Over time, the value of a house will fluctuate up and down.
In most cases, house values appreciate in the long term.
But, of course, in real estate there are no guarantees.
When your home appreciates you have more equity to borrow against, and you'll create a better profit when you sell.
But how will you be sure what you're investing in today will appreciate over time? Property values in Chicago vary for a variety of reasons.
The most important aspect is that you go with a REALTOR® in Chicago who is familiar with the factors that drive local prices.
A lot of people assume that the economy is the biggest factor impacting real estate appreciation.
mortgage rates, employment, job growth, government programs and several other national factors have a definite influence on your house's value.
However, your home's value and the components that play the most significant role in its appreciation are particular 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 when it comes to keeping their value, these communities generally appreciate better than others.
Recent sales - Your REALTOR® should provide you with figures on the recent home sales in the regions that you're asking about. 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 property prices risen or declined? Does location or affordability affect how desirable the area is thought to be?
The local economy - Are local businesses hiring? Have businesses moved into or away from an area? Is there a fair combination of job types in an area, or does it depend on just one industry? Is the mix of commercial and residential zoning changing?
All these play a role.