Over time, the value of a house will fluctuate up and down.
House values appreciate in the long term in most cases.
But, in real estate there is always a certain amount of risk.
When your home appreciates you have more resources to borrow against, and you make a better profit when you sell.
Property values in Austin move up and down for numerous reasons, so how can you be sure what you're buying today won't depreciate the day after you close?
The most important part is that you choose a REALTOR® in Austin who knows the factors that drive local prices.
Many are convinced that the economy is the most crucial factor affecting real estate appreciation.
Obviously,
there are several factors on a national level that alter your property's value: unemployment, interest rates, quarterly earnings reports, and more.
However, your house's value and the components that play the biggest role in its appreciation depend on the local Austin economy and housing market.
Access to services - Proximity to schools and work also have a major effect on many home buyers' decisions.
So when it comes to holding their value, these regions often appreciate much more reliably than areas lacking key features.
Trends in home sales - How long do homes typically stay up for sale before closing? Are sellers needing to discount much? A lot of data can be retrieved 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 neighborhood thought of as desirable because of its location or affordability? Have property prices risen or declined over the last 5-10 years?
Local economy - Is there a good mixture of job types in an area, or does it depend on just one industry? Have companies moved into or away from an area? Are local companies hiring?
These items play a part.