Property values are constantly moving up and down.
Over a long enough period of time, home values almost always go up.
But, of course, there is always a certain amount of risk in real estate.
When your home appreciates you have a more valuable asset to borrow against, and you'll produce a higher profit when you sell.
There are many different reasons why property values in Naples fluctuate. So, how do you know what you're purchasing this year will appreciate over time?
It's critical that you choose an agent in Naples who knows the factors that affect local prices.
What is the number one factor affecting real estate appreciation? Many are convinced that it's the economy.
Clearly,
interest rates, unemployment, job growth, government programs and a handful of other national factors have a noticeable impact on your property's value.
But the most influential issues that decide your property's value depend on the local Naples economy and housing market.
Access to services - Convenient access to schools, work and amenities like shopping, restaurants and entertainment is a big deal to a lot of us and will greatly influence home values.
So these areas often appreciate, or keep their value, best.
Recent home sales - You should receive reports on the recent real estate sales in the districts that you're interested in from your real estate agent. You'll need to know figures like time on market and listing price versus selling price.
History of appreciation - In the last 5 to 10 years, have house prices risen or declined? Does location or affordability affect how desirable the community is thought to be?
The local economy - Are local businesses hiring? Have businesses moved into or away from an area? Is there a fair combination of job types in an area, or does it rely upon just one industry? Is the mix of commercial and residential zoning changing?
These items play a part.