Does anyone think we're entering another real estate bubble? (Chicago: short sales, real estate market)

[moderngnome]

Or are we just finally catching up to where Chicagoland should be, since we are a major metropolitan area with a large population (like NYC, California, NJ, Seattle)?

That all said, I was just looking at a real estate book from the grocery store today - and homes are so, so expensive. There is no way that the average family can buy even a reasonable home in this market (in a great school district).

What does everyone think?

[4122]

I think we're in a real estate bubble compared to the rest of midwest, but not compared to the nation. We aren't as expensive as places like California, Boston, Seattle, etc. We have the most expensive real estate market in the midwest though.

[JJski]

Chicago is a destination and one of the top desirable big cities (globally recognized) so IMO I think the prices are catching up to reflect that... It is sad that so many average families are getting priced out.... but on a positive note - i do think some of the less desirable towns will get better and become viable alternatives...

[wjj]

Buffalo Grove is certainly not in a bubble. Prices are still well below what they were in 2008. Still a lot of people deeply under water. And a lot of short sales and foreclosure sales still going on which are keeping prices from rising much. Sky high RE taxes are not helping either (despite a decline of at least a third in home values, RE taxes kept marching up each and every year). Prices are still a good 20% to 25% below where they were on the Lake County side of BG.

[ToriaT]

No prices are still trying to catch up.

[RogerMarrino]

As far as the western suburbs are concerned, Yuppieville (Oak Park, River Forest, Western Springs, La Grange) is rapidly climbing to pre-crash heights and beyond, but I doubt that bubble will ever burst because there will always be wealthy whites with career-related ties to Chicago who are willing to pay ungodly sums of money to segregate themselves from the 'poors'.

Property taxes are the real problem, and that bubble will never burst, unfortunately. Even the poorest suburbs are in the $3000+ range, which is a crime since they get zero return on that investment. They're bleeding a few hundred bucks a month for trash collection and horrible schools - a wretched situation, to be sure.

[Lookout Kid]

Originally Posted by RogerMarrino

As far as the western suburbs are concerned, Yuppieville (Oak Park, River Forest, Western Springs, La Grange) is rapidly climbing to pre-crash heights and beyond, but I doubt that bubble will ever burst because there will always be wealthy whites with career-related ties to Chicago who are willing to pay ungodly sums of money to segregate themselves from the 'poors'.

Probably true. Though as a resident of a more westerly Yuppieville, you can easily argue that these suburbs have a lot more to offer than "segregation from the 'poors'". There are many reasons that each of these towns became "Yuppieville" in the first place--and I don't think lack of proximity to poor people is even in the top ten. In fact, Oak Park is directly adjacent to one of the most poverty-stricken crime-ridden neighborhoods in America. La Grange is a five minute drive from poor neighborhoods. River Forest is across a bridge from Maywood.

[RogerMarrino]

Whatever the root causes, Chicago's traditional working-class suburbs have fallen on hard times over the last few decades. What the original poster said about the average family not being able to afford a reasonable home in a great school district is so true it hurts. Many of them can't even afford a modest fixer-upper in a reasonably decent school district. Even if they could, the property taxes would murder them. This has less to do with a real estate bubble and more to do with the fact that the Chicagoland area is continuing its decades-long trend toward two distinct types of suburbs: upscale suburbs that are out of reach of 90% of the population and blighted suburbs that have seen better days. There's very little, if any, middle ground in this region of the country.

[destination-unknown]

Originally Posted by RogerMarrino

Whatever the root causes, Chicago's traditional working-class suburbs have fallen on hard times over the last few decades. What the original poster said about the average family not being able to afford a reasonable home in a great school district is so true it hurts. Many of them can't even afford a modest fixer-upper in a reasonably decent school district. Even if they could, the property taxes would murder them. This has less to do with a real estate bubble and more to do with the fact that the Chicagoland area is continuing its decades-long trend toward two distinct types of suburbs: upscale suburbs that are out of reach of 90% of the population and blighted suburbs that have seen better days. There's very little, if any, middle ground in this region of the country.

This isn't unique to Chicago. It's a macro issue affecting many major metro areas in the US.

[ToriaT]

I agree. There are very few affordable suburbs with good schools that people want to move to. Most of the so called affordable suburbs have lesser schools and more diverse populations.