Over time, the worth of a piece of real estate will fluctuate up and down.
Almost always, home values appreciate in the long term.
But there is always a certain amount of risk in real estate, of course.
When your house appreciates you have more equity to borrow against, and you'll produce a better profit when you sell.
But how do you know what you're buying today will appreciate over time? Property values in Miami rise and fall for numerous reasons.
The most important factor is that you go with a real estate agent in Miami who recognizes the factors that drive local prices.
Many are convinced that the economy is the biggest factor affecting real estate appreciation.
It goes without saying that
there are numerous factors on a national level that adjust your property's value: unemployment, interest rates, the stock market, and more.
However, your house's value and the factors that play the most significant role in its appreciation are particular to the local Miami economy and housing market.
Location in a community - Many home buyers decide to live in areas with the most helpful features for homes to succeed, such as a close proximity to schools and work.
So when it comes to keeping their value, these communities often appreciate much more reliably than areas lacking key features.
Real estate sales trends - Are homes on the market 30, 60, or 90 days or even longer? What was the selling price compared to the listing price? A lot of data can be obtained from public records, but a good agent with access to the local MLS will usually provide a more complete picture.
The appreciation history - Is the neighborhood believed to be desirable because of its location or affordability? Have property prices increased or decreased over the past 5-10 years?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a good blend of work in an area, or does it rely on just one industry?
Each of these factors plays a role.