Property prices are forever in flux.
Almost always, home values appreciate in the long term.
But there is always a certain amount of risk in real estate.
When your home appreciates you have a more valuable asset to borrow against, and you'll make a larger profit when you sell.
There is a variety of reasons why property values in Lexington vary. So, how do you know what you're buying today will appreciate over time?
Choosing a REALTOR® in Lexington who can identify the factors that influence local prices is the most important element.
What is the biggest factor affecting real estate appreciation? Many assume that it's the economy.
there are numerous factors on a national level that impact your home's value: unemployment, mortgage rates, the stock market, and more.
However, your house's value and the components that play the most significant role in its appreciation are specific to the local Lexington economy and housing market.
Access to services - Many of us wish to live in regions with the most conducive factors for families to succeed, such as a close proximity to schools, jobs, and work.
So these communities typically appreciate, or keep their value, best.
Real estate sales trends - How fast are homes selling? What was the selling price versus the asking price? Some information can be retrieved from public records, but a good agent with a login to the local MLS will often be able to provide a more complete picture.
History of appreciation - In the past 5-10 years, have home prices increased or decreased? Does location or affordability affect how desirable the neighborhood is believed to be?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a fair mixture of jobs in an area, or does it rely on just one industry? Is the mix of commercial and residential development changing?
Each of these things plays a part.