Home prices: Need some help understanding why they appreciate?
Property values are continually changing. Property values appreciate in the long term almost always. But, in real estate there is always a certain amount of risk.
When your home appreciates you have a more valuable asset to borrow against, and you'll make a higher profit when you sell. But how do you know what you're investing in right now will appreciate over time? Property value shift for different reasons. The most important thing to consider is that you go with an agent who is familiar with the factors that drive local prices.
What is the most critical factor affecting real estate appreciation? Many believe that it's the economy. It goes without saying that mortgage rates, employment, job growth, government programs and quite a few other national determinants have a definite affect your property's value. But the most important factors that determine your property's value are particular to the local economy and residential market.
Location in a community - Proximity to schools and work also have a great affect on most home buyers' choices. So these communities often appreciate, or carry their value consistently, year to year.
The latest home sales - How long are homes up for sale before closing? What was the final sales amount compared to the asking price? A lot of data can be retrieved from public records, but a good agent with access to the local MLS will often be able to provide a more complete picture.
History of appreciation - In the last 5-10 years, have house prices risen or declined? Does location or affordability affect how desirable the neighborhood is thought to be?
Economic factors - Have businesses moved into or away from an area? Are local companies hiring? Is there a fair blend of job types in an area, or does it rely on just one industry? All these play a part.
Identifying the factors that impact your home's worth is important. Click here to get an estimation of your home's value. Call me Merrill Spicer at (267)973-0681 or email me at MerrillSpicer@comcast.net if you have any questions at all. I'd love to hear from you.
101 Greenwood Avenue Suite LC60 Jenkintown, PA 19046 Cell: Fax:
Location in a community - Proximity to schools and work also have a great affect on most home buyers' choices. So these communities often appreciate, or carry their value consistently, year to year. 
