Is Oak Park on the road to economic recovery?

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Permalink Reply by John Metzger on December 4, 2009 at 11:03am

Don't know if I'd call it recovery. In regard to the remodeling that has been happening of late, it's just smart business. Shut down while sales are lower...There's less overall loss that way, and when things get back on track, you're ready to go.

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Permalink Reply by Brian Plain on December 4, 2009 at 11:32am

My crystal ball isn't any better than anyone else's, so your guess is as good (or bad) as mine!

I see it as a great opportunity if you keep long-term perspective and I think that is what we're seeing from the very events that you mentioned Ryan.

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Permalink Reply by Russ M on December 4, 2009 at 12:02pm

I think the economy is turning around in the sense that people and businesses aren't panicking anymore. Much of the economic malaise is self inflicted. What I do see is that as people realize the sky isn't falling they are spending more, however, I think everyone was so shell shocked from the downturn whether it is real estate or the broader economy that everyone is taking a hard look at what they need versus what they want.

"Big pimpin" is out and living frugally and in your means is in. Everyone is downsizing their lifestyles. However, I do think people are going to continue to spend money on little treats but I would not want to be trying to sell higher cost luxury items these days.

The smart businesses I think will capitalize on this new attitude of the consumer. I also think people are trying to shop locally and more sensibly.

I do hope with the restaurants being renovated, it will bring more people out. I know I have not gone to the Maple Leaf just because I don't like the decor. The food could be great, but there is nothing about the interior of that place that makes me want to go there. The same for Eriks.

I think many of the older businesses are finally realizing that you have to keep your interior fresh and current if you are going to stay relevant with younger consumers. You can provide the best service and food, but if people ignore your place because your awning is from 1970 and you have ymca banquet hall dining chairs, all the other stuff doesn't matter.

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Permalink Reply by Becca on December 4, 2009 at 11:14pm

I think that the new stores/businesses opening up could potentially mark the rebirth of our downtown. I wrote a column for the Wednesday Journal about how I thought the old businesses closing could actually be a good thing because new businesses could help revitalize downtown. It seems like there's a good chance I might actually be right. Here's the column: Vacancies Bring New Opportunities

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Permalink Reply by OakParkGirl on December 9, 2009 at 1:48pm

So being I am still recovering from the shock of my HORRIBLE appraisal I felt the need to chime in. I think up until now I had believed that because the value of my place never really skyrocketed when everything else did, that the value would also not go DOWN a ton either. Man was I wrong. I bought my place for $183 in 2004, it appraised for $200K in 2006 when I got a second mortgage to pay for my new balcony and upgrade appliances. So I invested 16K in my balcony, $10K in all new appliances, and then lost $24K of my original value in addition. So ignoring the $200K appraisal value, I've lost $50K between upgrades that bought me nothing and the lost value. OUCH!!

Other than that I was feeling like things were still turning around a bit. New businesses, stores and Starbucks always full...

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Permalink Reply by Brian Plain on December 9, 2009 at 2:27pm

Sorry to hear about the apprasial. I'm going through the same refi process right now myself and I'm not optimistic about our chances either.

Unfortunately, the market cycles don't care about our personal life cycles! This too shall pass though, it is just a matter of when and how quickly...

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Permalink Reply by Russ M on December 9, 2009 at 3:18pm

Appraisals are the bane of my existence right now (mortgage lender). However, don't put too much stock in them. Yes, it sucks if it kills your refinance, but appraisals for the most part are the opinion of one person and a person who is under a lot of pressure to not inflate values. In the past we had a problem with appraisers inflating values, but now we have a problem with them being too conservative.

It also depends on how good the appraiser is. I recently had a client where I ordered one appraisal and quickly realized the appraiser didn't know the area once I got it back. I ordered a second appraisal and this one appraised where both me the and my client thought it should.

In addition, depending on if you have a Fannie or Freddie Mac owned loan, your appraisal may not be all that important. There are two loan programs that allow the lenders to either 1) waive the appraisal altogether or 2) if the appraisal comes up short, the lender can still do the transaction even if the value is down.

It is a bit complicated to explain on here, but if your loan officer hasn't discussed these programs with you, find a new loan officer (just call me...).

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Permalink Reply by John Metzger on December 9, 2009 at 4:34pm

I wonder if you can successfully use your new appraisal to reduce your property taxes a bit.



OakParkGirl said:

So I invested 16K in my balcony, $10K in all new appliances, and then lost $24K of my original value in addition. So ignoring the $200K appraisal value, I've lost $50K between upgrades that bought me nothing and the lost value. OUCH!!

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