Real estate values are forever in flux.
Over a long enough period of time, house values generally appreciate.
But, of course, there is always a certain amount of risk in real estate.
When your house appreciates you have a more valuable asset to borrow against, and you'll create a better profit when you sell.
But how will you know what you're purchasing presently will appreciate over time? Property values in Southwest Florida fluctuate for a variety of reasons.
It's important that you pick an agent in Southwest Florida who understands the factors that affect local prices.
Many think that the economy is the most influential factor impacting real estate appreciation.
mortgage rates, employment, business growth, government programs and a lot of other national determinants have a definite effect on your house's value.
But the most influential factors that determine your house's value are particular to the local Southwest Florida economy and residential market.
Access to services - People typically want homes in the regions with the best and most convenient places we go often or everyday, like our work and schools.
So when it comes to retaining their value, these areas consistently appreciate better than others.
Trends in home sales - Are homes on the market 30, 60, or 90 days or even longer? What was the selling price compared to the listing price? A lot of data can be obtained from public records, but a good agent with a login to the local MLS will usually provide a more complete picture.
Appreciation history - Have house prices risen or declined over the past 5 to 10 years? Is the neighborhood considered 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 nice blend of business in an area, or does it rely upon just one industry? Is the blend of commercial and residential zoning changing?
These items play a role.