Over time, the worth of a home will fluctuate up and down.
Over a long enough period of time, home values almost always go up.
But, of course, in real estate there is always a certain amount of risk.
When your property appreciates you have more equity to borrow against, and you'll produce a better profit when you sell.
Property values in Highland Lakes area waver for various reasons, so how will you know what you're investing in this year won't depreciate the day after you close?
The most important part is that you select a REALTOR® in Highland Lakes area who recognizes the factors that drive local prices.
The economy is believed to be the major factor affecting real estate appreciation.
mortgage rates, unemployment, business growth, government programs and several other national determinants have a definite influence on your property's value.
However, your home's value and the aspects that play the biggest role in its appreciation depend on the local Highland Lakes area economy and housing market.
Access to services - Many of us choose to live in regions with the best and most convenient characteristics for homes to succeed, such as a close proximity to schools, jobs, and work.
So those communities consistently appreciate, or retain their value, best.
Recent sales - Your REALTOR® should give you reports on the recent real estate sales in the regions 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 home prices risen or declined? Does location or affordability affect how desirable the community is thought to be?
Economic factors - Have businesses moved into or away from an area? Are local companies hiring? Is there a fair mixture of business in an area, or does it rely upon just one industry?
All these play a part.