Property prices are continually changing.
Generally, home values appreciate in the long term.
But, of course, in real estate there are no guarantees.
When your house appreciates you have a more valuable asset to borrow against, and you'll generate a larger profit when you sell.
But how will you know what you're buying today will appreciate over time? Property values in Chicago fluctuate for a variety of reasons.
It's important that you choose a REALTOR® in Chicago who understands the factors that influence local prices.
What is the number one factor impacting real estate appreciation? Many assume that it's the economy.
interest rates, employment, business growth, government programs and many other national determinants have a noticeable impact on your house's value.
However, your property's value and the components that play the biggest role in its appreciation are particular to the local Chicago economy and housing market.
Access to services - People typically want homes in the districts with the most convenient amenities, like our schools and work.
So these communities generally appreciate, or carry their value, best.
Recent sales - Your agent should give you stats on the recent home sales in the neighborhoods that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have property prices risen or declined over the last 5-10 years? Is the neighborhood considered desirable because of its location or affordability?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a fair blend of business in an area, or does it rely on just one industry?
These items play a role.