Real estate prices are forever in flux.
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 home appreciates you have a bigger asset to borrow against, and you'll create a higher profit when you sell.
Property values in Lexington shift for various reasons, so how will you be sure what you're purchasing right now won't depreciate the day after you close?
Choosing a REALTOR® in Lexington who can identify the factors that influence local prices is the most important element.
The economy is thought to be the most critical factor impacting real estate appreciation.
interest rates, employment, business growth, government programs and numerous other national determinants have a measurable influence on your property's worth.
But the most influential things that determine your property's value are particular to the local Lexington economy and housing market.
Access to services - Many consumers want to live in areas with the most accommodating characteristics for families to do well, such as a close proximity to jobs and schools.
So when it comes to holding their value, these communities often appreciate the best.
Recent sales - Your agent should give you facts and figures on the recent real estate sales in the neighborhoods that you're interested in. 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 past 5-10 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 fair combination of jobs in an area, or does it count on just one industry?
Each of these pieces plays a role.