewing: //www.city-data.com/forum/chica...ojections.html
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