What causes Needham home prices to fluctuate?
Over time, the value of a piece of real estate will fluctuate up and down. Over a long enough period of time, home values , by and large, appreciate. But, of course, there are no "sure things" in real estate.
When your house appreciates you have a bigger asset to borrow against, and you make a higher profit when you sell. But how can you be sure what you're purchasing now will appreciate over time? Property values in Needham rise and fall for numerous reasons. It's important that you pick a real estate agent in Needham who is familiar with the factors that drive local prices.
What is the greatest factor impacting real estate appreciation? Many think that it's the economy. Obviously, there are many factors on a national level that alter your house's value: unemployment, interest rates, consumer confidence, and more. But the most significant issues that figure your house's value are particular to the local Needham economy and residential market.
Location in a community - Most people want homes in the areas with the most convenient amenities, like our work and schools. So those communities generally appreciate, or carry their value, best.
Trends in home sales - What's the time on market? Are sellers having to discount much? A lot of data can often be obtained 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 area thought to be desirable because of its location or affordability? Have property prices increased or decreased over the past 5 to 10 years?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a fair blend of business in an area, or does it rely on just one industry? Is the blend of commercial and residential development changing? These items play a role.