Real estate values are forever in flux.
Over a long enough period of time, home values generally appreciate.
But, in real estate there is always a certain amount of risk.
When your property appreciates you have more equity to borrow against, and you'll generate a higher profit when you sell.
There are numerous reasons why property values in Lexington go up and down. So, how can you be sure what you're investing in this year will appreciate over time?
The most important element is that you choose a REALTOR® in Lexington who understands the factors that affect local prices.
What is the most important factor affecting real estate appreciation? Many believe that it's the economy.
there are a handful of issues on a national level that influence your property's value: unemployment, interest rates, business growth, and more.
However, your home's value and the aspects that play the most significant role in its appreciation are specific to the local Lexington economy and housing market.
Location in a community - Many of us wish to live in areas with the most convenient amenities for households to develop, such as a close proximity to schools and work.
So when it comes to holding their value, these communities typically appreciate much more reliably than areas lacking key features.
Recent home sales - You should receive data on the recent real estate sales in the regions that you're interested in from your agent. You'll want to know figures like time on market and seller discounts.
Appreciation history - Have home prices risen or declined over the last 5 to 10 years? Is the community thought to be 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 good mixture of jobs in an area, or does it depend on just one industry? Is the blend of commercial and residential zoning changing?
Each of these factors plays a role.