Over time, the worth of a home will fluctuate up and down.
Over a long enough period of time, property values usually go up.
But, in real estate there are no guarantees.
When your home appreciates you have a bigger asset to borrow against, and you'll make a higher profit when you sell.
But how do you know what you're buying presently will appreciate over time? Property values in Chicago vary for different reasons.
It's imperative that you choose an agent in Chicago who can identify the factors that affect local prices.
A lot of people guess that the economy is the most crucial factor affecting real estate appreciation.
It goes without saying that
there are a lot of factors on a national level that adjust your home's value: unemployment, mortgage rates, consumer confidence, and more.
But the most important things that figure your house's value are specific to the local Chicago economy and housing market.
Access to services - Being close to schools, employment and amenities like shopping, restaurants and entertainment is important to many buyers and will greatly influence home values.
So those communities often appreciate, or hold their value, best.
Recent sales - Your real estate agent should give you facts and figures on the recent real estate sales in the regions that you're interested in. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the past 5-10 years, have home prices gone up or down? Does location or affordability affect how desirable the area is thought to be?
Local economy - Is there a fair blend of job types in an area, or does it rely on just one industry? Have companies moved into or away from an area? Are local companies hiring?
These items play a part.