Austin home prices: Need some help understanding why they appreciate?

Over time, the value of a house will fluctuate up and down. In most cases, house values appreciate in the long term. But, in real estate there is always a certain amount of risk.

When your house appreciates you have a greater asset to borrow against, and you'll create a better profit when you sell. Property values in Austin move up and down for many different reasons, so how will you be sure what you're investing in presently won't depreciate the day after you close? Choosing an agent in Austin who can identify the factors that affect local prices is the most important aspect to consider.

The economy is assumed to be the most crucial factor affecting real estate appreciation. It goes without saying that interest rates, unemployment, business growth, government programs and quite a few other national factors have a definite effect on your home's value. But the most significant factors that decide your home's value depend on the local Austin economy and housing market.

Let IREAF, LLC help you with your first home purchase in Austin Location in a community - Convenient access to schools, employment and amenities like shopping, restaurants and entertainment is a priority to a lot of families and will greatly influence home values. So when it comes to retaining their value, these communities usually appreciate better than others.

Recent home sales - You should receive reports on the recent real estate sales in the areas that you're interested in from your real estate agent. You'll want to analyze figures like time on market and listing price as opposed to selling price.

History of appreciation - In the last 5-10 years, have property prices risen or declined? Does location or affordability affect how desirable the community is considered?

Local economy - Is there a nice mix of work in an area, or does it depend on just one industry? Have businesses moved into or away from an area? Are local businesses hiring? Each of these items plays a part.

Knowing the factors that impact your house's worth is important. Visit this link for an evaluation of your home's value. Call me at 512-241-1707 or e-mail me if you have any questions at all. I'd love to hear from you.

IREAF, LLC

P.O. Box 143683
Austin, TX 78714-3683