Over time, the worth of a property will go up and down. Over a long enough period of time, home values , in most cases, go up. But, of course, in real estate there is always a certain amount of risk.
When your home appreciates you have a larger asset to borrow against, and you’ll generate a larger profit when you sell. Property values in Long Island rise and fall for many different reasons, so how do you know what you’re purchasing today won’t depreciate the day after you close? Choosing a REALTOR® in Long Island who knows the factors that drive local prices is the most important element.
The economy is believed to be the most critical factor affecting real estate appreciation. Clearly, there are a handful of factors on a national level that affect your house’s value: unemployment, interest rates, business growth, and more. But the most significant things that decide your house’s value are specific to the local Long Island economy and housing market.
Access to services – Proximity to schools, jobs, and amenities also have a major impact on many home buyers’ choices. So those regions generally appreciate, or keep their value consistently, year to year.
Recent home sales – You should receive statistics on the recent real estate sales in the neighborhoods that you’re asking about from your real estate agent. You’ll want to analyze data like how long a house stays on the market and seller discounts.
Appreciation history – Have house prices increased or decreased over the past 5-10 years? Is the neighborhood considered 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 job types in an area, or does it depend on just one industry? Is the blend of commercial and residential zoning changing? These items play a part.