Property prices are constantly moving up and down.
Over a long enough period of time, home values usually appreciate.
But there are no "sure things" in real estate.
When your property appreciates you have a bigger asset to borrow against, and you'll create a greater profit when you sell.
But how can you be sure what you're buying presently will appreciate over time? Property values in Lexington rise and fall for various reasons.
Choosing an agent in Lexington who knows the factors that drive local prices is the most important element to consider.
Many assume that the economy is the greatest factor affecting real estate appreciation.
mortgage rates, unemployment, business growth, government programs and a handful of other national determinants have a measurable impact on your home's worth.
However, your home's value and the features that play the biggest role in its appreciation are specific to the local Lexington economy and housing market.
Location in a community - Being close to schools, jobs and amenities like shopping, restaurants and entertainment is a priority to many buyers and will greatly influence home values.
So these communities often appreciate, or hold their value consistently, year to year.
Recent home sales - You should receive data on the recent real estate sales in the neighborhoods that you're interested in from your REALTOR®. You'll want to learn data like time on market and seller discounts.
Appreciation history - Have property prices increased or decreased over the last 5-10 years? Is the area considered desirable because of its location or affordability?
Local economy - Is there a nice blend of jobs in an area, or does it rely on just one industry? Have companies moved into or away from an area? Are local businesses hiring?
All these play a role.