What determines a home's value? As adult Americans, we probably enjoy a greater level of control over our own destiny than any other society in the world. Because we are used to such a high degree of control, many of us may find it disturbing that the value of our largest asset; our home, is not directly within our control, and by no means guaranteed. There are two components to a home's value: 1. Internal conditions and 2. External conditions. The internal conditions are largely under the homeowner's control; these are the things a homeowner can do to enhance the value of their home (maintain, repair, remodel, update fixtures/systems etc.) and in most cases, these actions contribute substantially to a home's value. The second component of a home's value: external conditions are not as controllable. These conditions range from a neighbor's poorly maintained property to the more intangible "social standing" of your community or even your neighborhood. In a very broad view, the success of the Northwest Suburbs relies almost completely on Chicago's standing as an international center of business. A major factor in the value of a home lies in the economic concept of "Supply and Demand". In the "Chicago area" we enjoy one of the healthiest housing markets in the country. The phenomenal job market offered by the city and it's surrounding suburbs is the main reason for the above-average housing market health. Our proximity to the city and the easy access to it provided in part by the Metra train line running through the Northwest Suburbs helps keep our area in demand. However, the Northwest Suburbs offer many housing opportunities to an interested homebuyer. What is it that causes someone to settle in our village? There are surely different reasons for different people, but the "social standing" or "reputation" of a suburban town or village plays a large part. The universal law of "Supply and Demand" is a large part of the "External Conditions" that effect property values.

Park Ridge enjoys a high social standing among the Northwest Suburbs. It is clearly reflected in their property value. The high regard for Park Ridge is at least, partly based on perception. After all, how much do outsiders know about the internal workings and services of Park Ridge? We might assume it is very little. The perception is more likely based on the look and feel one perceives as they visit or travel through the town as well as what they hear from other people. The things that effect the perception of a town are difficult to control. In fact, they can get out of control before you know it. When it comes to towns, "bad press is bad news". We are all familiar with the story of the Des Plaines parking garage that was a white elephant as soon as it was built. They endured a backlash that effected their reputation for many years. Fortunately, the parking garage is being replaced by what looks like a beautiful library certain to add to Des Plaines' reputation and appeal. We do not mean to disparage Des Plaines, in fact, their luxury condos are famous among the Northwest Suburbs. The point is: the things that create the look and feel of a town require public involvement and support. Expansion, redevelopment, and maintaining what we have, costs money. Perhaps more than we may think it should but these things are all vital to maintaining the "look and feel" of our village, thereby affecting our reputation, thereby affecting our property values. Without a demand for our homes and business space, we lose considerable control over the external conditions that make up a good part of the value of our homes.

1999 has, so far, proven to be a wonderful year for property values. More people have been interested in moving into Mount Prospect than people interested in moving out. This creates a high demand for our homes, driving prices up more sharply than we might otherwise expect. This scenario (historically) will not always be the case. As residents of Mount Prospect, our goal should be to maintain the demand for our community. Anyone who plans on selling their home someday as well as those choosing to buy a home in Mount Prospect will certainly be grateful that we took an interest in our community.