U.S. Home Values Experience Biggest Gain Since 2006

October 28, 2012

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.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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