Over time, the value of a home will fluctuate up and down.
Normally, home values appreciate in the long term.
But, of course, there is always a certain amount of risk in real estate.
When your property appreciates you have more resources to borrow against, and you'll generate a higher profit when you sell.
But how do you know what you're purchasing right now will appreciate over time? Property values in Lexington rise and fall for different reasons.
Choosing an agent in Lexington who can identify the factors that drive local prices is the most important element to consider.
A lot of people believe that the economy is the most influential factor impacting real estate appreciation.
Naturally,
mortgage rates, unemployment, job growth, government programs and several other national factors have a measurable effect on your property's worth.
However, your property's value and the features that play the biggest role in its appreciation depend on the local Lexington economy and housing market.
Access to services - Most people want homes in the areas with the most accommodating features, like our jobs and schools.
So those regions usually appreciate, or carry their value consistently, year to year.
Recent home sales - You should receive figures on the recent real estate sales in the areas that you're asking about from your real estate agent. You'll want to know data like time on market and seller discounts.
Appreciation history - Have house prices risen or declined over the past 5 to 10 years? Is the area thought of as desirable because of its location or affordability?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a nice combination of work in an area, or does it rely on just one industry? Is the blend of commercial and residential development changing?
All these play a part.