What causes home prices to fluctuate?
Real estate prices are continually changing. Usually, house values appreciate in the long term. But, in real estate there is always a certain amount of risk.
When your property appreciates you have a greater asset to borrow against, and you'll produce a better profit when you sell. There are different reasons why property values waver. So, how do you know what you're investing in right now will appreciate over time? It's important that you choose an agent who recognizes the factors that influence local prices.
A lot of people guess that the economy is the most important factor affecting real estate appreciation. Clearly, mortgage rates, employment, job growth, government programs and a handful of other national determinants have a noticeable impact on your home's value. But the most influential issues that determine your property's value are particular to the local economy and housing market.
Location in a community - People typically want homes in the areas with the most accommodating places we go often or everyday, like our work and schools. So these areas consistently appreciate, or retain their value consistently, year to year.
Recent sales - Your REALTOR® should provide you with stats on the recent home sales in the neighborhoods that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the last 5 to 10 years, have property prices increased or decreased? Does location or affordability affect how desirable the area is thought to be?
Economic factors - Have companies moved into or away from an area? Are local companies hiring? Is there a good blend of work in an area, or does it rely upon just one industry? These items play a role.
Recognizing the factors that influence your house's financial worth is important. Visit this link
for an evaluation of your property's value. Have any questions? Please feel free to call us at (203) 814-8247 or e-mail us