Over time, the worth of a property will go up and down.
For the most part, home values appreciate in the long term.
But, of course, in real estate there is always a certain amount of risk.
When your property appreciates you have a more valuable asset to borrow against, and you'll create a greater profit when you sell.
Property values in Chicago go up and down for numerous reasons, so how do you know what you're investing in now won't depreciate the day after you close?
It's important that you pick a REALTOR® in Chicago who is familiar with the factors that influence local prices.
Many think that the economy is the number one factor affecting real estate appreciation.
mortgage rates, employment, job growth, government programs and numerous other national determinants have a definite effect on your house's worth.
However, your house's value and the things 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 districts with the best and most convenient features, such as our schools and jobs.
So those areas typically appreciate, or hold their value, best.
Recent sales - Your REALTOR® should provide you with figures on the recent home 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.
Appreciation history - Have house prices risen or declined over the past 5-10 years? Is the community thought to be desirable because of its location or affordability?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a fair blend of business in an area, or does it rely upon just one industry? Is the mix of commercial and residential development changing?
All these play a part.