Real estate values are constantly moving up and down.
Over a long enough period of time, house values , in most cases, appreciate.
But, of course, there are no "sure things" in real estate.
When your home appreciates you have more equity to borrow against, and you'll make a bigger profit when you sell.
There are different reasons why property values in Lexington fluctuate. So, how will you be sure what you're purchasing now will appreciate over time?
It's critical that you go with an agent in Lexington who understands the factors that influence local prices.
A lot of people assume that the economy is the most influential factor impacting real estate appreciation.
mortgage rates, unemployment, job growth, government programs and several other national factors have a definite influence on your home's value.
However, your property's value and the components that play the most significant role in its appreciation are particular to the local Lexington economy and housing market.
Access to services - Proximity to schools, jobs, and amenities also have a major effect on many home buyers' decisions.
So those communities typically appreciate, or keep their value, best.
Recent sales - Your real estate agent should give you stats on the recent home sales in the areas that you're interested in. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have home prices increased or decreased over the last 5-10 years? Is the community considered desirable because of its location or affordability?
Economic factors - Have companies moved into or away from an area? Are local companies hiring? Is there a nice combination of jobs in an area, or does it rely upon just one industry?
Each of these items plays a role.