Over time, the worth of a piece of real estate will fluctuate up and down.
Over a long enough period of time, property values almost always appreciate.
But there is always a certain amount of risk in real estate, of course.
When your home appreciates you have a greater asset to borrow against, and you'll produce a better profit when you sell.
There are many different reasons why property values in Anchorage waver. So, how can you be sure what you're buying today will appreciate over time?
It's imperative that you pick a REALTOR® in Anchorage who can identify the factors that affect local prices.
The economy is thought to be the biggest factor impacting real estate appreciation.
It goes without saying that
interest rates, employment, job growth, government programs and quite a few other national factors have a definite effect on your property's worth.
However, your house's value and the things that play the biggest role in its appreciation are particular to the local Anchorage economy and housing market.
Location in a community - Many consumers choose to live in areas with the most convenient amenities for families to thrive, like a close proximity to schools and work.
So these communities usually appreciate, or hold their value consistently, year to year.
Recent sales - Your real estate agent should give you information on the recent home sales in the regions that you're interested in. You'll want to know average time on market, selling versus listing price and more.
The appreciation history - Is the neighborhood believed to be desirable because of its location or affordability? Have house prices gone up or down over the last 5 to 10 years?
Economic factors - Have businesses moved into or away from an area? Are local businesses hiring? Is there a fair mixture of job types in an area, or does it rely upon just one industry?
These items play a part.