Over time, the worth of a home will go up and down.
For the most part, property values appreciate in the long term.
But there is always a certain amount of risk in real estate, of course.
When your property appreciates you have a greater asset to borrow against, and you get a bigger profit when you sell.
There are many different reasons why property values in Durham change. So, how will you know what you're purchasing this year will appreciate over time?
Choosing a REALTOR® in Durham who can identify the factors that affect local prices is the most important element.
What is the greatest factor affecting real estate appreciation? Many assume that it's the economy.
It goes without saying that
mortgage rates, unemployment, business growth, government programs and a lot of other national determinants have a measurable influence on your property's value.
But the most significant things that decide your property's value are specific to the local Durham economy and housing market.
Access to services - Being close to schools, work and amenities like shopping, restaurants and entertainment is important to many families and will greatly influence home values.
So those areas consistently appreciate, or keep their value consistently, year to year.
The latest home sales - You should receive facts and figures on the recent real estate sales in the areas that you're interested in from your real estate agent. You'll need to learn figures like how long a house stays on the market and listing price versus selling price.
History of appreciation - In the last 5-10 years, have home prices increased or decreased? Does location or affordability affect how desirable the area is thought of as?
Local economy - Is there a nice mixture of business in an area, or does it rely on just one industry? Have companies moved into or away from an area? Are local companies hiring?
All these play a part.