What drives property values in to move up and down?
Over time, the worth of a home will go up and down. Over a long enough period of time, home values , by and large, appreciate. But, of course, there are no guarantees in real estate.
When your property appreciates you have a larger asset to borrow against, and you'll see a greater profit when you sell. There are numerous reasons why property values in rise and fall. So, how will you be sure what you're investing in right now will appreciate over time? Choosing a real estate agent in who knows the factors that drive local prices is the most important element to consider.
Many assume that the economy is the top factor impacting real estate appreciation. Clearly, there are quite a few issues on a national level that change your property's value: unemployment, mortgage rates, the stock market, and more. But the most significant issues that figure your home's value are specific to the local economy and housing market.
Location in a community - Many consumers wish to live in regions with the most accommodating characteristics for households to thrive, like a close proximity to schools and work. So when it comes to keeping their value, these areas typically appreciate much more reliably than areas lacking key features.
Recent sales - Your REALTOR® should give you information on the recent home sales in the regions that you're interested in. You'll want to know average time on market, selling versus listing price and more.
The appreciation history - Is the area thought to be desirable because of its location or affordability? Have house prices risen or declined over the past 5-10 years?
Local economy - Is there a fair mix of business in an area, or does it rely upon just one industry? Have companies moved into or away from an area? Are local businesses hiring? Each of these elements plays a part.
