good dolphin wrote:
somehow a few people found a way to make money on real estate in such difficult market
https://www.chicagobusiness.com/crains- ... rd-profitsSo I listened to the podcast and here are some nuggets.
People are selling their home for $47k more than they paid on average (but that isn't accounting for upgrades and money people put into their home outside of their initial purchase). They point out that for much of the last decade Chicago home owners were losing money when they sold due to the slower recovery.
Also, that $47k number isn't that great. People in my neighborhood net more than that selling a home 2-3 years after initial purchase and that's with likely lower initial purchase prices than what you would find in the Chicago area. I went under contract on my home in early 2018. If I was to sell it today, 3 years alter, getting only $47k above what I paid for it means I need to fire my realtor given what's happening in my housing market. My market is unique so let's look at the rest of the country.
The same year a Chicago seller could expect $47k profit, the national average was $75k. Chicago's market is one that is below average in just about every metric.
https://www.prnewswire.com/news-release ... ion%20high.
Quote:
ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released its second-quarter 2020 U.S. Home Sales Report, which shows that home sellers nationwide realized a gain of $75,971 on the typical sale, up from the $66,500 in the first quarter of 2020 and from $65,250 in the second quarter of last year. The latest figure, based on median purchase and resale prices, marked yet another peak level of raw profits in the United States since the housing market began recovering from the Great Recession in 2012.
The typical $75,971 home-sale profit represented a 36.3 percent return on investment compared to the original purchase price, up from 34.5 percent in the first quarter of 2020 and from 33.7 percent a year ago, to another post-Recession high.
Uh, so you are taking the average gain in Chicago and comparing it to your “baller” ozarkaplex hood?
You see the fallacy here? I am sure you have had nice appreciation in your property in the past three years, and I am sure your area is a nice area, baller if you will.
That said, there are baller people in Chicago who have gained 3-4 mill on their house in three years. Let’s keep apples to apples.