Real estate prices are continually changing. House values appreciate in the long term typically. But, in real estate there are no guarantees.
When your property appreciates you have a bigger asset to borrow against, and you make a higher profit when you sell. There are many different reasons why property values in Lexington move up and down. So, how will you be sure what you're purchasing today will appreciate over time? It's critical that you select a REALTOR® in Lexington who is familiar with the factors that influence local prices.
The economy is believed to be the top factor affecting real estate appreciation. After all, mortgage rates, unemployment, job growth, government programs and some other national factors have a measurable impact on your property's worth. But the most important factors that decide your property's value are specific to the local Lexington economy and housing market.
Access to services - Proximity to jobs and schools also have a major effect on almost all home buyers' choices. So those regions often appreciate, or retain their value, best.
Prior home sales - How long do homes typically stay up for sale before closing? Are sellers having to discount much or offer concessions Some information can be retrieved from public records, but a good agent with a login to the local MLS will usually be able to provide a more complete picture.
Appreciation history - Have house prices risen or declined over the last 5-10 years? Is the area thought to be desirable because of its location or affordability?
Local economy - Is there a nice mixture of work in an area, or does it rely on just one industry? Have companies moved into or away from an area? Are local businesses hiring? Each of these factors plays a role.
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