Property values are forever in flux.
Normally, home values appreciate in the long term.
But there are no "sure things" in real estate.
When your house appreciates you have a greater asset to borrow against, and you make a higher profit when you sell.
Property values in Austin change for various reasons, so how do you know what you're purchasing this year won't depreciate the day after you close?
The most important thing to consider is that you pick a real estate agent in Austin who understands the factors that affect local prices.
What is the most influential factor affecting real estate appreciation? Many are convinced that it's the economy.
interest rates, unemployment, business growth, government programs and numerous other national determinants have a measurable effect on your property's value.
However, your property's value and the aspects that play the biggest role in its appreciation are specific to the local Austin economy and housing market.
Location in a community - Many of us prefer to live in districts with the most accommodating characteristics for families to do well, such as a close proximity to jobs and schools.
So these regions often appreciate, or keep their value, best.
Recent sales - Your agent should give you facts and figures on the recent home sales in the districts that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have house prices increased or decreased over the last 5-10 years? Is the neighborhood believed to be desirable because of its location or affordability?
Local economy - Is there a nice mix of jobs in an area, or does it depend on just one industry? Have companies moved into or away from an area? Are local businesses hiring?
All these play a role.