Housing market issues

[HuskyCaucasian]

I've been looking at houses here and there in the west suburbs and if you want something under 10 years old, unless you go way out west...you're payin 500,000 minimum.

 

New housing is RIDICULOUSLY expensive everywhere (probably a combination of product cost going up and UNIONS). My wife and I want to move back to her hometown in Iowa (near Iowa City) in a few years. New housing is WAY expensive even for our there. I can get a 60+ year old home in good condition for $110. New homes are a minimum of TWICE that. Or, smaller new homes are as expensive as larger older homes.

 

Let me give you this example...

3 Bedroom, 1 bath, 1304 sq ft, built 1900: Cost: $124,900 (or, $95.78 per sq ft

2 Bed, 1 Bath, 884 Sq. Ft., built 2005. Cost: $112,900 (or, $127.71 per sq ft.)

 

These two buildings are LITERALLY one block apart. Why would I buy the new one when I can get the old one with more square feet, a deck, AND a nice back yard?

Edited January 11, 2007 by Athomeboy_2000

[EvilMonkey]

New housing is RIDICULOUSLY expensive everywhere (probably a combination of product cost going up and UNIONS). My wife and I want to move back to her hometown in Iowa (near Iowa City) in a few years. New housing is WAY expensive even for our there. I can get a 60+ year old home in good condition for $110. New homes are a minimum of TWICE that. Or, smaller new homes are as expensive as larger older homes.

 

Let me give you this example...

3 Bedroom, 1 bath, 1304 sq ft, built 1900: Cost: $124,900 (or, $95.78 per sq ft

2 Bed, 1 Bath, 884 Sq. Ft., built 2005. Cost: $112,900 (or, $127.71 per sq ft.)

 

These two buildings are LITERALLY one block apart. Why would I buy the new one when I can get the old one with more square feet, a deck, AND a nice back yard?

Better hope the electrical has been upgraded sometime in the last decade or two, or you will not be a happy camper when your computer, etc start popping curcuit breakers every day. The same for the plumbing. I hated that the most at the 60 year old house I recently left. Every plumbing problem became an issue with just the age of the pipes working against you, and leaks in expensive, hard to get places.

[NUKE_CLEVELAND]

It really makes me laugh how stupid, naive and what a massive sense of entitlement some people have. A speculative housing bubble forms where people's homes appreciate to levels they really have no business being at. Of course then when the market corrects itself and prices return to more normal levels people think the world is coming to an end and start pointing fingers of blame.

 

People also love to cry poor after taking out all these exotic morgatges then having it blow up in their face now that interest rates are up.

 

 

whaa.......whaa......whaa.

[hammerhead johnson]

Hell my wife is from norridge and the basic chicago style bungalow houses are selling for 400,000 and people are buying them and knocking em down and building mansions. Why you would do that in Norridge, I don't know, but there's tons of it going on right now.

 

If you're Polish, Norridge is the place to be. For every old person trying to move out, there are 20 Polish dudes with construction businesses trying to get in, and they all want extremely large houses so that they can have enough room for their brothers, sisters, aunts, uncles, cousins, etc. The Polish stick together like you wouldn't believe. They're like Mexicans, except they have enough space to house everybody.

 

My one-level house in Norridge is approaching $400,000, and I got it for a little less than $200,000 back in 2002. It's my first house, and a humble one at that, but somebody is gonna overpay in order to put up a monster.

 

You have got to be either a cake-eater or a dumbass to even think about entering this market. You're going heads up against Polish dudes who are absolutely BANKING. Good luck to any and all who plan on moving to the NW side.

[AbeFroman]

It really makes me laugh how stupid, naive and what a massive sense of entitlement some people have. A speculative housing bubble forms where people's homes appreciate to levels they really have no business being at. Of course then when the market corrects itself and prices return to more normal levels people think the world is coming to an end and start pointing fingers of blame.

 

People also love to cry poor after taking out all these exotic morgatges then having it blow up in their face now that interest rates are up.

whaa.......whaa......whaa.

 

Nuke!!!! Something we agree on!!!

 

While I don't feel the complete sense of outrage you do, I definitely think this market is the product of some really naive and dumb decision making when it comes to mortgages. There is a speculative bubble.... and its gonna really hurt some people.

 

The ship be sinking for the housing market

[LosMediasBlancas]

We own a couple of places and plan to just sit on them until it makes sense to sell.

 

A lot of people around here have been telling us that the next big boom will be in New Mexico. I plan to take a road trip there in the summer, maybe buy a few acres out in the middle of frickin' nowhere then wait 10 years to see what happens.

[NorthSideSox72]

We own a couple of places and plan to just sit on them until it makes sense to sell.

 

A lot of people around here have been telling us that the next big boom will be in New Mexico. I plan to take a road trip there in the summer, maybe buy a few acres out in the middle of frickin' nowhere then wait 10 years to see what happens.

PM me. I am headed out there later this month to buy some forested open land, on a mountain in NM. I've done a ton of research I'd be happy to share.

[HuskyCaucasian]

Better hope the electrical has been upgraded sometime in the last decade or two, or you will not be a happy camper when your computer, etc start popping curcuit breakers every day. The same for the plumbing. I hated that the most at the 60 year old house I recently left. Every plumbing problem became an issue with just the age of the pipes working against you, and leaks in expensive, hard to get places.

Oh well obviously. It depends on house to house. Cant really tell from pictures on the internet. My wifes cousin recent bought a house not to far from those two and they gutted the plumming in the whole house.

[NUKE_CLEVELAND]

Nuke!!!! Something we agree on!!!

 

While I don't feel the complete sense of outrage you do, I definitely think this market is the product of some really naive and dumb decision making when it comes to mortgages. There is a speculative bubble.... and its gonna really hurt some people.

 

The ship be sinking for the housing market

 

Its not this particular issue that outrages me but just a general sense of outrage I feel when people create problems for themselves then cry and whine about it and expect someone to come fix it for them.

[Steff]

Its not this particular issue that outrages me but just a general sense of outrage I feel when people create problems for themselves then cry and whine about it and expect someone to come fix it for them.

 

 

 

Personal responsibility is so not cool....

[Chisoxfn]

New housing is RIDICULOUSLY expensive everywhere (probably a combination of product cost going up and UNIONS). My wife and I want to move back to her hometown in Iowa (near Iowa City) in a few years. New housing is WAY expensive even for our there. I can get a 60+ year old home in good condition for $110. New homes are a minimum of TWICE that. Or, smaller new homes are as expensive as larger older homes.

 

Let me give you this example...

3 Bedroom, 1 bath, 1304 sq ft, built 1900: Cost: $124,900 (or, $95.78 per sq ft

2 Bed, 1 Bath, 884 Sq. Ft., built 2005. Cost: $112,900 (or, $127.71 per sq ft.)

 

These two buildings are LITERALLY one block apart. Why would I buy the new one when I can get the old one with more square feet, a deck, AND a nice back yard?

New electrical work, good plumbing/pipes, efficient windows (keeps energy costs down), non creaky floors. There are a lot of major perks to having a new house as opposed to one built in 1900.

[Texsox]

New electrical work, good plumbing/pipes, efficient windows (keeps energy costs down), non creaky floors. There are a lot of major perks to having a new house as opposed to one built in 1900.

 

The downside is character. There is something special about old homes. Of course the infrastructure should be solid or big problems can erupt. I love creaky floors and stairs. I love old worn wood on hand rails and other surfaces. I dislike the too small closets, tiny kitchens, etc.

[NorthSideSox72]

The downside is character. There is something special about old homes. Of course the infrastructure should be solid or big problems can erupt. I love creaky floors and stairs. I love old worn wood on hand rails and other surfaces. I dislike the too small closets, tiny kitchens, etc.

Two other positives for an older home...

 

1. If bought cheaper, with some elbow grease and some investing, you can turn it into a value proposition and make serious bucks. There is risk in that too, of course.

 

2. Many homes built now are just not built well. Quality is poor. These homes will, in a decade or two, start to look pretty bad. That can effect the value when you want to sell it later, or even in the short run, for picky buyers. On the other hand, a house built in 1900, if its still in reasonably good shape, it probably will be for another few decades.

[southsideirish71]

Two other positives for an older home...

 

1. If bought cheaper, with some elbow grease and some investing, you can turn it into a value proposition and make serious bucks. There is risk in that too, of course.

 

2. Many homes built now are just not built well. Quality is poor. These homes will, in a decade or two, start to look pretty bad. That can effect the value when you want to sell it later, or even in the short run, for picky buyers. On the other hand, a house built in 1900, if its still in reasonably good shape, it probably will be for another few decades.

 

 

I bought my house a 1974 year old 4 bedroom colonial in a Gallagher and Henry subdivision a few years back. One of my brothers is a carpenter(odd that I would have tradesmen in the family being irish). I bought a house that needed some work and basically re did it. It took 3 years to redo it, and doing all of the work outside of the plumming with family saved me a ton of money. The house has some creaks and that, but its definately worth it. I have a big house in a wonderful neighborhood and I didnt have to spend the money that others did for the same product.

[Jenksismyhero]

Speaking of 'hidden gems,' I'm wondering if Elmhurst qualifies. I grew up in central illinois and just recently moved up here to go to law school. My gf and I were looking for places to buy because rent on the north side is ridiculous.

 

We looked at a lot of surrounding suburbs and Elmhurst, to me, seems like the greatest deal. It's a shortish commute (but still a commute) because its right where 290/294 meets and is a 15 min drive without traffic to 45 with traffic. The homes are both enormous and beautiful. It's an old area though, so it has some charm. The biggest thing was that we found smaller homes from 300-350k and up. They need a little work, but the homes around them are practically mansions. Little fixing up and I think the value would skyrocket. Anyone know anything about that area?

[southsideirish71]

Speaking of 'hidden gems,' I'm wondering if Elmhurst qualifies. I grew up in central illinois and just recently moved up here to go to law school. My gf and I were looking for places to buy because rent on the north side is ridiculous.

 

We looked at a lot of surrounding suburbs and Elmhurst, to me, seems like the greatest deal. It's a shortish commute (but still a commute) because its right where 290/294 meets and is a 15 min drive without traffic to 45 with traffic. The homes are both enormous and beautiful. It's an old area though, so it has some charm. The biggest thing was that we found smaller homes from 300-350k and up. They need a little work, but the homes around them are practically mansions. Little fixing up and I think the value would skyrocket. Anyone know anything about that area?

 

Elmhurst is a nice area. But you may have a cap on the investment in a small home there. Most of those types of homes are being bought by builders who really just want to flatten the house and plant a bigger version of it. So the land will increase, however there will be a cap due to the fact that its only for a builder to flatten it. The same is seen in Clarendon Hills and Hinsdale. At lot of the smaller homes are going for almost 500k just for a knockdown in Clarendon Hills. So if you are trying to flip it to a builder I wouldnt worry about fixing it up. It doesnt matter in the long run.