Real estate prices are continually changing.
Over a long enough period of time, house values usually appreciate.
But, of course, in real estate there are no guarantees.
When your house appreciates you have a more valuable asset to borrow against, and you make a higher profit when you sell.
There are different reasons why property values in Austin rise and fall. So, how do you know what you're buying now will appreciate over time?
The most important element to consider is that you choose a real estate agent in Austin who is familiar with the factors that drive local prices.
A lot of people assume that the economy is the most critical factor affecting real estate appreciation.
It goes without saying that
there are a handful of issues on a national level that change your house's value: unemployment, mortgage rates, the stock market, and more.
However, your property's value and the components that play the most significant role in its appreciation are specific to the local Austin economy and housing market.
Location in a community - Proximity to jobs and schools also have a major impact on almost all home buyers' choices.
So when it comes to retaining their value, these regions generally appreciate the best.
Recent sales - Your agent should give you information on the recent real estate sales in the regions that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have home prices increased or decreased over the past 5-10 years? Is the neighborhood considered desirable because of its location or affordability?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a nice mix of work in an area, or does it depend on just one industry? Is the blend of commercial and residential zoning changing?
All these play a part.