What causes home prices to fluctuate?

 

Logo of the National Association of Realtors.

Logo of the National Association of Realtors. (Photo credit: Wikipedia)

 

What causes home prices to fluctuate?

 

Over time, the worth of a house will go up and down. Over a long enough period of time, house values normally appreciate. But, in real estate there is always a certain amount of risk.

 

When your home appreciates you have a larger asset to borrow against, and you get a larger profit when you sell. There are various reasons why property values in Longmont change. So, how will you be sure what you’re investing in this year will appreciate over time? The most important part is that you pick a real estate agent in Longmont who can identify the factors that drive local prices.

 

A lot of people think that the economy is the top factor affecting real estate appreciation. Naturally, mortgage rates, employment, job growth, government programs and numerous other national factors have a noticeable effect on your home’s worth. But the most significant issues that determine your home’s value depend on the local Longmont economy and residential market.

 

Access to services – Being close to schools, employment and amenities like shopping, restaurants and entertainment is a big deal to many buyers and will greatly influence home values. So when it comes to keeping their value, these regions generally appreciate the best.

 

Recent home sales – You should receive facts and figures on the recent real estate sales in the neighborhoods that you’d like to live in from your REALTOR®. You’ll want to know figures like how long a house stays on the market and seller discounts.

 

History of appreciation – In the past 5-10 years, have house prices gone up or down? 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 businesses hiring? Is there a nice combination of job types in an area, or does it rely on just one industry? All these play a part.

 

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About Garry Callis - Legacy Real Estate Group - Colorado

Awesome Colorado Realtor! Check me out at www.legacyrealtor.net

Posted on August 9, 2012, in Market Conditions and tagged , , , , , , . Bookmark the permalink. Leave a comment.

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