Over time, the value of a piece of real estate will fluctuate up and down.
Generally, house 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 a greater asset to borrow against, and you'll generate a greater profit when you sell.
There are many different reasons why property values in Austin move up and down. So, how will you know what you're purchasing right now will appreciate over time?
It's important that you go with a real estate agent in Austin who recognizes the factors that drive local prices.
A lot of people guess that the economy is the most influential factor affecting real estate appreciation.
there are a lot of factors on a national level that alter your home's value: unemployment, interest rates, business growth, and more.
But the most influential things that determine your home's value are particular to the local Austin economy and residential market.
Access to services - Many consumers wish to live in areas with the most convenient amenities for homes to thrive, like a close proximity to jobs and schools.
So when it comes to retaining their value, these communities typically appreciate much more reliably than areas lacking key features.
Recent sales - Your agent should give you figures on the recent real estate sales in the districts that you're asking about. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the last 5 to 10 years, have house prices risen or declined? Does location or affordability affect how desirable the area is believed to be?
Local economy - Is there a nice combination of business in an area, or does it count on just one industry? Have businesses moved into or away from an area? Are local companies hiring?
Each of these elements plays a part.