Over time, the value of a house will go up and down.
Normally, property values appreciate in the long term.
But, in real estate there is always a certain amount of risk.
When your property appreciates you have more equity to borrow against, and you'll generate a higher profit when you sell.
There are many different reasons why property values in Cumberland fluctuate. So, how will you be sure what you're buying this year will appreciate over time?
It's imperative that you go with a real estate agent in Cumberland who is familiar with the factors that influence local prices.
A lot of people are convinced that the economy is the most influential factor affecting real estate appreciation.
mortgage rates, employment, business growth, government programs and quite a few other national determinants have a measurable effect on your home's worth.
However, your property's value and the elements that play the biggest role in its appreciation depend on the local Cumberland economy and housing market.
Access to services - People typically want homes in the areas with the most convenient amenities, like our schools, jobs, and shopping.
So these regions generally appreciate, or keep their value, best.
The latest home sales - You should receive facts and figures on the recent real estate sales in the regions that you're interested in from your REALTOR®. You'll need to know data like time on market and listing price versus selling price.
History of appreciation - In the past 5 to 10 years, have house prices gone up or down? Does location or affordability affect how desirable the community is thought to be?
Local economy - Is there a fair blend of business in an area, or does it rely on just one industry? Have companies moved into or away from an area? Are local businesses hiring?
Each of these elements plays a role.