Real estate prices are forever in flux.
Over a long enough period of time, house values , for the most part, go up.
But there are no guarantees in real estate.
When your home appreciates you have a more valuable asset to borrow against, and you'll produce a larger profit when you sell.
Property values shift for numerous reasons, so how will you know what you're purchasing this year won't depreciate the day after you close?
It's critical that you choose a REALTOR® who knows the factors that affect local prices.
A lot of people assume that the economy is the most critical factor impacting real estate appreciation.
It goes without saying that
mortgage rates, unemployment, job growth, government programs and many other national factors have a noticeable effect on your property's worth.
However, your property's value and the factors that play the biggest role in its appreciation depend on the local economy and housing market.
Access to services - Being close to schools, employment and amenities like shopping, restaurants and entertainment is a big deal to many buyers and will greatly influence home values.
So when it comes to keeping their value, these communities typically appreciate better than others.
The latest home sales - You should receive figures on the recent real estate sales in the neighborhoods that you're interested in from your agent. You'll need to learn things like time on market and seller discounts.
Appreciation history - Have home prices risen or declined over the last 5-10 years? Is the neighborhood considered desirable because of its location or affordability?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a fair blend of job types in an area, or does it rely on just one industry? Is the blend of commercial and residential zoning changing?
These items play a part.