The next five years in Illinois (Chicago, Peoria: new house, property tax, living in)

[flamadiddle]

Originally Posted by Grlzrl

I understand that real estate is local. I used to be an appraiser. But this decline is happening. It might be slower in some areas than others. But it's happening. The realtors can deny it all they want but all you have to do is see the DOM and how many fewer sales there are this year as compared to last.

(IMO) It's definitely happening in Illinois due to the following factors -

* High Property Taxes
* Increasing Income Taxes (will obviously go higher if JB is elected)
* High Sales Tax
* New tax law that limits deduction of income/property tax against federal return to $10K max

All of these together will force more to flee and continue to drive down real estate prices (supply/demand). I rolled the dice moving back here a couple years ago when Income taxes were 3.75% and Rauner promised to veto any income tax increase (he tried), but given the factors above and the prospect of another tax and spend Democrat as Governor, I've got a row of boxes lined up and have begun packing. You win some, you lose some, but you have to know when to fold em'

[My Kind Of Town]

If all the doomsdayers are right, I’ll be able to afford one of these two homes with my $700k budget in a few years. Sweet!

https://www.redfin.com/IL/Hinsdale/1.../home/14152707

https://www.redfin.com/IL/Hinsdale/1.../home/17217740

[flamadiddle]

Originally Posted by My Kind Of Town

If all the doomsdayers are right, I’ll be able to afford one of these two homes with my $700k budget in a few years. Sweet!

https://www.redfin.com/IL/Hinsdale/1.../home/14152707

https://www.redfin.com/IL/Hinsdale/1.../home/17217740

You may be right, but many will be left without a chair when the music stops. Hinsdale is one of the few areas where property taxes are still relatively reasonable, but how long will that last (JB, JB, JB)? Even so, the first home you listed has been on market 142 days. The second was purchased in 2003 at $1,135,000 and they are asking $1,279,000 (15 years later). They are likely going to lose money after commission and this is one of the most desirable areas in the Chicago metro. Most homes where I'm at are selling for less than what the previous owner paid so I'll be happy if I can break even or take a small loss.

[Grlzrl]

Originally Posted by flamadiddle

You may be right, but many will be left without a chair when the music stops. Hinsdale is one of the few areas where property taxes are still relatively reasonable, but how long will that last (JB, JB, JB)? Even so, the first home you listed has been on market 142 days. The second was purchased in 2003 at $1,135,000 and they are asking $1,279,000 (15 years later). They are likely going to lose money after commission and this is one of the most desirable areas in the Chicago metro. Most homes where I'm at are selling for less than what the previous owner paid so I'll be happy if I can break even or take a small loss.

Yep. If I sell now, I will take a loss. I bought in 2004.

[damba]

Originally Posted by Grlzrl

Yep. If I sell now, I will take a loss. I bought in 2004.

Of course you would, you bought a home that cost more than a million dollars.

[Vlajos]

At least in the City, sales are down because there is nothing on the market. Sales to closing times are still short and prices are increasing. I have no idea about the rest of the state though. I would never consider living in the vast majority of it.

[Grlzrl]

Originally Posted by damba

Of course you would, you bought a home that cost more than a million dollars.

Not sure I follow your point.

[My Kind Of Town]

Originally Posted by flamadiddle

You may be right, but many will be left without a chair when the music stops. Hinsdale is one of the few areas where property taxes are still relatively reasonable, but how long will that last (JB, JB, JB)? Even so, the first home you listed has been on market 142 days. The second was purchased in 2003 at $1,135,000 and they are asking $1,279,000 (15 years later). They are likely going to lose money after commission and this is one of the most desirable areas in the Chicago metro. Most homes where I'm at are selling for less than what the previous owner paid so I'll be happy if I can break even or take a small loss.

Not to sound cynical but someone else’s loss is my gain. Our next home will be our forever home, 25+ years.

Regarding property taxes, Hinsdale hardly relies on the state for public school funding as is. Only ~4% of the public school system is financed by the state. Public school funding is ~75% of my property tax bill. Diminished state funding will have a minimal impact on my tax bill. The other areas more reliant on state funding will certainly take a hit though.

https://www.d181.org/uploaded/Depart...-_DISTRICT.pdf

[Hiruko]

Originally Posted by My Kind Of Town

Not to sound cynical but someone else’s loss is my gain. Our next home will be our forever home, 25+ years.

Regarding property taxes, Hinsdale hardly relies on the state for public school funding as is. Only ~4% of the public school system is financed by the state. Public school funding is ~75% of my property tax bill. Diminished state funding will have a minimal impact on my tax bill. The other areas more reliant on state funding will certainly take a hit though.

https://www.d181.org/uploaded/Depart...-_DISTRICT.pdf

Hinsdale, like all of the suburban districts, heavily depend on the state for teacher and administrator pension costs. If that changed, it would be a major problem for suburban communities.

[KerrTown]

Originally Posted by Vlajos

At least in the City, sales are down because there is nothing on the market. Sales to closing times are still short and prices are increasing. I have no idea about the rest of the state though. I would never consider living in the vast majority of it.

I would never consider Illinois or the Midwest outside of Chicagoland. Northside is okay and the North/West suburbs are very good. Peoria looked very depressed when I visited 2 years ago.