Home Ownership

Southwest Michigan home prices: Need some help understanding why they appreciate?

Over time, the worth of a home will go up and down. Over a long enough period of time, property values normally appreciate. But, in real estate there are no "sure things".

When your home appreciates you have more equity to borrow against, and you'll generate a greater profit when you sell. But how will you be sure what you're buying right now will appreciate over time? Property values in Southwest Michigan vary for various reasons. It's critical that you select a real estate agent in Saint Joseph who recognizes the factors that affect local prices.

Many think that the economy is the greatest factor impacting real estate appreciation. It goes without saying that there are a handful of factors on a national level that impact your home's value: unemployment, interest rates, business growth, and more. But the most significant factors that figure your house's value depend on the local Saint Joseph economy and residential market.

Location in a community - Proximity to schools and jobs also have a major influence on most home buyers' choices. So these areas consistently appreciate, or carry their value, best.

Recent home sales - You should receive reports on the recent real estate sales in the areas that you're asking about from your REALTOR®. You'll need to analyze figures like how long a house stays on the market and seller discounts.

History of appreciation - In the past 5-10 years, have house prices increased or decreased? Does location or affordability affect how desirable the community is believed to be?

The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a fair mixture of job types in an area, or does it count on just one industry? Is the blend of commercial and residential zoning changing? These items play a part.