What causes Phoenix home prices to fluctuate?
Home prices are constantly moving up and down. Over a long enough period of time, home values , by and large, go up. But, in real estate there is always a certain amount of risk.
When your property appreciates you have a more valuable asset to borrow against, and you make a better profit when you sell. But how will you know what you’re purchasing today will appreciate over time? Property values in Phoenix go up and down for a variety of reasons. It’s imperative that you go with a real estate agent in Phoenix who understands the factors that affect local prices.
The economy is thought to be the most influential factor impacting real estate appreciation. Obviously, mortgage rates, employment, job growth, government programs and some other national factors have a noticeable influence on your home’s worth. But the most influential factors that figure your house’s value are particular to the local Phoenix economy and residential market.
Access to services – Many of us prefer to live in districts with the most conducive factors for homes to succeed, like a close proximity to jobs and schools. So those regions usually appreciate, or carry their value, best.
The latest home sales – You should receive statistics on the recent real estate sales in the regions that you’re interested in from your REALTOR®. You’ll want to analyze data like how long a house stays on the market and asking price as opposed to selling price.
Appreciation history – Have house prices gone up or down over the last 5-10 years? Is the neighborhood 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 blend of job types in an area, or does it rely upon just one industry? Each of these elements plays a part.