What causes West Michigan home prices to fluctuate?

Over time, the value of a property will go up and down. Property values appreciate in the long term generally. But there are no guarantees in real estate, of course.

When your property appreciates you have more resources to borrow against, and you'll see a greater profit when you sell. But how do you know what you're investing in today will appreciate over time? Property values in West Michigan waver for many different reasons. The most important thing is that you choose an agent in West Michigan who knows the factors that influence local prices.

The economy is thought to be the major factor impacting real estate appreciation. Obviously, mortgage rates, employment, business growth, government programs and several other national determinants have a measurable influence on your house's value. But the most important issues that figure your home's value depend on the local West Michigan economy and residential market.

Access to services - Proximity to schools and jobs also have a great impact on many home buyers' choices. So when it comes to retaining their value, these regions consistently appreciate better than others.

Recent sales - Your real estate agent should provide you with statistics on the recent real estate sales in the neighborhoods that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.

The appreciation history - Is the neighborhood believed to be desirable because of its location or affordability? Have home prices risen or declined over the last 5-10 years?

Local economy - Is there a fair combination of business in an area, or does it depend on just one industry? Have businesses moved into or away from an area? Are local businesses hiring? Each of these items plays a part.

It's vital to know the factors that play into your house's market price. Visit this link for an evaluation of your home's value. Please call us at (616) 291-5756 or e-mail us with any questions.