Home values are forever in flux.
House values appreciate in the long term typically.
But there is always a certain amount of risk in real estate.
When your property appreciates you have a larger asset to borrow against, and you'll generate a bigger profit when you sell.
There are various reasons why property values in Annapolis move up and down. So, how can you be sure what you're investing in now will appreciate over time?
It's imperative that you choose an agent in Annapolis who is familiar with the factors that influence local prices.
The economy is assumed to be the most important factor impacting real estate appreciation.
It goes without saying that
there are some issues on a national level that impact your house's value: unemployment, mortgage rates, consumer confidence, and more.
However, your home's value and the elements that play the biggest role in its appreciation depend on the local Annapolis economy and housing market.
Location in a community - Many of us decide to live in districts with the best and most convenient amenities for households to succeed, like a close proximity to schools and work.
So when it comes to retaining their value, these regions often appreciate much more reliably than areas lacking key features.
Recent sales - Your agent should provide you with facts and figures on the recent home sales in the neighborhoods 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 last 5 to 10 years, have house prices gone up or down? Does location or affordability affect how desirable the neighborhood is thought to be?
Economic factors - Have companies moved into or away from an area? Are local companies hiring? Is there a nice mixture of job types in an area, or does it rely upon just one industry?
These items play a part.