Home prices are continually changing.
Over a long enough period of time, home values , in most cases, appreciate.
But, of course, there is always a certain amount of risk in real estate.
When your property appreciates you have a bigger asset to borrow against, and you get a bigger profit when you sell.
There are numerous reasons why property values in Minneapolis waver. So, how can you be sure what you're buying today will appreciate over time?
The most important aspect to consider is that you go with a REALTOR® in Minneapolis who understands the factors that drive local prices.
A lot of people assume that the economy is the biggest factor affecting real estate appreciation.
interest rates, employment, job growth, government programs and a handful of other national determinants have a definite effect on your property's worth.
But the most influential things that figure your house's value are specific to the local Minneapolis economy and housing market.
Location in a community - Being close to schools, work and amenities like shopping, restaurants and entertainment is a big deal to many buyers and will greatly influence home values.
So when it comes to keeping their value, these communities typically appreciate much more reliably than areas lacking key features.
Recent sales - Your agent should give you reports on the recent home sales in the areas that you're interested in. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the last 5 to 10 years, have home prices gone up or down? Does location or affordability affect how desirable the area is thought of as?
The local economy - Are local businesses hiring? Have businesses moved into or away from an area? Is there a fair mix of job types in an area, or does it rely upon just one industry? Is the mix of commercial and residential zoning changing?
All these play a role.