Property values are constantly moving up and down.
In most cases, property values appreciate in the long term.
But, in real estate there is always a certain amount of risk.
When your house appreciates you have a greater asset to borrow against, and you'll generate a bigger profit when you sell.
There are different reasons why property values in Chicago shift. So, how will you know what you're investing in right now will appreciate over time?
The most important aspect is that you select a real estate agent in Chicago who can identify the factors that affect local prices.
Many believe that the economy is the major factor impacting real estate appreciation.
interest rates, employment, business growth, government programs and a handful of other national determinants have a definite influence on your house's value.
However, your property's value and the aspects that play the most significant role in its appreciation are particular to the local Chicago economy and housing market.
Location in a community - Most people want homes in the regions with the most convenient places we go often or everyday, such as our schools, jobs, and shopping.
So these communities generally appreciate, or hold their value, best.
Real estate sales trends - How long are homes on the market? What was the selling price compared to the listing price? A lot of data can often be retrieved from public records, but a good agent with a login to the local MLS will usually provide a more complete picture.
Appreciation history - Have property prices gone up or down over the last 5-10 years? Is the community thought to be desirable because of its location or affordability?
The local economy - Are local businesses hiring? Have businesses moved into or away from an area? Is there a good mix of jobs in an area, or does it depend on just one industry? Is the blend of commercial and residential zoning changing?
Each of these factors plays a role.