Understanding Property Appreciation in Austin
Unlike other parts of the country where there have been dramatic spikes in appreciation of home values leading to "bubbles," Austin's real estate appreciation has been gradual and steady. Real estate is many people's largest single investment and it makes up a large part of our net worth. When your home appreciates you have more equity to borrow against and you make a bigger profit when you sell. But how do you know that what you are investing in now will appreciate over time? This is why it is important to pick an Austin realtor that knows the factors that drive local prices.
The U.S. economy is believed to be very important in your home's appreciation. Obviously, mortgage rates, unemployment, job growth, government programs and a handful of other national factors have a measurable impact on your home's worth. However, your home's value and the factors that play the biggest role in its appreciation are specific to the local Austin economy and housing market.
Location in a community - Some parts of town appreciate faster than others. It could be the desirability of schools, the overall beauty or quaintness of an area, their proximity to shopping, restaurants, popular employment hubs etc. Also, every city is evolving. Some areas currently lag behind but are on the cusp of exploding in popularity. A knowledgeable realtor should be an expert on these trends and be able to identify these areas for you.
Trends in Home Sales and Appreciation History - How fast are homes selling in each area? How long has this been going on? What are the variations in sales-to-list-price ratios area to area? Some information can often be obtained from public records, but a good realtor with access to MLS data should be able to drill down much deeper and provide you with richer trend data.
Local Economic Factors - Have companies moved into or away from an area? Are major corporate relocations anticipated in some areas? What local business sectors are hiring? Is overall business growth good or is the bulk of growth limited to several business sectors in certain parts of town?
I KNOW Austin. I can help answer these questions and look forward to helping you navigate your way to the wisest real estate investment(s) in our town.
It's wise to understand the factors that impact your property's worth. Get an assessment of your home's value here
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