Over time, the value of a house will go up and down.
Over a long enough period of time, house values typically appreciate.
But, of course, there are no guarantees in real estate.
When your property appreciates you have a larger asset to borrow against, and you'll generate a greater profit when you sell.
There are many different reasons why property values in Lexington go up and down. So, how will you be sure what you're purchasing today will appreciate over time?
It's critical that you choose an agent in Lexington who is familiar with the factors that drive local prices.
Many guess that the economy is the major factor impacting real estate appreciation.
It goes without saying that
there are numerous factors on a national level that change your property's value: unemployment, interest rates, business growth, and more.
However, your house's value and the things that play the biggest role in its appreciation depend on the local Lexington economy and housing market.
Location in a community - Many consumers decide to live in districts with the most accommodating traits for homes to thrive, like a close proximity to schools, jobs, and work.
So when it comes to keeping their value, these communities usually appreciate much more reliably than areas lacking key features.
Recent sales - Your agent should give you information on the recent real estate sales in the districts that you're asking about. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have property prices risen or declined over the last 5 to 10 years? Is the area thought of as desirable because of its location or affordability?
The local economy - Are local companies hiring? Have businesses moved into or away from an area? Is there a fair blend of business in an area, or does it rely on just one industry? Is the blend of commercial and residential zoning changing?
All these play a role.