Over time, the worth of a piece of real estate will fluctuate up and down.
Over a long enough period of time, home values , in most cases, go up.
But there are no guarantees in real estate.
When your property appreciates you have more equity to borrow against, and you'll make a larger profit when you sell.
There are numerous reasons why property values in Phoenix change. So, how can you be sure what you're purchasing presently will appreciate over time?
Choosing a real estate agent in Phoenix who is familiar with the factors that drive local prices is the most important element.
A lot of people assume that the economy is the greatest factor affecting real estate appreciation.
mortgage rates, unemployment, job growth, government programs and a handful of other national factors have a measurable influence on your house's value.
But the most influential factors that figure your property's value are specific to the local Phoenix economy and housing market.
Location in a community - Being close to schools, employment and amenities like shopping, restaurants and entertainment is important to many us and will greatly influence home values.
So these communities often appreciate, or hold their value, best.
Recent sales - Your REALTOR® should give you reports on the recent home sales in the neighborhoods that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the past 5-10 years, have house prices risen or declined? Does location or affordability affect how desirable the neighborhood is thought of as?
Local economy - Is there a fair mix of jobs in an area, or does it rely on just one industry? Have businesses moved into or away from an area? Are local businesses hiring?
These items play a role.