Fluctuating home prices in Denver, Colorado: What causes this?
Real estate prices are continually changing.
Over a long enough period of time, home values , by and large, appreciate.
But, of course, there are no guarantees in real estate.
When your house appreciates you have more equity to borrow against, and you'll realize a greater profit when you sell.
There are numerous reasons why property values in Denver waver. So, how can you be sure what you're purchasing now will appreciate over time?
Choosing a real estate agent in Denver who understands the factors that drive local prices is the most important aspect to consider.
The economy is believed to be the most critical factor affecting real estate appreciation.
mortgage rates, unemployment, business growth, government programs and numerous other national determinants have a definite influence on your property's worth.
But the most significant issues that figure your house's value are specific to the local Denver economy and residential market.
Location in a community - Proximity to jobs and schools also have a huge influence on almost all home buyers' decisions.
So these communities typically appreciate, or retain their value, best.
Recent sales - Your REALTOR® should provide you with information on the recent real estate sales in the areas that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have house prices increased or decreased over the past 5 to 10 years? Is the neighborhood thought to be desirable because of its location or affordability?
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 upon just one industry? Is the blend of commercial and residential development changing?
Each of these things plays a part.
It's important to understand the factors that influence your home's value.
Visit this link
for an assessment of your home's value.
Have any questions? Please feel free to call me at 303.399.2154 or e-mail me