Fluctuating home prices in Delray Beach, Florida: What causes this?
Property values are continually changing. Usually, property values appreciate in the long term. But, of course, in real estate there are no "sure things".
When your house appreciates you have a more valuable asset to borrow against, and you'll see a higher profit when you sell. But how will you be sure what you're buying this year will appreciate over time? Property values in Delray Beach rise and fall for a variety of reasons. It's imperative that you go with a REALTOR® in Delray Beach who knows the factors that affect local prices.
A lot of people think that the economy is the biggest factor affecting real estate appreciation. Naturally, interest rates, employment, business growth, government programs and a lot of other national factors have a definite influence on your home's value. However, your property's value and the elements that play the most significant role in its appreciation depend on the local Delray Beach economy and housing market.
Location in a community - Many consumers want to live in regions with the most accommodating factors for homes to grow, like a close proximity to schools and work. So these communities typically appreciate, or carry their value, best.
Real estate sales trends - How long are homes up for sale before closing? Are sellers needing to discount much or offer concessions A lot of data can often be retrieved from public records, but a good agent with a login to the local MLS will usually be able to provide a more complete picture.
Appreciation history - Have house prices risen or declined over the past 5-10 years? Is the community thought of as desirable because of its location or affordability?
Economic factors - Have businesses moved into or away from an area? Are local companies hiring? Is there a good combination of business in an area, or does it depend on just one industry? All these play a role.