Over time, the value of a piece of real estate will go up and down.
Over a long enough period of time, house values almost always go up.
But, of course, there is always a certain amount of risk in real estate.
When your house appreciates you have a more valuable asset to borrow against, and you'll produce a greater profit when you sell.
Property values in Lexington waver for many different reasons, so how will you be sure what you're investing in now won't depreciate the day after you close?
It's imperative that you pick an agent in Lexington who recognizes the factors that drive local prices.
A lot of people assume that the economy is the most critical factor impacting real estate appreciation.
Obviously,
interest rates, employment, job growth, government programs and some other national determinants have a noticeable influence on your home's worth.
However, your property's value and the elements that play the biggest role in its appreciation are specific to the local Lexington economy and housing market.
Access to services - Many of us choose to live in districts with the most useful traits for homes to grow, such as a close proximity to schools, jobs, and work.
So these regions consistently appreciate, or retain their value, best.
Recent home sales - How long are homes up for sale before closing? Are sellers needing to discount much? A lot of data can often be retrieved from public records, but a good agent with a login to the local MLS will usually provide a more complete picture.
The appreciation history - Is the area thought of as desirable because of its location or affordability? Have property prices gone up or down over the past 5 to 10 years?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a nice combination of jobs in an area, or does it depend on just one industry?
These items play a part.