Understanding property appreciation in South Central Minnesota
Home values are constantly moving up and down.
Over a long enough period of time, house values , in most cases, go up.
But, of course, in real estate there are no guarantees.
When your property appreciates you have a more valuable asset to borrow against, and you'll generate a higher profit when you sell.
There are many different reasons why property values in South Central Minnesota move up and down. So, how do you know what you're buying this year will appreciate over time?
Choosing a REALTOR® in South Central Minnesota who knows the factors that affect local prices is the most important aspect to consider.
The economy is assumed to be the most critical factor affecting real estate appreciation.
It goes without saying that
interest rates, employment, business growth, government programs and quite a few other national determinants have a measurable impact on your house's value.
However, your property's value and the components that play the biggest role in its appreciation depend on the local South Central Minnesota economy and housing market.
Location in a community - Convenient access to schools, employment and amenities like shopping, restaurants and entertainment is a priority to many families and will greatly influence home values.
So these areas consistently appreciate, or keep their value consistently, year to year.
The latest home sales - You should receive reports on the recent real estate sales in the areas that you're interested in from your real estate agent. You'll want to know data like how long a house stays on the market and seller discounts.
The appreciation history - Is the community considered desirable because of its location or affordability? Have home prices gone up or down over the past 5 to 10 years?
The local economy - Are local businesses hiring? Have businesses moved into or away from an area? Is there a fair blend of work in an area, or does it count on just one industry? Is the blend of commercial and residential development changing?
Each of these pieces plays a role.
It's wise to know the factors that play into your house's worth.
to receive an evaluation of your property's value.
And if you have any questions, call me at (507)330-2164 or e-mail me