Downers Grove Makes Crain's List of Top Real Estate Gainers

Downers Grove 60515 was the only suburban ZIP code to snag a spot among the 10 Chicago area neighborhoods to see the biggest hikes in single-family housing prices in the past 10 years, according to a June 2 report in Crain’s Chicago Business. 

Downers Grove ranked ninth on the list with a 32.5 percent increase in single-family home prices between the fourth quarter of 2000 and the fourth quarter of 2010, according to the report. The statistics were provided by Fiserv of Brookfield, WI. Every other ZIP code on the list represented a neighborhood of Chicago. The Uptown/Andersonville neighborhood topped the list with a 39.3 percent increase.

“This shows the stability of downtown Downers Grove and the surrounding residential areas,” said Linda Kunze, downtown manager. “These favorable articles reflect the successful efforts of the Downers Grove Downtown Management Corp., the Economic Development Corp., the Downers Grove Area Chamber of Commerce and Industry, and the commitment of the Village Council and staff toward the Downers Grove community.”

Realtor Elena Salman Falco of Grove Realtors said the local real estate run-up doesn't surprise her. "When I think back 10 years ago to when I first started in real estate, you could buy a really nice house for $150,000. Now, even with the 2008 crash in the market, $150,000 buys you a teardown."

Homeowners who bought in the late '90s and didn't cash out or refinance "should be sitting on a lot of equity" today, Falco said.

She recalled doing "something very bold" when she paid $145,000 for a lot in 2000. "And the prices just continued to rise," she said. "The lot two doors down sold for $410,000." 

Prices of existing homes also spiraled during the past decade. "I think the local market peaked in the spring of 2006," Falco said. "We saw such dramatic change from 2000 to 2006," with hikes of 10 or 20 or even 30 percent a year not uncommon.

However, "real estate should increase on average 3 to 5 percent per year over 30 years," she said. "The market self-corrected."

 While building virtually ceased after the 2008 crash, Falco said she got a call just  yesterday from builder who is looking to build the first spec house in Downers Grove in two years.

"There are still buyers looking for lots in the mid $100,000s to high $200,000s," she said. "I've been noticing this spring as I'm driving around Downers Grove a lot more construction going on."

And there are other encouraging signs. "I did just sell a house that got three offers in a day and someone else was calling me consistently to see if the deal would stick because another wanted to buy that house," Falco said.

While reports predict a continuing decline in real estate, she believes the Downers Grove market is stabilizing. "I have a lot of buyers right now. It can't get a lot lower, but it is still higher than it was 10 years ago." 

"I don't see the market increasing, but I don't see it falling out anymore," Falco said. "We have run out of good supply in the $250,000 to $350,000 price range that an average homeowner in Downers Grove can afford."

"Downers Grove is still a great town," she said. "People want to live here because of the schools, the proximity to the train and the city, and its relatively low taxes."

The  town also remains attractive to businesses, Kunze said. The central business district, which falls within the 60515 zip code, stands at 98 percent occupancy and “we are  currently working with several new businesses looking to relocate to downtown Downers Grove.”

Among the new businesses that have or will be opening downtown are TKDA, a 100-year-old engineering and architectural firm, at 5151 Mochel Drive; Real Estate Research Co. at 1000 Maple; Medi Drapes, a medical supply company, at 1000 Maple Ave, and IMS, a credit card processing firm, at 5122 Main St., Kunze said.

Other new businesses that have opened or soon will open in the downtown neighborhood are Athletes of Dance at 923 Curtiss St., Spice Merchants at 5225 Main St. and PAWsitively Balanced at 926 Warren Ave.