Home prices are forever in flux.
Home values appreciate in the long term by and large.
But, in real estate there is always a certain amount of risk.
When your property appreciates you have a larger asset to borrow against, and you'll see a larger profit when you sell.
There are different reasons why property values in Clearwater go up and down. So, how can you be sure what you're purchasing today will appreciate over time?
The most important element is that you choose a real estate agent in Clearwater who knows the factors that influence local prices.
The economy is believed to be the number one factor impacting real estate appreciation.
interest rates, employment, job growth, government programs and a handful of other national factors have a noticeable influence on your house's value.
But the most influential things that figure your house's value are specific to the local Clearwater economy and residential market.
Access to services - People typically want homes in the areas with the most accommodating places we go often or everyday, like our jobs and schools.
So these areas consistently appreciate, or keep their value consistently, year to year.
Recent home sales - What's the time on market? What was the selling price versus the asking price? Some information can 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.
The appreciation history - Is the neighborhood thought of as desirable because of its location or affordability? Have home prices increased or decreased over the last 5 to 10 years?
Local economy - Is there a fair mix of work in an area, or does it count on just one industry? Have businesses moved into or away from an area? Are local companies hiring?
These items play a part.