What causes Chicago home prices to fluctuate?
Property values are forever in flux.
For the most part, property values appreciate in the long term.
But, in real estate there is always a certain amount of risk.
When your house appreciates you have a bigger asset to borrow against, and you'll generate a greater profit when you sell.
There are various reasons why property values in Chicago rise and fall. So, how will you be sure what you're investing in now will appreciate over time?
It's important that you go with a real estate agent in Chicago who can identify the factors that influence local prices.
A lot of people believe that the economy is the top factor impacting real estate appreciation.
It goes without saying that
interest rates, employment, job growth, government programs and quite a few other national factors have a definite effect on your home's worth.
But the most important issues that determine your home's value are particular to the local Chicago economy and residential market.
Access to services - Proximity to schools and work also have a major impact on many home buyers' choices.
So when it comes to retaining their value, these regions often appreciate much more reliably than areas lacking key features.
Recent sales - Your real estate agent should give you figures on the recent home sales in the areas that you're asking about. 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 past 5 to 10 years? Is the area considered desirable because of its location or affordability?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a nice mix of work in an area, or does it rely upon just one industry? Is the blend of commercial and residential zoning changing?
Each of these elements plays a part.
Identifying the factors that play into your home's value is important.
Get an evaluation of your house's value here
And if you have any questions, call me at (773) 938-2585 or e-mail me
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