Tampa home prices: Need some help understanding why they appreciate?
Over time, the worth of a piece of real estate will go up and down. Over a long enough period of time, property values usually go up. But, in real estate there is always a certain amount of risk.
When your property appreciates you have more equity to borrow against, and you get a higher profit when you sell. Property values in Tampa waver for a variety of reasons, so how can you be sure what you're investing in today won't depreciate the day after you close? Choosing an agent in Tampa who can identify the factors that drive local prices is the most important element.
A lot of people believe that the economy is the most critical factor affecting real estate appreciation. It goes without saying that mortgage rates, unemployment, job growth, government programs and many other national factors have a definite influence on your house's worth. However, your home's value and the elements that play the most significant role in its appreciation depend on the local Tampa economy and housing market.
Access to services - Proximity to jobs and schools also have a huge influence on all home buyers' choices. So these areas generally appreciate, or retain their value consistently, year to year.
Recent sales - Your REALTOR® should give you facts and figures on the recent real estate 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 area considered desirable because of its location or affordability? Have home prices risen or declined over the past 5 to 10 years?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a good blend of jobs in an area, or does it rely on just one industry? All these play a role.