Over time, the value of a house will fluctuate up and down.
House values appreciate in the long term typically.
But, of course, there is always a certain amount of risk in real estate.
When your house appreciates you have a greater asset to borrow against, and you'll generate a higher profit when you sell.
But how will you know what you're investing in presently will appreciate over time? Property values in Lexington go up and down for many different reasons.
Choosing an agent in Lexington who understands the factors that drive local prices is the most important part.
A lot of people believe that the economy is the major factor impacting real estate appreciation.
interest rates, employment, job growth, government programs and a handful of other national determinants have a definite effect on your property's worth.
However, your house's value and the components that play the most significant role in its appreciation depend on the local Lexington economy and housing market.
Location in a community - Being close to schools, work and amenities like shopping, restaurants and entertainment is important to a lot of buyers and will greatly influence home values.
So those areas consistently appreciate, or retain their value consistently, year to year.
Recent home sales - You should receive figures on the recent real estate sales in the districts that you'd like to live in from your agent. You'll need to learn figures like how long a house stays on the market and listing price as opposed to selling price.
The appreciation history - Is the area thought of as desirable because of its location or affordability? Have property prices increased or decreased over the last 5-10 years?
Economic factors - Have businesses moved into or away from an area? Are local companies hiring? Is there a nice combination of job types in an area, or does it depend on just one industry?
These items play a role.