Home prices are continually changing.
Over a long enough period of time, house values , in most cases, appreciate.
But there is always a certain amount of risk in real estate.
When your home appreciates you have more equity to borrow against, and you'll create a larger profit when you sell.
But how do you know what you're purchasing now will appreciate over time? Property values in Austin rise and fall for a variety of reasons.
The most important thing to consider is that you choose a real estate agent in Austin who can identify the factors that affect local prices.
A lot of people assume that the economy is the most critical factor affecting real estate appreciation.
Obviously,
interest rates, unemployment, job growth, government programs and numerous other national factors have a measurable impact on your property's value.
However, your home's value and the features that play the biggest role in its appreciation are particular to the local Austin economy and housing market.
Access to services - Proximity to schools, jobs, and amenities also have a major impact on all home buyers' decisions.
So these areas consistently appreciate, or retain their value consistently, year to year.
Prior home sales - How quickly are homes selling? Are sellers having to discount much or offer concessions 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.
History of appreciation - In the last 5-10 years, have property prices gone up or down? Does location or affordability affect how desirable the area is thought to be?
Local economy - Is there a good combination of work in an area, or does it rely on just one industry? Have businesses moved into or away from an area? Are local companies hiring?
Each of these factors plays a part.