Over time, the value of a house will fluctuate up and down.
Generally, home values appreciate in the long term.
But there is always a certain amount of risk in real estate.
When your house appreciates you have more resources to borrow against, and you'll generate a larger profit when you sell.
But how do you know what you're investing in now will appreciate over time? Property values in Chicago fluctuate for a variety of reasons.
Choosing a real estate agent in Chicago who can identify the factors that affect local prices is the most important element.
What is the greatest factor impacting real estate appreciation? Many believe that it's the economy.
there are some factors on a national level that influence your house's value: unemployment, interest rates, the stock market, and more.
However, your property's value and the features that play the biggest role in its appreciation are specific to the local Chicago economy and housing market.
Access to services - Being close to schools, work and amenities like shopping, restaurants and entertainment is a big deal to many buyers and will greatly influence home values.
So those regions usually appreciate, or keep their value, best.
Recent sales - Your REALTOR® should provide you with figures on the recent real estate sales in the areas that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the last 5-10 years, have home prices increased or decreased? Does location or affordability affect how desirable the community is thought to be?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a fair mix of work in an area, or does it depend on just one industry?
Each of these elements plays a role.