Fluctuating home prices in Salisbury, North Carolina: What causes this?
Home values are continually changing. Normally, property values appreciate in the long term. But, of course, in real estate there is always a certain amount of risk.
When your home appreciates you have a more valuable asset to borrow against, and you get a larger profit when you sell. Property values in Salisbury shift for different reasons, so how will you be sure what you're buying today won't depreciate the day after you close? It's critical that you go with a real estate agent in Salisbury who can identify the factors that drive local prices.
A lot of people think that the economy is the most influential factor impacting real estate appreciation. Clearly, interest rates, employment, business growth, government programs and quite a few other national determinants have a definite impact on your property's worth. But the most important things that figure your house's value depend on the local Salisbury economy and residential market.
Access to services - Proximity to schools and work also have a great effect on most home buyers' choices. So when it comes to retaining their value, these regions usually appreciate better than others.
Recent sales - Your agent should provide you with reports on the recent real estate sales in the neighborhoods that you're asking about. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have house prices increased or decreased over the past 5-10 years? Is the area believed to be desirable because of its location or affordability?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a good blend of business in an area, or does it rely on just one industry? Each of these pieces plays a role.