Fluctuating home prices in Annapolis, Maryland: What causes this?
Over time, the worth of a piece of real estate will go up and down.
For the most part, property values appreciate in the long term.
But, of course, in real estate there is always a certain amount of risk.
When your house appreciates you have more resources to borrow against, and you'll generate a larger profit when you sell.
There are many different reasons why property values in Annapolis fluctuate. So, how can you be sure what you're investing in right now will appreciate over time?
It's imperative that you pick a REALTOR® in Annapolis who recognizes the factors that influence local prices.
What is the major factor impacting real estate appreciation? Many are convinced that it's the economy.
Naturally,
interest rates, unemployment, job growth, government programs and a handful of other national determinants have a noticeable effect on your house's value.
However, your home's value and the factors that play the most significant role in its appreciation depend on the local Annapolis economy and housing market.
Access to services - Proximity to schools and jobs also have a huge impact on all home buyers' choices.
So when it comes to keeping their value, these regions usually appreciate the best.
Recent sales - Your REALTOR® should give you stats on the recent real estate sales in the neighborhoods that you're asking about. You'll want to know average time on market, selling versus listing price and more.
The appreciation history - Is the community believed to be desirable because of its location or affordability? Have house prices increased or decreased over the past 5-10 years?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a nice combination of business in an area, or does it rely upon just one industry? Is the blend of commercial and residential zoning changing?
Each of these pieces plays a role.
Learning the factors that affect your house's financial worth is important.
Get an evaluation of your home's value
here.
Please call me at 410-647-8000 ext. 817 or
e-mail me with any questions.