Newburgh home prices: Need some help understanding why they appreciate?
Over time, the value of a piece of real estate will fluctuate up and down. Over a long enough period of time, house values generally appreciate. But there is always a certain amount of risk in real estate, of course.
When your house appreciates you have a more valuable asset to borrow against, and you'll make a bigger profit when you sell. But how can you be sure what you're investing in now will appreciate over time? Property values in Newburgh move up and down for different reasons. It's important that you pick a REALTOR® in Newburgh who knows the factors that influence local prices.
Many are convinced that the economy is the greatest factor affecting real estate appreciation. It goes without saying that interest rates, employment, business growth, government programs and a lot of other national determinants have a noticeable impact on your home's value. However, your property's value and the things that play the biggest role in its appreciation are specific to the local Newburgh economy and housing market.
Location in a community - Most people want homes in the regions with the easiest access to amenities, like our work and schools. So these areas generally appreciate, or retain their value consistently, year to year.
Recent sales - Your REALTOR® should provide you with data on the recent real estate sales in the regions that you're interested in. 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 home prices gone up or down? Does location or affordability affect how desirable the community is thought of as?
The local economy - Are local companies hiring? Have businesses moved into or away from an area? Is there a good mix of work in an area, or does it count on just one industry? Is the blend of commercial and residential zoning changing? These items play a role.