Galena / The Galena Territory - Is it feasible? (Chicago, Rockford: sales, real estate)

[chup04]

Turning 30, my wife and I are considering purchasing our first, primary home in the Galena Territory because of all the great activities there - golf, skiing, owner's club with gym/pool, biking, hiking, lake. We currently live in downtown Chicago. I've got a great work from home job, so I can live anywhere. The Territory also happens to have high speed internet for most of the area. The area seems great for us for a number of reasons.

But what worries me is:
1) The sale time. Based on recent data the average sale time seems to be around 9-12 months. That seems really high.
2) I'm also worried about homes in the Territory *losing* value. Sales trends don't seem especially strong there.

Say something happens at my job, I get promoted (and have to move), lose my job, something else unforeseeable and we have to sell the house. Will I be waiting a year or more to sell a house that's lost value? Or do people just price the homes way too high because their mostly rentals/vacation homes?

[debbie at bouontiful]

I've lived on the territory and in small towns around it. Loved the entire area. My best friends live there. We were transferred to OK and we bought a cattle ranch which would take at least five years to sell if we're lucky. 9 - 12 doesn't bother me. Government bought our home in ILL so I didn't have that worry before. Most people on the Territory are from Chicago and when the recession hit the Territory was hurt more than say the towns around. I think it would be a great place to retire to is my thinking. Of course you guys are younger than my kids so you'd have to worry about selling right away.
Why don't you rent? I would think there would be plenty of rentals available on the Territory.

[chup04]

Thanks for that helpful insight. Renting in Galena has crossed our minds. But I wanted to see if my concerns were real, or if there was another explanation. If home values are fine and 9-12 months isn't bad, then I'd like to start building up some equity somewhere. We've been renting for 5 years in downtown Chicago. But if home values and sales times are only getting worse in the Galena Territory, then we should probably stay away.

[4122]

The home values are low and market time is 9-12 months because Galena and Galena Territory are tourist areas and are small towns. Galena is a beautiful place and is an awesome place to live.

[chup04]

Originally Posted by 4122

The home values are low and market time is 9-12 months because Galena and Galena Territory are tourist areas and are small towns. Galena is a beautiful place and is an awesome place to live.

That sounds like an endorsement! I'll take it.

[VacationRentalGalena]

Purchasing a home in the Galena Territory is no easy feat, take my word for it, we just did… well, about a year ago. Anyway, we’ve been visiting Galena for the last 9 years since we’ve moved to Chicago. We have three kids and the entire family loves the place for a variety of reasons.
As for the house purchase. My question comes from the spot of “intent” as in what is your long-term intention? It appears that you want to live there. If that’s the case then I say “do it!” But before you do I’d spend as much time there as possible. Our intention, BTW, was to use the house as a vacation rental property in Galena (we're still outfitting but will open soon.)
TheGalenaTerritory.com is a pretty good website if you want to get some non-tourism type information. If you go to that site then hover over the menu item “The Galena Territory” a sub-menu will pop up. Here you should find a number of publications which you can do historical research on house prices as there are a lot of realty ads.
Our biggest surprise was the cost of the gas to heat the home (our house is a 4 bedroom, 4 bath; about 6,000 square feet.) However, two weeks ago was the annual home owners meeting there and we found out from numerous other owners that we are not alone in this issue, no matter the size of your place. PLUS!... There is going to be a rate hike on water within the next 24-36 months that could shoot up your water cost between .5 and 4x. Know what you're getting into! (Look at page 16 of the February 2015 Territory Times.)
If you want to chat about this just PM me and we’ll figure out a way to connect.

[chup04]

Wow tons of great information thank you. The water increase seems really weird. Strange cost increases like that make me want to steer clear. Thanks for directing me to the Territory Times. I've read through a couple issues but didn't notice the new releases.

I am pretty familiar with the Territory - spent my summers growing up there. The golf, trails, skiing, hiking, biking, other activities are what's drawing me to consider living there.

Another thing I'm keeping in mind is that my wife and I will be in our early 30s, seemingly a different demographic than most of the people in the Territory and town. Currently we live in downtown Chicago with friends and activities a short walk or L ride away. But Galena is gorgeous and we'd stay really active with all the stuff we can do.

Originally Posted by VacationRentalGalena

Purchasing a home in the Galena Territory is no easy feat, take my word for it, we just did… well, about a year ago...My question comes from the spot of “intent” as in what is your long-term intention? It appears that you want to live there. If that’s the case then I say “do it!”

Our intent would be to stay there for awhile, like 5 or 10 years or more. Of course, I can't predict the future but my work from home job seems stable enough. Should something happen (move due to promotion/layoff, etc) I just want to feel secure enough that we could sell in a reasonable amount of time. And not have the home tank in value. At the same time, it's not necessary that prices skyrocket either.

[CtrlEsc]

I am not from Galena but I took a lot of school field trips there.
I have lived all along the Illinois US 20 route. I grew up in Savanna, IL, spent my twenties in the Carpentersville, IL area, and my thirties in the Rockford, IL area.

Galena is a nice place to visit, but I can't imagine it would hold much interest for someone from the Chicago area other than summer activities. It's touristy, so about 8 months out of the year, those things you loved to do, won't be there.

I also have a "work from anywhere" job. I ended up in Neenah, Wi. Life is good here. I live about five blocks from Lake Winnebago and take my kayak out regularly. There is a real community feel here. People are very active and very friendly. What made me choose Neenah (and the Fox Valley Area) was the cost of living, availability of activities, the community pride, and the availability of shopping (for the wife.) There is a surprising amount of wealth in the Fox Valley which allows for cultural events. People take care of their homes and real estate moves here quickly.

The only down side is the cost of energy. The taxes are average for the Illinois/Wisconsin area. You can get a respectable 3-4 bedroom home here for 160k-180k. The winters are about 3-4 weeks longer than Chicago. The summers are cooler. The cost of energy in winter is a bit of a shocker, but between the lower housing cost and the cool summers, it evens out.

Since I have been here, I have run across two other couples that moved up from the Naperville area.

[BigDip]

Hi!

We are considering a move to the Galena area and are interested in the Galena Territory. My wife and I are in our late 40's and work from home, so we are not tied down by our employment. The one concern we have is that we have 2 young children (6 & 7), and a 14-year old. I realize that the median age of the Territory is in the 60's - should we even consider the area if we have kids?

Thanks

[christianstad]

Well, the Territory certainly is getting some attention on City Data.
We are retirees who live on the busy, busy north side of Chicago. We love peace and quiet, something we don't get around here- and have been thinking about a move to Galena, also, but we can't decide between the town or the Territory.
I love the latter as it is beautiful and seems quiet AND because they have their own security just in case you have someone acting out which I heard can happen with rentals. We rented there a while back and had questionable renters ourselves next door. No thanks.
We bid on an old mansion in the town 5 years ago but health concerns came up in the midst of our negotiation so we had to drop out - then when we tried to resume it- the house was sold. Very beautiful up the hill, etc.
When and if the train comes in I bet values will go way up. It was supposed to happen this year but with the budget problem (!!) its on hold - until God knows when.