Over time, the worth of a property will fluctuate up and down. Generally, 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’ll produce a better profit when you sell. But how can you be sure what you’re buying today will appreciate over time? Property values in Minneapolis change for many different reasons. It’s imperative that you choose a REALTOR® in Minneapolis who understands the factors that drive local prices.
What is the biggest factor impacting real estate appreciation? Many assume that it’s the economy. Clearly, there are many issues on a national level that affect your property’s value: unemployment, mortgage rates, inflation, and more. However, your home’s value and the features that play the biggest role in its appreciation are specific to the local Minneapolis economy and housing market.
Location in a community – Proximity to schools, jobs, and amenities also have a great effect on most home buyers’ choices. So these areas generally appreciate, or carry their value, best.
Real estate sales trends – What’s the time on market? What was the final sales amount compared to the listing price? Some information can often be obtained from public records, but a good agent with a login to the local MLS will often provide a more complete picture.
The appreciation history – Is the community thought of as desirable because of its location or affordability? Have property prices risen or declined over the last 5-10 years?.
Local economy – Is there a good combination of work in an area, or does it rely on just one industry? Have businesses moved into or away from an area? Are local businesses hiring? All these play a role.
Knowing the factors that play into your property’s market price is important. Click here to get an assessment of your property’s value. Call me at 612-226-9603 or e-mail me if you have any questions at all. I’d love to hear from you.
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