What drives property values to move up and down?

Over time, the worth of a property will fluctuate up and down. Over a long enough period of time, home values almost always appreciate. But, of course, there is always a certain amount of risk in real estate.

When your home appreciates you have more resources to borrow against, and you'll produce a larger profit when you sell. But how will you know what you're purchasing presently will appreciate over time? Property values go up and down for different reasons. The most important factor is that you pick an agent who understands the factors that drive local prices.

The economy is thought to be the biggest factor impacting real estate appreciation. It goes without saying that mortgage rates, employment, business growth, government programs and a handful of other national factors have a definite effect on your home's worth. But the most significant factors that determine your house's value are particular to the local economy and residential market.

Let CSR Real Estate Services help you with your first home purchase in San Jose Location in a community - Many of us decide to live in regions with the most helpful characteristics for households to grow, such as a close proximity to schools, jobs, and work. So these regions typically appreciate, or keep their value consistently, year to year.

Real estate sales trends - Are homes on the market 30, 60, or 90 days or even longer? What was the final sales amount compared to the asking price? A lot of data can be obtained from public records, but a good agent with a login to the local MLS will often be able to provide a more complete picture.

The appreciation history - Is the area believed to be desirable because of its location or affordability? Have property prices increased or decreased over the past 5 to 10 years?

The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a fair blend of work in an area, or does it depend on just one industry? Is the mix of commercial and residential zoning changing? All these play a role.

Knowing the factors that impact your house's financial worth is important. Click here to get an estimation of your house's value. Have any questions? Please feel free to call me at (408)558-5000 ex. 7219 or e-mail me.

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