Austin home prices: Need some help understanding why they appreciate?
Over time, the value of a home will fluctuate up and down.
Over a long enough period of time, house values generally go up.
But, in real estate there is always a certain amount of risk.
When your house appreciates you have a larger asset to borrow against, and you get a better profit when you sell.
There is a variety of reasons why property values in Austin waver. So, how will you know what you're purchasing presently will appreciate over time?
The most important part is that you choose a REALTOR® in Austin who knows the factors that affect local prices.
The economy is assumed to be the most influential factor impacting real estate appreciation.
there are some factors on a national level that impact your property's value: unemployment, interest rates, consumer confidence, and more.
But the most important factors that determine your property's value are particular to the local Austin economy and housing market.
Location in a community - Many consumers want to live in regions with the most conducive amenities for families to grow, such as a close proximity to schools, jobs, and work.
So those regions consistently appreciate, or hold their value, best.
Real estate sales trends - Are homes on the market 30, 60, or 90 days or even longer? Are sellers needing to discount much? Some information can often be retrieved from public records, but a good agent with access to the local MLS will usually provide a more complete picture.
Appreciation history - Have property prices increased or decreased over the past 5 to 10 years? Is the community thought of as desirable because of its location or affordability?
Economic factors - Have businesses moved into or away from an area? Are local companies hiring? Is there a nice mix of business in an area, or does it count on just one industry?
Each of these items plays a part.
Learning the factors that impact your home's price is important.
Click here to receive an evaluation of your property's value.
Call me at 512-699-6262 or e-mail me if you have any questions at all. I'd love to hear from you.