Over time, the value of a house will go up and down.
Home values appreciate in the long term by and large.
But, of course, in real estate there is always a certain amount of risk.
When your house appreciates you have a more valuable asset to borrow against, and you'll produce a greater profit when you sell.
But how will you know what you're investing in right now will appreciate over time? Property values in Miami vary for a variety of reasons.
Choosing a real estate agent in Miami who can identify the factors that affect local prices is the most important element to consider.
A lot of people assume that the economy is the major factor affecting real estate appreciation.
It goes without saying that
mortgage rates, employment, business growth, government programs and numerous other national determinants have a noticeable effect on your home's worth.
However, your property's value and the aspects that play the most significant role in its appreciation are specific to the local Miami economy and housing market.
Location in a community - People typically want homes in the regions with the most convenient places we go often or everyday, like our schools, jobs, and shopping.
So these regions often appreciate, or retain their value, best.
Real estate sales trends - Are homes on the market 30, 60, or 90 days or even longer? What was the selling price versus the asking price? A lot of data can often be obtained from public records, but a good agent with a login to the local MLS will usually be able to provide a more complete picture.
Appreciation history - Have house prices gone up or down over the last 5 to 10 years? Is the neighborhood thought to be desirable because of its location or affordability?
The local economy - Are local businesses hiring? Have businesses moved into or away from an area? Is there a good mix of job types in an area, or does it rely upon just one industry? Is the mix of commercial and residential development changing?
All these play a role.