Over time, the worth of a piece of real estate will go up and down.
Property values appreciate in the long term generally.
But there are no "sure things" in real estate, of course.
When your house appreciates you have more equity to borrow against, and you'll realize a bigger profit when you sell.
There are many different reasons why property values in Miami change. So, how do you know what you're investing in this year will appreciate over time?
It's imperative that you go with a real estate agent in Miami who is familiar with the factors that drive local prices.
The economy is assumed to be the top factor impacting real estate appreciation.
mortgage rates, unemployment, business growth, government programs and a handful of other national determinants have a definite effect on your property's worth.
But the most important factors that determine your home's value are particular to the local Miami economy and residential market.
Location in a community - People typically want homes in the areas with the easiest access to places we go often or everyday, like our schools, jobs, and shopping.
So these communities often appreciate, or carry their value consistently, year to year.
Recent sales - Your REALTOR® should give you figures on the recent real estate sales in the districts that you're interested in. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have home prices risen or declined over the past 5-10 years? Is the area thought to be desirable because of its location or affordability?
Economic factors - Have businesses moved into or away from an area? Are local companies hiring? Is there a nice mixture of job types in an area, or does it rely upon just one industry?
All these play a part.