Property prices are constantly moving up and down.
Over a long enough period of time, home values , in most cases, go up.
But, in real estate there are no "sure things".
When your property appreciates you have a bigger asset to borrow against, and you'll generate a better profit when you sell.
There are numerous reasons why property values in Austin move up and down. So, how can you be sure what you're buying presently will appreciate over time?
The most important factor is that you select a REALTOR® in Austin who is familiar with the factors that influence local prices.
A lot of people are convinced that the economy is the most important factor impacting real estate appreciation.
Clearly,
mortgage rates, employment, job growth, government programs and a lot of other national factors have a definite influence on your home's value.
But the most significant things that determine your house's value are specific to the local Austin economy and housing market.
Location in a community - Many home buyers prefer to live in districts with the most conducive traits for homes to do well, such as a close proximity to schools, jobs, and work.
So when it comes to keeping their value, these communities usually appreciate the best.
Recent sales - Your REALTOR® should give you information on the recent real estate sales in the neighborhoods that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
The appreciation history - Is the neighborhood thought to be desirable because of its location or affordability? Have property prices gone up or down over the past 5 to 10 years?
Local economy - Is there a nice mix of jobs in an area, or does it count on just one industry? Have businesses moved into or away from an area? Are local companies hiring?
These items play a part.