Thursday, July 13, 2006

Price Reductions on House in Skokie

This house in Skokie still has not sold. Back on January 1st, 2006 the house was priced at 699K after a price reduction. I had written at the time "Despite its price reduction it is significantly overpriced. They should reprice it to 625K and see if it will sell."

The price was reduced from 699K to 649K on 5/11/06 and subsequently reduced from 649K to 599K on 7/02/06.


It located at 3821 Sugar Loaf in Skokie, IL. [Chicago suburb] MLS number of 06003346. According to ZipRealty it has been on the market for 190 days. No one has been living in the house for many months as the owners live in one of the Carolinas.

Previous Posts:

Falling Sign, Falling Price. (1/1/06)
Update: House For Sale in Skokie, IL (3/10/06)
Update: Seller Refuses to Lower Price (4/16/06)

Will it sell at 599K?

Probably not! They should reduce it once more to 549K and see if it sells.

21 comments:

  1. Just wild speculation on my part, but I bet the owners moved to the Carolinas and envisioned selling this house at a huge mark-up to finance their life there.

    A Redskins fan

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  2. Skokie, IL may see some declines. But Skokie doesn't really have the job market and growth that the DC area has. I doubt we will see anything similar in DC.

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  3. That house looks like a dump. No way it'll sell.

    Maybe for $180K, even at that, I'd have to really think about it.

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  4. WAY OVERPRICED! But you can't blame the owner for trying...

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  5. The house is in Illinois.
    They live in Carolinas.
    And the price is from California.

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  6. Weird. Postings (not comments regarding the postings) on this blog are almost exclusively about the city of Washington, where the blogger doesn't live, and sometimes about far-flug places that have nothing to do with the DC housing market.

    "housing markets are local. someone in or out of the market in Bend, OR has no influence on the market in Portland, ME." Get it?

    Now, how about some postings about the DC suburbs, where the vast majority of residents of the "DC Metro Area" live?

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  7. if a house sits on the market for 190 days, then there is one and only one problem.....it is overpriced. i swear, sellers need to go back to school and take Economics 101.

    no empathy for this lot.

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  8. It is weird that "David" lives in IL, but his blog says

    David
    Gender: male
    Industry: Technology
    Location: Maryland : United States

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  9. anon 10:07
    "It is weird that "David" lives in IL, but his blog says

    David
    Gender: male
    Industry: Technology
    Location: Maryland : United States "

    Maybe he moved to IL and forget to update his profile.

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  10. Anon 9:48
    "Now, how about some postings about the DC suburbs, where the vast majority of residents of the "DC Metro Area" live? "

    Maybe David Bubblemeter wants to show us other bubbicious towns. I find this post interesting. 9 months on the market and 100K price reduction and it still has not sold. I would find it interesting when this house finally sells and at what cost. It is also interesting that Skokie does not have the job growth that DC metro has but it's still overpriced.

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  11. at the same time a guy in DC is saying

    "Skokie, IL may see some declines. But Skokie doesn't really have the job market and growth that the DC area has. I doubt we will see anything similar in DC,"

    a guy in Skokie is saying

    "DC and those other cities that have seen massive runups may see some declines, but DC doesn't have the great [________] that Skokie has. I doubt we will see anything similar in Skokie."

    And there you have the paradox of the bubble. Its a bubble everywhere but in my area and on my street and at my address.

    Ah, wishing thinking.

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  12. Why do people lump together the "Carolinas" - they're two different states, and most parts of the two states feel like different states. It doesn't take a whole lot to add N. or S. in front of the Carolina.

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  13. "housing markets are local. someone in or out of the market in Bend, OR has no influence on the market in Portland, ME." Get it?

    Here try these local $500,000 houses now selling for $300,000 out in the D.C burbs...

    http://www.fredericksburg.com/News/
    FLS/2006/072006/07122006/204995

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  14. Because I forgot if it was south or North Carolina.

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  15. Anonymous said...
    "Just wild speculation on my part, but I bet the owners moved to the Carolinas and envisioned selling this house at a huge mark-up to finance their life there.

    A Redskins fan"

    Redskins, It sounds like you are relishing someone's misfortune --- or more accurately, miscalculation. Please tell me it ain't true! I had kinda put you one step higher than the regular bubblehead ...

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  16. interesting news from so cal in the LA Times:


    http://www.latimes.com/business/la-fi-homes13jul13,0,3318143.story?coll=la-home-headlines

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  17. jf said:
    "And there you have the paradox of the bubble. Its a bubble everywhere but in my area and on my street and at my address.

    Ah, wishing thinking."

    Alternatively, maybe that means that there aren't bubbles anywhere ... but rather just "froth" as Greenspan said.

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  18. My friend just bought a house in NoVa and will close by the end of this month. I guess his story is more relevant to the D.C. metro.

    The seller asked for $700K at the beginning of this year, couldn't sell it, so lowered the price to $675K, still couldn't sell it, lowered the price again to $650K. My friend 'low-balled' him for $600K, he accepted. Turned out this guy is an 'investor' who has at least 5 properties. He bought my friend's house at the end of 2004 with $550K, and rented it out in June 2005 for one-year lease with negative cashflow. Previously, my friend had tried to lowball one of the comps in the neighborhood, the other seller refused the offer and said he wouldn't sell his house for under $650K. But guess what, now all the comps for in the neighborhood will have to low their expectations because of this "investor".

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  19. Hey Fritz,

    Zillow only gives you $504k for that house...

    http://www.zillow.com/HomeDetails.htm?city=SKOKIE%20&state=IL&zprop=3521152

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  20. anon said:
    "But guess what, now all the comps for in the neighborhood will have to low their expectations because of this "investor"."

    Why? Sorry, it's not previous or future sales that drive what a house will sell for. It is what a willing and able buyer is prepared to pay for it and what a willing seller is prepared to accept for it. Just because this seller was under pressure to sell, doesn't affect anyone else who may wish to sell. They may decide to even hold off on selling for a couple years till the market picks up again.

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