WHICH NEIGHBORHOODS SHOW GREATEST APPRECIATION POTENTIAL? A Common Question Here in Chicago, Suburbs.
AS REAL ESTATE MARKETS BEGIN TO REBOUND, MOST DESIRABLE AREAS WILL LIKELY REBOUND MOST QUICKLY!
As our Team shows our clients homes, condos, and investment properties in all Chicago Neighborhoods and Suburbs, one question predominates, especially on potential buyers planning to live in their new home or condo, or own their investment property, an extended period of time -
"How much is the neighborhood in which this property is located likely to appreciate in the next XX years?"
During the housing boom of a few years ago, it was comparatively easy to project percentage appreciation in most neighborhoods here. At the tail end of the boom, appreciation figures often EXCEEDED those of earlier years.
Then, quickly, the bottom seemed to fall out, and homes and condos in some Chicago Neighborhoods and Surrounding Suburbs began to actually show DECLINES in average value - although many of the most prestigious Chicago Neighborhoods - such as The Loop, The Gold Coast, and Lincoln Park, showed continued price increases, albeit at a slower pace.
In essence, future appreciation, like future prices for stocks or commodities, is hard to accurately predict. However, there are certain guidelines we suggest to our clients considering properties in different neighborhoods or suburbs -
1. How easy is transportation? In the City of Chicago, how close is PUBLIC transportation? Many city areas very close to CTA El Lines have had consistent appreciation over the years, even in leaner markets. A real find might be a city neighborhood close to BOTH CTA lines AND major area expressways. Chicago Neighborhoods such as The Loop, West Town, Logan Square, Irving Park, Jefferson Park, Norwood Park, and Edison Park all are close to both public transit and area expressways.
2. How desirable are neighborhood amenities? Especially for young people, proximity to neighborhood restaurants, clubs, and coffee houses is important. Indeed, neighborhoods with one or several Starbucks on the corner prove most desirable, because of the cache they seem to offer. For families raising children in the suburbs, nearby grocery shopping is important. Closeness to parks, and Lake Michigan Beaches, is a draw for all age groups.
3. How walkable is the neighborhood? Naturally, neighborhoods offering the appearance of safety appeal to many.
4. How are neighborhood schools? For most homebuyers, this is or eventually will be a prime concern. City or Suburban properties in the top school districts show the highest consistency in price appreciation long-term.
5. What kind of business or industry exists in the neighborhood or suburb? Obviously, loud or odorous businesses decrease desirability. Those with high concentrations of professional offices may make a neighborhood more desirable. For many, living and working in the same or nearby neighborhood is a big plus.
6. What about intangibles? This would include things like proposed new development in the neighborhood. Or, proximity to other desirable areas or neighborhoods.
For a long time, many of our clients have found the most predictable levels of appreciation in neighborhoods that have most of these desirable elements, and next to the "hot" neighborhoods - not necessarily in the hot neighborhoods themselves.
Of course, past appreciation levels are not always predictive of future neighborhood appreciation - especially in today's shifting market. But they might offer a road map.
Always, call us for specific, up-to-date information and price trends on any Chicago Neighborhood or Suburb.
For more, read Ellen James Martin's article in last Friday's Chicago Tribune. Here, Real Estate Broker and President of the National Association of Exclusive Buyer Agents, Barry Nystedt, offers his tips.
DEAN MOSS & DEAN'S TEAM CHICAGO
