Does anyone think we're entering another real estate bubble? (Chicago: buy, school districts)

Still utterly disagree that Chicago isn't in a bubble. We go to open houses every weekend, and you don't know how many realtors have point blank told us: things just aren't selling at a certain price point, or: something weird is happening. Once in a while we'll encounter the typical used car salesman type who says: rates are low, great time to buy! Again, there's zero chance buying now is a smart move (in our opinion). We'll be laughing in a few years when all these homes once listed for 8-900k are worth far less.

[destination-unknown]

Originally Posted by Rae4732

Still utterly disagree that Chicago isn't in a bubble. We go to open houses every weekend, and you don't know how many realtors have point blank told us: things just aren't selling at a certain price point, or: something weird is happening. Once in a while we'll encounter the typical used car salesman type who says: rates are low, great time to buy! Again, there's zero chance buying now is a smart move (in our opinion). We'll be laughing in a few years when all these homes once listed for 8-900k are worth far less.

Now it just sounds like you are trolling. We are currently looking for a house in the 850-900k price range and I have no idea what you are talking about. Many homes that are appropriately listed in this price range are moving quickly in Hinsdale/Western Springs/Clarendon Hills. In fact, we have found the supply of homes at this price point is vastly underrepresented. Of course there are some homes listed at a ridiculous price hoping some one will be dumb enough to bite so those homes tend to sit on the market for extended periods.

Having lived a part of my early professional life on the West Coast, we are more than comfortable with the current price levels in this market. We are just waiting for the right home at the right price. This is a major purchase and we do not want to feel we compromised or rushed into a decision. Having said that, we certainly are not holding out for prices to drop further because from our experience it is impossible to time the market whether that be real estate or stocks.

[cpm55]

Libertyville market has been a hot market but not crazy bubble like. I think if you have top notch schools and a good downtown area you are in good shape.

[ToriaT]

There are always people who believe its a bad time to buy and things will be in a more favorable position to buy due to something in the future. I think one of the best times to buy might have been a few years ago during the height of the housing crisis when housing prices were really cheap and interest rates were low. Problem is, price for your house you would try to sell would be greatly less and you could not easily get financing. That market was great for anyone without a house to sell and a lot of cash on their hands which would leave out most people. I think now is a good time to buy...I don't see housing prices falling just not appreciating at speed rates. You can sell your house now. You can get a mortgage at low rates. So I think it is a reasonably good time to buy If what the prior poster says is true, it would be the result of some big economic crash...housing prices do not just crash and become much less without a reason. The prior factors of no financing and not being able to sell would come into play then too.

That's the thing, there are plenty of reasons. I'm not saying that overnight prices will cut in half. My husband sends me article after article from housing sites, CNBC, data he reads, etc.. That all point to Chicago being in a bubble that will soon burst. On top of that, Illinois is screwed. Like 130 billion in the hole. He's read models that suggest tax rates will go up tons over next decade to attempt to make up deficit. Chicago will likely be the next Detroit, in our opinion. Almost every house we go to see is empty. Nobody lives there. Where are they? Either relocation or something fishy. It's strange. We wouldn't buy here unless we got an insane deal. Everyone has an opinion and will do what they feel is best.

[My Kind Of Town]

Originally Posted by Rae4732

That's the thing, there are plenty of reasons. I'm not saying that overnight prices will cut in half. My husband sends me article after article from housing sites, CNBC, data he reads, etc.. That all point to Chicago being in a bubble that will soon burst. On top of that, Illinois is screwed. Like 130 billion in the hole. He's read models that suggest tax rates will go up tons over next decade to attempt to make up deficit. Chicago will likely be the next Detroit, in our opinion. Almost every house we go to see is empty. Nobody lives there. Where are they? Either relocation or something fishy. It's strange. We wouldn't buy here unless we got an insane deal. Everyone has an opinion and will do what they feel is best.

1. Please post these articles you are referring to.
2. If Chicago is on verge of becoming Detroit why would you consider buying here in the future? You couldn't pay me to live in Detroit right now.
3. Why are you still attending open houses every weekend if you aren't planning to buy in the near future? Sounds like you have a lot of extra time on your hands...

[holl1ngsworth]

Originally Posted by Rae4732

That's the thing, there are plenty of reasons. I'm not saying that overnight prices will cut in half. My husband sends me article after article from housing sites, CNBC, data he reads, etc.. That all point to Chicago being in a bubble that will soon burst. On top of that, Illinois is screwed. Like 130 billion in the hole. He's read models that suggest tax rates will go up tons over next decade to attempt to make up deficit. Chicago will likely be the next Detroit, in our opinion. Almost every house we go to see is empty. Nobody lives there. Where are they? Either relocation or something fishy. It's strange. We wouldn't buy here unless we got an insane deal. Everyone has an opinion and will do what they feel is best.

Says all market timers for the past three years.

Here's a couple thoughts. Buy a modest home priced well below your means. Wheaton has some great ones. Price ebbs and income hiccups will have limited impact on your ability to afford your home. Don't build up your lifestyle around your high water mark. Plan for black swans. And stop throwing away hard earned money on rent.

[Vlajos]

Originally Posted by destination-unknown

Now it just sounds like you are trolling. We are currently looking for a house in the 850-900k price range and I have no idea what you are talking about. Many homes that are appropriately listed in this price range are moving quickly in Hinsdale/Western Springs/Clarendon Hills. In fact, we have found the supply of homes at this price point is vastly underrepresented. Of course there are some homes listed at a ridiculous price hoping some one will be dumb enough to bite so those homes tend to sit on the market for extended periods.

Having lived a part of my early professional life on the West Coast, we are more than comfortable with the current price levels in this market. We are just waiting for the right home at the right price. This is a major purchase and we do not want to feel we compromised or rushed into a decision. Having said that, we certainly are not holding out for prices to drop further because from our experience it is impossible to time the market whether that be real estate or stocks.

Of it's a troll.

[My Kind Of Town]

Originally Posted by ToriaT

There are always people who believe its a bad time to buy and things will be in a more favorable position to buy due to something in the future. I think one of the best times to buy might have been a few years ago during the height of the housing crisis when housing prices were really cheap and interest rates were low. Problem is, price for your house you would try to sell would be greatly less and you could not easily get financing. That market was great for anyone without a house to sell and a lot of cash on their hands which would leave out most people. I think now is a good time to buy...I don't see housing prices falling just not appreciating at speed rates. You can sell your house now. You can get a mortgage at low rates. So I think it is a reasonably good time to buy If what the prior poster says is true, it would be the result of some big economic crash...housing prices do not just crash and become much less without a reason. The prior factors of no financing and not being able to sell would come into play then too.

If it weren't for the first time homebuyer credit we probably would have waited another year or two before buying (which would have been the absolute bottom of the market) but I have no complaints with buying when we did (2009). We found a turn-key home, albeit relatively small in size, within a great community for less than $400k. There have already been 5 teardowns within a block of our home in the 5+ years we have been here so I see that as a good sign for future value when we do sell or add-on (which I am still holding as a possibility even if not our preferred option). Can't say we "planned" for the market downturn in any particular way but we did start looking as early as 2008 before holding out a bit on a few properties in our most desirable areas at the time (Hinsdale and Elmhurst).

[My Kind Of Town]

http://www.chicagobusiness.com/artic...nation-in-2015

Clearly, pensions are a hot button issue for the state but I feel that Govenor Rauner has already made some great strides in reform. I expect the change in leadership will begin to take hold over the next few years.