Over time, the value of a property will go up and down.
House values appreciate in the long term by and large.
But there are no guarantees in real estate.
When your home appreciates you have a greater asset to borrow against, and you'll produce a greater profit when you sell.
But how do you know what you're buying now will appreciate over time? Property values in Lexington move up and down for various reasons.
The most important aspect is that you go with a real estate agent in Lexington who recognizes the factors that drive local prices.
A lot of people think that the economy is the number one factor impacting real estate appreciation.
there are a lot of issues on a national level that adjust your home's value: unemployment, interest rates, inflation, and more.
However, your home's value and the components that play the biggest role in its appreciation depend on the local Lexington economy and housing market.
Location in a community - Many consumers choose to live in districts with the best and most convenient components for families to succeed, such as a close proximity to schools, jobs, and work.
So when it comes to retaining their value, these communities usually appreciate better than others.
Trends in home sales - How quickly are homes selling? What was the final sales amount versus the listing price? Some information can often be obtained from public records, but a good agent with access to the local MLS will often be able to provide a more complete picture.
Appreciation history - Have property prices increased or decreased over the past 5-10 years? Is the neighborhood thought to be desirable because of its location or affordability?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a nice mix of business in an area, or does it rely on just one industry? Is the mix of commercial and residential development changing?
All these play a part.