What causes Central Florida home prices to fluctuate?
Over time, the worth of a piece of real estate will fluctuate up and down. Over a long enough period of time, house values normally appreciate. But, of course, there is always a certain amount of risk in real estate.
When your home appreciates you have more resources to borrow against, and you'll generate a higher profit when you sell. There are many different reasons why property values in Central Florida fluctuate. So, how will you know what you're buying today will appreciate over time? It's imperative that you select a real estate agent in Central Florida who recognizes the factors that influence local prices.
What is the number one factor affecting real estate appreciation? Many guess that it's the economy. Obviously, mortgage rates, unemployment, job growth, government programs and many other national determinants have a measurable effect on your home's worth. However, your property's value and the components that play the biggest role in its appreciation are particular to the local Central Florida economy and housing market.
Location in a community - Many of us prefer to live in districts with the most conducive elements for homes to do well, like a close proximity to schools and work. So when it comes to keeping their value, these communities usually appreciate much more reliably than areas lacking key features.
Real estate sales trends - What's the time on market? Are sellers having to discount much? Some information can often be obtained from public records, but a good agent with access to the local MLS will usually be able to provide a more complete picture.
The appreciation history - Is the area considered desirable because of its location or affordability? Have home prices increased or decreased over the last 5-10 years?
Local economy - Is there a fair mix of business in an area, or does it depend on just one industry? Have companies moved into or away from an area? Are local businesses hiring? Each of these items plays a part.
Learning the factors that play into your house's price is important. Visit this link
for an estimation of your house's value. Please call us at (407)366-1333 or e-mail us
with any questions.