Over time, the worth of a piece of real estate will go up and down.
In most cases, property values appreciate in the long term.
But, of course, there is always a certain amount of risk in real estate.
When your house appreciates you have more equity to borrow against, and you'll see a larger profit when you sell.
There are various reasons why property values in Maryland fluctuate. So, how can you be sure what you're investing in today will appreciate over time?
It's important that you pick a REALTOR® in Maryland who recognizes the factors that affect local prices.
Many are convinced that the economy is the biggest factor impacting real estate appreciation.
interest rates, employment, business growth, government programs and many other national determinants have a noticeable influence on your home's value.
But the most significant things that determine your property's value are specific to the local Maryland economy and residential market.
Access to services - People typically want homes in the areas with the most convenient features, like our schools and work.
So when it comes to keeping their value, these areas consistently appreciate much more reliably than areas lacking key features.
Recent sales - Your real estate agent should give you stats 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 property prices increased or decreased over the past 5 to 10 years? Is the area thought to be desirable because of its location or affordability?
Economic factors - Have businesses moved into or away from an area? Are local businesses hiring? Is there a fair blend of business in an area, or does it rely upon just one industry?
All these play a part.