Real Estate Explained | What is Appreciation

Posted by Colleen Kulikowski, Licensed Real Estate Salesperson (716) 650-0051 on Jul 14, 2011 in Amherst Homes (Including Williamsville & Snyder), Home Seller Resources | Comments Off

Real Estate appreciation is the increase in value of your home and the property. In the United States since 1968 Real Estate Median Sales increased, but as the current Real Estate market shows, there is no guarantee that you home will appreciate.

Why Now

It is no secret that economy is affects real estate appreciation in the U.S. So if the economy is not doing well housing will be affected negatively. The things in the economy that will affect housing appreciation include:

• current interest rates
• what is happening on Wall Street
• the current employment rate
• business growth in the area
• housing supply and demand
• housing affordability

Factors Affecting Appreciation

There are many factors that will affect appreciation in an area in addition to regional economic and social factors. Two communities right next to each other can perform differently for a variety of reasons. Western New York home buyers select to live in areas with the best and most convenient features for the way they want to live. Important factors in their decision to purchase a home include:

• Schools – good schools foster a sense of community
• Jobs – are there opportunities to earn a great living
• Lifestyle – convenience to shopping, cultural and recreation activities

Although appreciation is nice to have, it should not be the reason you decide to buy a home in a particular area of Western New York. Even if you buy a house in a rapidly appreciating area, there is no guarantee that its value will rise by the time you want to sell it. Just take a look at what is happening in Florida, Colorado and California. Western New York home sales are happening and values for the most part are remaining constant. The areas that are seeing the decline saw a rapid increase so they currently are undergoing a correction. Check out our complete list of current market reports for a picture of what is happening in each of the communities in Western New York.

One of the great reasons to live in Western New York, besides the great people that live here, is that it has had slow appreciation over the years. We have not gotten on that roller coaster that the rest of the country seems to be on right now. That’s why it’s best to pick a neighborhood – and a home – in an area that suits your own needs.

Interested in finding out what your home is worth today? Call me at (716) 650-0051 to get a free Comparative Market Report or fill out this form and I will email it directly to you!