Over time, the worth of a piece of real estate will fluctuate up and down. Usually, house values appreciate in the long term. But, of course, there are no guarantees in real estate.
When your property appreciates you have a larger asset to borrow against, and you’ll create a better profit when you sell. Property values in Durham vary for many different reasons, so how do you know what you’re investing in today won’t depreciate the day after you close? The most important thing is that you choose an agent in Durham who can identify the factors that influence local prices.
A lot of people think that the economy is the biggest factor impacting real estate appreciation. After all, there are several factors on a national level that impact your house’s value: unemployment, mortgage rates, quarterly earnings reports, and more. But the most influential issues that determine your home’s value are particular to the local Durham economy and residential market.
Location in a community – Convenient access to schools, work, and amenities like shopping, restaurants, and entertainment is a big deal to a lot of families and will greatly influence home values. So these areas typically appreciate or keep their value, best.
Real estate sales trends – How fast are homes selling? Are sellers needing to discount much? Some information can be obtained from public records, but a good agent with a login to the local MLS will usually provide a more complete picture.
History of appreciation – In the past 5-10 years, have home prices gone up or down? Does location or affordability affect how desirable the area is considered?
Local economy – Is there a nice mix of job types in an area, or does it rely on just one industry? Have companies moved into or away from an area? Are local businesses hiring? All these play a role.