Home prices are forever in flux.
Over a long enough period of time, property values usually go up.
But, in real estate there is always a certain amount of risk.
When your property appreciates you have a larger asset to borrow against, and you'll generate a higher profit when you sell.
Property values in Highland Lakes area move up and down for numerous reasons, so how will you know what you're investing in now won't depreciate the day after you close?
The most important factor to consider is that you go with an agent in Highland Lakes area who knows the factors that drive local prices.
Many believe that the economy is the major factor affecting real estate appreciation.
mortgage rates, employment, business growth, government programs and a handful of other national determinants have a measurable impact on your property's value.
However, your house's value and the components that play the most significant role in its appreciation are particular to the local Highland Lakes area economy and housing market.
Access to services - Convenient access to schools, jobs 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 retaining their value, these areas typically appreciate much more reliably than areas lacking key features.
Recent sales - Your REALTOR® should provide you with information on the recent real estate sales in the neighborhoods that you're asking about. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have house prices gone up or down over the last 5 to 10 years? Is the area thought to be desirable because of its location or affordability?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a good combination of jobs in an area, or does it count on just one industry?
These items play a part.