Home values are constantly moving up and down.
Over a long enough period of time, house values typically go up.
But, of course, in real estate there are no guarantees.
When your property appreciates you have more resources to borrow against, and you'll produce a higher profit when you sell.
Property values in Highland Lakes area fluctuate for different reasons, so how can you be sure what you're investing in this year won't depreciate the day after you close?
The most important element is that you go with a REALTOR® in Highland Lakes area who can identify the factors that influence local prices.
A lot of people guess that the economy is the number one factor impacting real estate appreciation.
interest rates, unemployment, job growth, government programs and a lot of other national determinants have a measurable influence on your house's worth.
However, your home'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 - Many consumers want to live in areas with the most convenient components for homes to succeed, like a close proximity to schools and work.
So when it comes to keeping their value, these regions typically appreciate much more reliably than areas lacking key features.
Recent home sales - What's the time on market? What was the final sales amount compared to the listing price? A lot of data can often be obtained from public records, but a good agent with access to the local MLS will often be able to provide a more complete picture.
Appreciation history - Have home prices increased or decreased over the last 5-10 years? Is the area believed 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 mix of job types in an area, or does it count on just one industry?
Each of these factors plays a role.