Over time, the value of a home will go up and down.
Over a long enough period of time, home values typically go up.
But, of course, there is always a certain amount of risk in real estate.
When your property appreciates you have more equity to borrow against, and you'll produce a better profit when you sell.
There is a variety of reasons why property values in Lexington vary. So, how can you be sure what you're buying this year will appreciate over time?
Choosing an agent in Lexington who recognizes the factors that affect local prices is the most important element.
What is the top factor impacting real estate appreciation? Many guess that it's the economy.
there are several issues on a national level that change your house's value: unemployment, mortgage rates, inflation, and more.
But the most significant things that determine your property's value are particular to the local Lexington economy and housing market.
Location in a community - Convenient access to schools, employment and amenities like shopping, restaurants and entertainment is a priority to many us and will greatly influence home values.
So these areas generally appreciate, or retain their value, best.
Recent sales - Your REALTOR® should provide you with reports on the recent real estate sales in the areas that you're interested in. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have house prices increased or decreased over the past 5-10 years? Is the community considered 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 nice blend of work in an area, or does it rely upon just one industry? Is the blend of commercial and residential zoning changing?
All these play a part.