Over time, the value of a property will go up and down.
Almost always, house values appreciate in the long term.
But, of course, 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'll generate a higher profit when you sell.
Property values in Lexington fluctuate for numerous reasons, so how will you know what you're buying now won't depreciate the day after you close?
Choosing a REALTOR® in Lexington who knows the factors that affect local prices is the most important factor to consider.
What is the most important factor impacting real estate appreciation? Many assume that it's the economy.
It goes without saying that
mortgage rates, employment, job growth, government programs and many other national factors have a measurable influence on your property's value.
However, your house's value and the features that play the biggest role in its appreciation are specific to the local Lexington economy and housing market.
Location in a community - Proximity to work and schools also have a huge influence on most home buyers' choices.
So these regions typically appreciate, or keep their value consistently, year to year.
Recent sales - Your real estate agent should provide you with data on the recent home sales in the regions that you're asking about. 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 gone up or down? Does location or affordability affect how desirable the area is believed to be?
Economic factors - Have companies moved into or away from an area? Are local companies hiring? Is there a nice mixture of business in an area, or does it count on just one industry?
These items play a part.