Big Lake home prices: Need some help understanding why they appreciate?

Over time, the value of a property will fluctuate up and down. Over a long enough period of time, property values , by and large, appreciate. But, in real estate there are no "sure things".

When your home appreciates you have a bigger asset to borrow against, and you'll create a bigger profit when you sell. Property values in Big Lake go up and down for many different reasons, so how can you be sure what you're purchasing this year won't depreciate the day after you close? Choosing an agent in Big Lake who understands the factors that affect local prices is the most important aspect.

Many believe that the economy is the most crucial factor impacting real estate appreciation. Obviously, there are several factors on a national level that affect your home's value: unemployment, interest rates, the stock market, and more. However, your property's value and the components that play the biggest role in its appreciation are specific to the local Big Lake economy and housing market.

Location in a community - Proximity to work and schools also have a major effect on all home buyers' choices. So these areas usually appreciate, or retain their value consistently, year to year.

The latest home sales - You should receive facts and figures on the recent real estate sales in the areas that you're interested in from your agent. You'll need to analyze things like time on market and asking price as opposed to selling price.

The appreciation history - Is the community thought to be desirable because of its location or affordability? Have home prices increased or decreased over the past 5 to 10 years?

Local economy - Is there a fair mix of work in an area, or does it count on just one industry? Have companies moved into or away from an area? Are local businesses hiring? All these play a part.