Property prices are continually changing.
Over a long enough period of time, property values typically go up.
But, in real estate there are no "sure things".
When your property appreciates you have more equity to borrow against, and you'll see a greater profit when you sell.
There is a variety of reasons why property values in Lexington go up and down. So, how can you be sure what you're buying right now will appreciate over time?
It's imperative that you select a REALTOR® in Lexington who is familiar with the factors that affect local prices.
A lot of people think that the economy is the most important factor affecting real estate appreciation.
interest rates, employment, job growth, government programs and some other national factors have a noticeable influence on your home's worth.
But the most important things that determine your property's value depend on the local Lexington economy and residential market.
Access to services - Proximity to work and schools also have a significant influence on most home buyers' decisions.
So those regions consistently appreciate, or carry their value consistently, year to year.
Recent sales - Your agent should provide you with data on the recent real estate sales in the neighborhoods 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 5-10 years, have property prices gone up or down? Does location or affordability affect how desirable the area is thought to be?
Local economy - Is there a good combination of business in an area, or does it count on just one industry? Have companies moved into or away from an area? Are local businesses hiring?
All these play a role.