Over time, the value of a house will go up and down.
Over a long enough period of time, property values almost always go up.
But, in real estate there are no guarantees.
When your home appreciates you have a bigger asset to borrow against, and you'll realize a better profit when you sell.
There are various reasons why property values in Austin move up and down. So, how can you be sure what you're purchasing today will appreciate over time?
It's critical that you choose a REALTOR® in Austin who can identify the factors that influence local prices.
The economy is thought to be the most crucial factor impacting real estate appreciation.
mortgage rates, employment, job growth, government programs and numerous other national determinants have a measurable influence on your home's value.
But the most significant issues that figure your house's value are specific to the local Austin economy and residential market.
Location in a community - Convenient access to schools, work and amenities like shopping, restaurants and entertainment is a big deal to a lot of families and will greatly influence home values.
So when it comes to keeping their value, these areas generally appreciate better than others.
Prior home sales - How long are homes on the market? Are sellers having 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 often be able to provide a more complete picture.
History of appreciation - In the last 5-10 years, have property prices risen or declined? Does location or affordability affect how desirable the neighborhood is thought of as?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a nice mixture of work in an area, or does it depend on just one industry? Is the mix of commercial and residential zoning changing?
Each of these factors plays a role.