Property values are constantly moving up and down.
Home values appreciate in the long term generally.
But, in real estate there are no guarantees.
When your property appreciates you have a greater asset to borrow against, and you'll generate a greater profit when you sell.
There are different reasons why property values in Annapolis move up and down. So, how will you be sure what you're investing in today will appreciate over time?
It's important that you pick an agent in Annapolis who recognizes the factors that affect local prices.
A lot of people guess that the economy is the most critical factor affecting real estate appreciation.
there are many issues on a national level that affect your home's value: unemployment, mortgage rates, quarterly earnings reports, and more.
But the most important issues that determine your home's value are particular to the local Annapolis economy and housing market.
Access to services - People typically want homes in the areas with the most accommodating places we go often or everyday, such as our work and schools.
So these regions often appreciate, or hold their value, best.
Recent sales - Your real estate agent should provide you with data on the recent real estate sales in the areas that you're interested in. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the past 5-10 years, have property prices increased or decreased? Does location or affordability affect how desirable the community is believed to be?
Local economy - Is there a fair blend of jobs in an area, or does it count on just one industry? Have companies moved into or away from an area? Are local companies hiring?
Each of these things plays a role.