Saint Louis home prices: Need some help understanding why they appreciate?
Home values are continually changing. Generally, home values appreciate in the long term. But, of course, in real estate there are no “sure things”.
When your home appreciates you have a bigger asset to borrow against, and you make a bigger profit when you sell. But how can you be sure what you’re buying today will appreciate over time? Property values in Saint Louis go up and down for different reasons. The most important thing to consider is that you go with an agent in Saint Louis who can identify the factors that drive local prices.
What is the most crucial factor impacting real estate appreciation? Many are convinced that it’s the economy. After all, interest rates, unemployment, business growth, government programs and several other national factors have a definite effect on your home’s value. However, your house’s value and the factors that play the biggest role in its appreciation are particular to the local Saint Louis economy and housing market.
Location in a community – Many of us decide to live in regions with the most useful components for households to do well, like a close proximity to jobs and schools. So those areas consistently appreciate, or hold their value consistently, year to year.
The latest home sales – You should receive stats on the recent real estate sales in the areas that you’re interested in from your agent. You’ll want to learn figures like time on market and listing price versus selling price.
History of appreciation – In the last 5 to 10 years, have property prices increased or decreased? Does location or affordability affect how desirable the neighborhood is considered?
The local economy – Are local businesses hiring? Have businesses moved into or away from an area? Is there a nice blend of business in an area, or does it rely on just one industry? Is the blend of commercial and residential development changing? Each of these factors plays a role.