Real estate values are constantly moving up and down. Over a long enough period of time, house values , by and large, appreciate. But, of course, in real estate there is always a certain amount of risk.
When your property appreciates you have a more valuable asset to borrow against, and you’ll make a greater profit when you sell. But how do you know what you’re buying presently will appreciate over time? Property values in Lihue fluctuate for different reasons. The most important part is that you choose a real estate agent in Lihue who understands the factors that drive local prices.
What is the top factor impacting real estate appreciation? Many assume that it’s the economy. Obviously, interest rates, employment, job growth, government programs and a lot of other national determinants can always adjust your house’s value. However, your house’s value and the features that play the most significant role in its appreciation are particular to the local Lihue economy and housing market.
Location in a community – People typically want homes in the districts with the most convenient features, like our schools and work. So these regions typically appreciate, or keep their value consistently, year to year.
Real estate sales trends – Are homes on the market 30, 60, or 90 days or even longer? What was the selling price compared to the asking 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.
Appreciation history – Have home prices increased or decreased over the last 5 to 10 years? Is the neighborhood thought of as desirable because of its location or affordability?
The local economy – Are local companies hiring? Have businesses moved into or away from an area? Is there a good blend of job types in an area, or does it depend on just one industry? Is the blend of commercial and residential zoning changing? These items play a part.
It’s important to understand the factors that play into your property’s market price. Get an assessment of your house’s value here. Please call me at 8082454049 or e-mail me with any questions.