Fluctuating home prices in Needham, Massachusetts: What causes this?
Over time, the worth of a piece of real estate will go up and down. Over a long enough period of time, house values usually go up. But, of course, in real estate there are no "sure things".
When your property appreciates you have a greater asset to borrow against, and you'll realize a larger profit when you sell. But how do you know what you're investing in presently will appreciate over time? Property values in Needham rise and fall for various reasons. The most important factor to consider is that you pick a REALTOR® in Needham who recognizes the factors that influence local prices.
A lot of people guess that the economy is the top factor affecting real estate appreciation. Clearly, there are quite a few factors on a national level that impact your house's value: unemployment, interest rates, the stock market, and more. However, your property's value and the things that play the biggest role in its appreciation are particular to the local Needham economy and housing market.
Location in a community - Many home buyers want to live in regions with the most helpful traits for families to do well, like a close proximity to jobs and schools. So those communities consistently appreciate, or hold their value, best.
Real estate sales trends - How fast are houses selling? What was the final sales amount compared to the listing price? A lot of data can often be retrieved from public records, but a good agent with access to the local MLS will usually provide a more complete picture.
The appreciation history - Is the community thought of as desirable because of its location or affordability? Have property prices risen or declined over the past 5-10 years?
Economic factors - Have businesses moved into or away from an area? Are local companies hiring? Is there a fair combination of jobs in an area, or does it rely upon just one industry? These items play a role.