Fluctuating home prices: What causes this?

Home prices are forever in flux. Typically, house values appreciate in the long term. But, in real estate there is always a certain amount of risk.

When your property appreciates you have more equity to borrow against, and you'll see a better profit when you sell. But how do you know what you're buying this year will appreciate over time? Property values can move up and down for various reasons. It's critical that you go with a real estate agent who can identify the factors that drive local prices.

Free Home Valuation

What is the greatest factor affecting real estate appreciation? Many think that it's the economy. After all, there are many factors on a national level that adjust your house's value: unemployment, interest rates, business growth, and more. But the most important things that decide your property's value are specific to the local economy and housing market.

Let ReDefined Real Estate help you with your first home purchase in Arnold

Let ReDefined Real Estate help you with your first home purchase in Arnold

Location in a community - Many of us prefer to live in areas with the best and most convenient characteristics for homes to shine, like a close proximity to schools and work. So when it comes to retaining their value, these regions typically appreciate better than others.

Recent sales - Your agent should provide you with reports on the recent home sales in the districts that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.

Appreciation history - Have house prices increased or decreased over the last 5-10 years? Is the community considered desirable because of its location or affordability?

The local economy - Are local companies hiring? Have businesses moved into or away from an area? Is there a nice mix of business in an area, or does it rely on just one industry? Is the blend of commercial and residential development changing? Each of these items plays a role.


	Recognizing the factors that affect your house's financial worth is important. Get an evaluation of your home's value here. Please call us at 636-296-0037 or e-mail us with any questions.