What drives property values in Austin to move up and down?
Over time, the value of a house will go up and down. Property values appreciate in the long term almost always. But there is always a certain amount of risk in real estate, of course.
When your home appreciates you have more resources to borrow against, and you get a better profit when you sell. There are numerous reasons why property values in Austin fluctuate. So, how will you be sure what you're buying right now will appreciate over time? It's imperative that you choose an agent in Austin who recognizes the factors that affect local prices.
Many assume that the economy is the most important factor affecting real estate appreciation. After all, there are quite a few issues on a national level that impact your home's value: unemployment, interest rates, the stock market, and more. But the most influential factors that determine your property's value depend on the local Austin economy and housing market.
Location in a community - Convenient access to schools, jobs and amenities like shopping, restaurants and entertainment is a priority to a lot of us and will greatly influence home values. So when it comes to retaining their value, these areas typically appreciate the best.
Recent sales - Your REALTOR® should provide you with facts and figures on the recent real estate sales in the areas 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 past 5 to 10 years? Is the community thought of as desirable because of its location or affordability?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a good mix of work in an area, or does it rely upon just one industry? Is the blend of commercial and residential development changing? Each of these pieces plays a part.