Property values are constantly moving up and down.
Home values appreciate in the long term typically.
But, of course, there is always a certain amount of risk in real estate.
When your property appreciates you have more resources to borrow against, and you'll make a larger profit when you sell.
But how will you be sure what you're investing in this year will appreciate over time? Property values in Lexington go up and down for different reasons.
Choosing an agent in Lexington who can identify the factors that influence local prices is the most important part.
What is the most important factor affecting real estate appreciation? Many think that it's the economy.
interest rates, unemployment, business growth, government programs and several other national determinants have a definite impact on your home's worth.
However, your house's value and the aspects that play the most significant role in its appreciation are specific to the local Lexington economy and housing market.
Access to services - Proximity to schools and jobs also have a major influence on most home buyers' decisions.
So when it comes to holding their value, these regions usually appreciate better than others.
Real estate sales trends - What's the time on market? What was the selling price compared to the listing price? Some information can be retrieved from public records, but a good agent with access to the local MLS will usually be able to provide a more complete picture.
History of appreciation - In the last 5 to 10 years, have home prices gone up or down? Does location or affordability affect how desirable the neighborhood is believed to be?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a good mix of work in an area, or does it rely on just one industry? Is the mix of commercial and residential zoning changing?
These items play a role.