Over time, the worth of a home will go up and down.
Typically, home 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 bigger asset to borrow against, and you get a bigger profit when you sell.
There are various reasons why property values in Highland Lakes area move up and down. So, how will you know what you're purchasing right now will appreciate over time?
Choosing an agent in Highland Lakes area who is familiar with the factors that drive local prices is the most important part.
The economy is believed to be the number one factor affecting real estate appreciation.
It goes without saying that
there are a lot of issues on a national level that adjust your property's value: unemployment, interest rates, quarterly earnings reports, and more.
However, your property's value and the factors that play the biggest role in its appreciation are particular to the local Highland Lakes area economy and housing market.
Location in a community - Being close to schools, work 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 regions consistently appreciate much more reliably than areas lacking key features.
Recent sales - Your agent should provide you with figures on the recent real estate sales in the districts that you're interested 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 believed to be?
Economic factors - Have businesses moved into or away from an area? Are local businesses hiring? Is there a fair mixture of business in an area, or does it count on just one industry?
All these play a role.