Over time, the worth of a home will fluctuate up and down.
House values appreciate in the long term generally.
But, in real estate there are no guarantees.
When your house appreciates you have a larger asset to borrow against, and you'll generate a higher profit when you sell.
There is a variety of reasons why property values in Lexington shift. So, how do you know what you're purchasing right now will appreciate over time?
The most important element is that you choose a real estate agent in Lexington who can identify the factors that affect local prices.
A lot of people guess that the economy is the major factor impacting real estate appreciation.
mortgage rates, employment, job growth, government programs and many other national factors have a noticeable effect on your house's worth.
But the most significant factors that determine your house's value are particular to the local Lexington economy and residential market.
Access to services - Most people want homes in the areas with the most useful places we go often or everyday, such as our jobs and schools.
So these areas generally appreciate, or carry their value consistently, year to year.
Recent sales - Your REALTOR® should provide you with stats on the recent real estate sales in the areas that you're asking about. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have house prices increased or decreased over the past 5 to 10 years? Is the community thought of as desirable because of its location or affordability?
Local economy - Is there a good combination of work in an area, or does it depend on just one industry? Have companies moved into or away from an area? Are local businesses hiring?
All these play a part.