Chicagoland Housing Prices (Evanston, Skokie, Glenview: section 8, 2015, foreclosure)

[Bloomfield1]

Originally Posted by JTE1969

That is TOTAL BULL**** ECONOMIC THINKING THAT INCREASING AND HIGHER RISING HOUSE PRICES IS GOOD FOR THE ECONOMY. EVENTUALLY, A POINT COMES WHERE HOUSES ARE TOO EXPENSIVE, THEN A CRASH COMES TOO. FALSE ECONOMIC CYCLE - REALLY!

Not sure why you're yelling in all caps, but you're making zero sense. Metros with higher home price appreciation generally have smaller home price dips during recessions. That's, in part, why they have high home prices - people consider them to be safer long-term investments.

The Bay Area did much better than Chicago during the last recession. Chicago has somewhat low home values, in part because buyers are unsure of the metro area's long term prospects (population loss, slow-economic growth, budget problems, etc.). That doesn't mean Chicago is a safer bet during a recession; it will probably be a worse bet long-term, or at least that's what people are betting.

[IrishIllini]

Originally Posted by Bloomfield1

I don't think you understand what's being measured in that link. Has nothing to do with whether or not "people in Chicago have the incomes to support housing costs".

And we aren't talking incomes; we're talking property values. Chicago has (relatively) low property values for a major city, and there are good underlying reasons for this.

Swiss Bank UBS that ranked 18 financial centers based on its “bubble index,” an indicator that measures home prices relative to other metrics, like incomes. Chicago ranked dead last, the only city where UBS found homes to be undervalued.

[JL1585]

Originally Posted by xsboost

Good news if you're looking to buy and assuming the prices will climb. Bad news if it's an indication the direction the city (and state) is heading with all the fiscal/financial issues we've been having. I hope it's not the latter.

To the OP, I agree with the article 100%, in fact, so much I saw a similar article about a year ago, it made me go and buy a condo in the south loop (I live in Seattle). Im now moving back to Chicago, and will buy a second place in Bronzeville, near the water. The property in Chicago, makes no freaking sense. Buy, and hold. You'll start to see an inflow of outside investors very, very soon.

Great post by the way, thanks for providing the intel.

[compactspace]

Originally Posted by Bloomfield1

Low housing prices are only good if you don't care about resale value; you just want to buy something for a cheap price.

High and rapidly appreciating housing prices are only good if you intend to leave that particular market and take all your gains with you. Otherwise they're terrible for just about everybody. Inflated extant housing stock means a lot of money is being used unproductively.

Originally Posted by Bloomfield1

And we aren't talking incomes; we're talking property values. Chicago has (relatively) low property values for a major city, and there are good underlying reasons for this.

There are. Primarily, thanks to land availability and developer-friendliness, it has sufficient supply to meet demand. The demand is not as high as it could be, of course, thanks to pensions, crime and schools.

[IrishIllini]

http://www.chicagobusiness.com/reale...er-tracy-cross

New home sales up more than 27 percent in Q3. Feel a lot of people knew this, but interesting to see the numbers.

[flamadiddle]

Originally Posted by IrishIllini

http://www.chicagobusiness.com/reale...er-tracy-cross

New home sales up more than 27 percent in Q3. Feel a lot of people knew this, but interesting to see the numbers.

Hogwash! Someone needs to inform Crain's that everyone is leaving!

[IrishIllini]

Originally Posted by flamadiddle

Hogwash! Someone needs to inform Crain's that everyone is leaving!

#NextDetroit

http://chicago.curbed.com/2016/10/25...rowth-building

This was also exciting. I walk by the General Growth building every day and I have recently been wondering how long it'll last. There's a lot of construction up near the former Cabrini Green housing projects too. The Atrium Village development is making progress as are the Mormon church and mixed use developments just south off the Brown Line.

[IrishIllini]

Some more good news!

"While Chicago spent over a year at or near the bottom of the S&P Dow Jones Indices' index of 20 major cities, it has been climbing that ladder in the past few months, suggesting that recovery is strengthening faster here than in some other cities."

http://www.chicagobusiness.com/reale...hiller-indices

[JL1585]

Originally Posted by IrishIllini

Some more good news!

"While Chicago spent over a year at or near the bottom of the S&P Dow Jones Indices' index of 20 major cities, it has been climbing that ladder in the past few months, suggesting that recovery is strengthening faster here than in some other cities."

http://www.chicagobusiness.com/reale...hiller-indices

LoL you should change your name to Chicago bull. But I'm with you, also rooting for the housting/real estate market in Chicago. It's way undervalued. Living on the west coast, and seeing every property end in a bidding war, asking going for 50-100k over. Chicago is just cheap. I believe we're at the end of the acquisition phase. Next is growth and development, followed by full on recovery/potentially bull market.

[IrishIllini]

http://www.chicagobusiness.com/reale...ise-in-october

3.9 percent ain't bad. Up from 1.3 percent this time last year! Tripled in less than a year. Guess that's what happens when you're starting from the bottom. Wonder how long Seattle and Portland sustain 10 percent YoY. Surprised we've surpassed DC for appreciation since everyone seems to be of the opinion that the District is booming. NYC is also a bit low, but their RE prices are sky high to begin with.