There's no doubt that the residential real estate market is still slumping in areas. Many of the hardest hit areas are older communities closer to the city where homes are not kept "up to par" with what is out in the new development or newly constructed homes and even rehabbed homes.
New competition with emerging housing developments and condo conversions around Chicago's near West Side Loop and southwest suburbs including Lemont, Lockport, Romeoville, Bolingbrook, Homer Glenn, Elgin and New Lenox are amongst the hottest areas right now with homes ranging in the low $200K to upper $300K's (great deals in REO and foreclosed homes in these areas). All conveniently located along the I-355 extension, (the new Veterans Memorial Tollway (I-355) from I-55 through Will County to I-80) but are still far being 40 minutes outside of the Chicago Loop.
Affordability and getting a great “deal” is ranked a top priority with my clients. Mostly young professionals, the most regularly asked question is “where can I can find "brand new", move-in ready or completely rehabbed homes and townhomes?” They are even willing to pay the extras in monthly assessment costs and longer commute times to have that lower monthly mortgage.
Frankly, I cannot advise against newer developments or rehabbing when the existing homes are reaching 50+ year's in age, are higher priced (some by $50+K) and homeowners have not made any updates or changes since they were built.
My suggestion has always been location, location, location and of course mass transit availability. With the population growth (estimated to go over nine or ten million by the year 2020 according to census) and fluctuating gasoline prices, forecasters see a drastic adjustment to commuters travel in the very near future. They estimate that we will see many more "green" cars on the road vs. the 20% market share of sales in SUV and van sales, a possible new transit system and expansion of existing roads and highways.
And a quick note, just because new retail is rising out of the ground does not mean instant success and equity growth in your neighborhood. Although it’s great sales tax income for the village, I advise clients to examine their lifestyle and where they see themselves in 5 years. Statistically homeowners stay in a home 5-7 years before moving due to outgrowing the home or the need to relocate for job or other reasons. Therefore, homebuyers should review with their Realtor every aspect of their home purchase, the location, commute times, METRA, PACE or CTA transit lines, taxes, municipal improvements, schools, HO assessments and think down the line what changes may take place in themselves and the area they pick and if they are willing to stay awhile.
There are plenty of opportunities for buyers and young professionals that want to live nearer to Chicago and close to mass transit (METRA, CTA, PACE) including Chicago's Near West Side, Greek Town, Taylor Street & Medical District, but they do come with the higher city tax burden.
My top picks for affordable homes in the near western suburbs are: South Berwyn (2 & 3BR move in ready homes from $260K-$300K and rehabs below $200K) Brookfield (2-3 BR from Low $200K's), Westchester (2BR from the low to mid $200K), La Grange Park (2BR from mid to upper $200K), Downers Grove (2-3 BR from mid $200 to $300K) Illinois. Each of these communities offer affordability, future growth, great schools and low real estate taxes.
My top picks for affordable homes in the farther western suburbs are: Romeoville and Bolingbrook (Short Sales and REO 2 & 3 BR starting from low $100k+ and low $200K in Popular Brookwood Estates). And if you ever wanted to live in Naperville but thought you could not afford it - 1st time buyers are sure to get a deal in a great school district (Naperville 204) in the Cedar Glen subdivision where 3BR homes start in the mid $200K
Even though the market lately leaves many of us guessing, the recent changes and the injection from the government securing interest in U.S. banks, we are starting to see more and more buyers taking action. And with mortgage rates climbing slowly above 5%, many buyers are making sure they take advantage of this opportunity now as well as the $8,000 homebuyer credit which may not last long once the market picks up.
My area picks for pre-rehab homes: Top picks for pre-foreclosure and REO’s can be found in North & East Berwyn, Cicero and Lyons where the average price of these types of homes start in the low $50-100K with an average investment to rehab $30-$50K. Cicero, IL is funding buyers through a government program offering incentives for homebuyers more on the program here.
My picks for new construction homes and townhomes are: Shorewood, Joliet, Bolingbrook, Romeoville and Elgin where prices start in the low $200K's for 3-4 bedroom..
The house deal's are out there, you just have to HUNT for them!
Christine is Team Leader of the "House Hunter's" Team at GOBBER-GMAC Real Estate. Call her today to find your next home at 708/369-8094
More information can be found on her website at:
http://www.eHouseHuntOnline.com
Google - Christine Moscinski, Realtor
Sources: www.enews20.com - www.Illinoistollway.com - www.nipc.org