Over time, the worth of a home will go up and down.
Normally, house values appreciate in the long term.
But, in real estate there are no "sure things".
When your home appreciates you have more resources to borrow against, and you'll create a greater profit when you sell.
There are many different reasons why property values in Austin go up and down. So, how can you be sure what you're investing in right now will appreciate over time?
It's important that you choose a REALTOR® in Austin who understands the factors that affect local prices.
A lot of people assume that the economy is the top factor affecting real estate appreciation.
mortgage rates, employment, business growth, government programs and many other national determinants have a definite effect on your house's worth.
But the most important issues that determine your house's value are specific to the local Austin economy and residential market.
Location in a community - Convenient access to schools, work and amenities like shopping, restaurants and entertainment is a priority to many buyers and will greatly influence home values.
So when it comes to keeping their value, these regions usually appreciate the best.
Recent sales - Your agent should provide you with stats 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 5-10 years, have house prices increased or decreased? Does location or affordability affect how desirable the area is thought of as?
Economic factors - Have businesses moved into or away from an area? Are local businesses hiring? Is there a fair mix of job types in an area, or does it count on just one industry?
Each of these items plays a role.