Fluctuating home prices in Needham, Massachusetts: What causes this?
Property prices are forever in flux. Almost always, home values appreciate in the long term. But, in real estate there are no "sure things".
When your house appreciates you have a greater asset to borrow against, and you'll make a higher profit when you sell. Property values in Needham move up and down for different reasons, so how will you know what you're purchasing presently won't depreciate the day after you close? Choosing a REALTOR® in Needham who knows the factors that influence local prices is the most important thing.
What is the most influential factor impacting real estate appreciation? Many guess that it's the economy. Naturally, there are some factors on a national level that affect your house's value: unemployment, interest rates, business growth, and more. But the most influential things that determine your home's value are particular to the local Needham economy and housing market.
Access to services - Most people want homes in the regions with the most useful amenities, like our work and schools. So those areas typically appreciate, or hold their value consistently, year to year.
Recent home sales - How long do homes typically stay up for sale before closing? Are sellers needing 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 often be able to provide a more complete picture.
History of appreciation - In the last 5 to 10 years, have home prices risen or declined? Does location or affordability affect how desirable the area is considered?
Local economy - Is there a nice mixture of work in an area, or does it rely on just one industry? Have companies moved into or away from an area? Are local companies hiring? These items play a part.