If you're contemplating purchasing a home in the Chicago area, you might be concerned about rising mortgage rates, soaring home prices, and ongoing affordability issues. However, it's crucial to look beyond these immediate market factors and consider the long-term advantages of homeownership.
Imagine this: if you know individuals who bought homes 5, 10, or even 30 years ago in the Chicago area, you'll likely struggle to find someone who regrets their decision. Why is that? The answer lies in how home values appreciate over time and how this, in turn, contributes to the growth of personal wealth. This is precisely why 76% of respondents in a recent Fannie Mae survey believe that buying a home is a secure investment.
Let's delve into how the piece of the homeownership puzzle related to home price appreciation can accumulate substantial benefits over the years.
Home Price Growth Over Time
The following map, utilizing data from the Federal Housing Finance Agency (FHFA), illustrates the remarkable price increases over the past five years in various regions of the Chicago area:
When examining the percentage change in home prices, it's evident that, on average, home prices in the Chicago area have surged 54% in just five years.
While specific regions may slightly surpass or lag behind this average, overall, there has been substantial appreciation in home values in a relatively short period. If we extend this timeframe, the advantages of homeownership and the significant gains homeowners have realized over the years become even more apparent:
The second map showcases a nationwide average of over 297% home price appreciation over roughly a 30-year span.
This national average underscores that the typical Chicago area homeowner who purchased a home three decades ago witnessed their property's value nearly triple over that time. This substantial growth plays a pivotal role in why many homeowners who made their housing investments years ago remain content with their choices.
Moreover, despite ongoing speculations of a housing market crash, it hasn't materialized. In fact, experts anticipate that home prices will continue their upward trajectory for the foreseeable future.
Bottom Line
If you're pondering the wisdom of purchasing a home in the Chicago area today, it's essential to focus on the enduring benefits associated with homeownership. When you're prepared to embark on your homebuying journey, don't hesitate to reach out and start a conversation with us. We're here to guide you towards a secure and rewarding investment in your Chicago area home.
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