U.S. Home Values Experience Biggest Gain Since 2006

chicago new home values riseAccording to Zillow, Inc., U.S. home values rose 1.3 percent in the third quarter, which may not seem like a large amount, but this is the biggest increase since 2006. The average home value has risen from$153,800 to $151,800.
Home prices have been rising due to two main factors. First of all, the unemployment rate is finally beginning to decline, and as home prices rise, more buyers have to compete for a smaller supply of homes.
However, each metro area has its own rate of recovery. In terms of Cook County real estate, prices for large multifamily buildings have risen nearly 31 percent. However, prices on condos and single-family homes are taking a little longer to increase, though there are certainly positive trends in pricing. In Chicago, new home starts are also at a new high that is reminiscent of 2008 levels.
In the overall U.S. market, home values are expected to increase 1.7 percent in the next year. The rate of Chicago’s future real estate success will depend on factors such as the employment rate, the amount of new home starts and buyer interest in single-family homes.