Tampa home prices: Need some help understanding why they appreciate?
Over time, the value of a property will go up and down. Home values appreciate in the long term for the most part. But, in real estate there are no guarantees.
When your home appreciates you have a greater asset to borrow against, and you'll create a better profit when you sell. But how will you be sure what you're buying today will appreciate over time? Property values in Tampa vary for many different reasons. Choosing a real estate agent in Tampa who can identify the factors that affect local prices is the most important thing.
The economy is believed to be the greatest factor affecting real estate appreciation. Clearly, mortgage rates, employment, job growth, government programs and a handful of other national determinants have a noticeable effect on your home's value. However, your property's value and the components that play the most significant role in its appreciation depend on the local Tampa economy and housing market.
Location in a community - Proximity to work and schools also have a significant impact on many home buyers' choices. So those areas typically appreciate, or retain their value, best.
Recent sales - Your real estate agent should give you reports on the recent home sales in the areas that you're asking about. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the past 5-10 years, have property prices increased or decreased? Does location or affordability affect how desirable the area is considered?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a good mixture of business in an area, or does it rely on just one industry? Is the mix of commercial and residential zoning changing? All these play a role.