Ken's Naperville Real Estate Blog : LEHIGH STATION. WHAT WENT WRONG?

LEHIGH STATION. WHAT WENT WRONG?

My wife and I rented a home in a subdivision named Lehigh Station last year.  Lehigh is in Aurora, right on the border with Naperville. 

The subdivision was brand new, built behind a Meijer and near a shopping mall.  It was probably only 50% built when I moved in. 

Originally priced between $300-$350K, the homes were attractive on the outside.  Brick, with many windows.  Inside, the models were all very similar.  But they were decorated beautifully.  Stainless, granite. And they all had that new house smell. 

But I was a renter.  And I wasn't the only one.

Many of the homes were vacant.  The subdivision always seemed empty.  Few people outside.  Little mingling amongst neighbors. 

Where were the barbeques?

Yet the building continued.  And continued.

I still watch the market activity closely at Lehigh Station, and it highlights to me the dangers of buying new construction.

There are currently 16 homes for sale on the MLS in Lehigh Station.  None are under contract.

The prices range from $239,900 (a pre forclosure) all the way to $361,000.

They are still overpriced.

The builder is holding inventory.  Many of the homes remain vacant.  More and more renters.

And none are under contract. 

There are people that bought at Lehigh that are losing their shirts.  They cannot afford to sell.  100% financing and interest only loans were the choice for many of these buyers.

Short sale or forclosure will be the option for many.

It is sad.  I still have friends that live there.

So when you are shopping for a home, don't fall in love with the new house smell...

And before you buy anything, call a real estate agent that you trust.

Ken

http://www.kensfeaturedhomes.com/

 

 

Comment balloon 3 commentsKen Tracy • April 28 2008 12:50PM

Comments

Its funny when emotions are involved, we can convince ourselves of anything! Especially a bad purchase.
Posted by Jeff Fullmer, Real Estate Investor/Financier (FM Properties) over 9 years ago

Hi Jeff.  Thanks for stopping by.  I think certain areas are under more pressure than others. 

Ken

Posted by Ken Tracy, Helping clients buy and sell since 2005 (Keller Williams Realty Infinity) over 9 years ago

Anyone that purchased a home in 2005/2006 bought at the peak of the market.  The circumstances at Lehigh are going on in just about every some division, both new construction and existing homes.  Those that purchased homes in Stonebridge in 2005, for example, purchased at the peak, and are also losing their shirts.  They have way more upkeep than anyone that purchased a new construction townhome in 2005 (you have to factor those costs in too).  Lehigh Station is in a fantastic location and prices will come back up.  Neighbors are engaged and are planning social functions together all the time!  Just thought you should know. 

Posted by Lehigh Owner almost 8 years ago

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