What You Should Know About Property Appreciation
Property appreciation refers to the increase in market value of a property over a period of time. Appreciation is directly related to current market factors and can fluctuate with market conditions. Factors at the national level include:
- Current mortgage rates
- Business growth
- Government programs
- Strength of the economy
- The number of homes available on the market
Factors at the local level include:
- Local housing market – Is there a demand for houses in your area?
- Location in a community – Proximity to schools and work have a significant influence on almost all home buyers’ decisions. These areas usually appreciate better than others.
- Latest home sales – What is the average time on market, asking price and selling price in your area? Your agent will present you with reports showing comparable recent sales in your area.
- History of appreciation – In the past 5 to 10 years, have house prices gone up or down? Does location or affordability affect the desirability of the community?
- Local economy – Is there a good combination of industries? Have businesses moved into or away from an area? Are local businesses hiring?
In a real estate market where there is a limited number of homes for sale and a large number of buyers in the marketplace, homes tend to appreciate in value. Other factors that tend to increase appreciation are location and condition of the home and attractive financing. Property improvements such as additional bedrooms, bathrooms and kitchen improvements can add to the value of your home.
Complete the Home Valuation request to find out what your property value. If you have questions, please contact me via email or at (910) 261-3575 at your convenience. Some interesting and informative articles about property appreciation are Top 4 Things That Determine A Home’s Value and Important Factors which Influence Property Appreciation.