Over time, the worth of a house will fluctuate up and down.
Property values appreciate in the long term for the most part.
But there are no "sure things" in real estate, of course.
When your home appreciates you have more equity to borrow against, and you'll produce a larger profit when you sell.
But how will you know what you're investing in presently will appreciate over time? Property values in Annapolis rise and fall for various reasons.
The most important thing is that you pick a real estate agent in Annapolis who can identify the factors that influence local prices.
Many are convinced that the economy is the most influential factor impacting real estate appreciation.
After all,
there are many factors on a national level that adjust your property's value: unemployment, interest rates, inflation, and more.
However, your house's value and the things that play the biggest role in its appreciation are specific to the local Annapolis economy and housing market.
Location in a community - Convenient access to schools, work and amenities like shopping, restaurants and entertainment is important to many buyers and will greatly influence home values.
So these communities consistently appreciate, or carry their value, best.
Recent home sales - What's the time on market? Are sellers having to discount much? A lot of data can be obtained from public records, but a good agent with access to the local MLS will usually be able to provide a more complete picture.
History of appreciation - In the past 5-10 years, have house prices gone up or down? Does location or affordability affect how desirable the neighborhood is believed to be?
Local economy - Is there a fair blend of job types in an area, or does it count on just one industry? Have businesses moved into or away from an area? Are local businesses hiring?
These items play a role.