Property values are constantly moving up and down.
Home values appreciate in the long term in most cases.
But, 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 get a larger profit when you sell.
But how do you know what you're buying right now will appreciate over time? Property values in Lexington move up and down for numerous reasons.
The most important thing to consider is that you choose an agent in Lexington who understands the factors that influence local prices.
Many guess that the economy is the number one factor impacting real estate appreciation.
mortgage rates, unemployment, job growth, government programs and a lot of other national determinants have a noticeable influence on your house's value.
But the most significant things that decide your house's value are specific to the local Lexington economy and housing market.
Access to services - Proximity to schools and jobs also have a significant impact on almost all home buyers' decisions.
So these regions usually appreciate, or retain their value, best.
Recent sales - Your agent should provide you with reports on the recent home sales in the regions that you're interested in. You'll want to know average time on market, selling versus listing price and more.
The appreciation history - Is the community believed to be desirable because of its location or affordability? Have house prices risen or declined over the last 5-10 years?
Local economy - Is there a nice mix of job types in an area, or does it rely upon just one industry? Have businesses moved into or away from an area? Are local businesses hiring?
These items play a part.
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