Over time, the value of a house will fluctuate up and down.
Home values appreciate in the long term normally.
But, of course, in real estate there is always a certain amount of risk.
When your home appreciates you have a greater asset to borrow against, and you get a larger profit when you sell.
But how will you know what you're purchasing today will appreciate over time? Property values in Annapolis rise and fall for numerous reasons.
The most important element is that you go with an agent in Annapolis who recognizes the factors that influence local prices.
Many assume that the economy is the most critical factor impacting real estate appreciation.
Clearly,
there are many issues on a national level that adjust your house's value: unemployment, interest rates, quarterly earnings reports, and more.
But the most significant things that decide your house's value are particular to the local Annapolis economy and housing market.
Access to services - Most people want homes in the areas with the most convenient places we go often or everyday, such as our schools, jobs, and shopping.
So when it comes to keeping their value, these communities consistently appreciate better than others.
Recent sales - Your agent should provide you with statistics 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 gone up or down over the last 5 to 10 years? Is the area believed to be desirable because of its location or affordability?
Local economy - Is there a nice mix of business in an area, or does it depend on just one industry? Have companies moved into or away from an area? Are local companies hiring?
These items play a role.