What causes Phoenix Metro Area home prices to fluctuate?

Real estate values are constantly moving up and down. Home values appreciate in the long term for the most part. But, in real estate there are no guarantees.

When your home appreciates you have a larger asset to borrow against, and you'll realize a higher profit when you sell. Property values in Phoenix Metro Area waver for numerous reasons, so how can you be sure what you're buying this year won't depreciate the day after you close? It's important that you choose a REALTOR^® in Phoenix Metro Area who is familiar with the factors that influence local prices.

The economy is believed to be the greatest factor affecting real estate appreciation. Obviously, mortgage rates, employment, business growth, government programs and a handful of other national factors have a definite effect on your property's value. However, your home's value and the features that play the most significant role in its appreciation are specific to the local Phoenix Metro Area economy and housing market.

Access to services - Most people want homes in the districts with the most useful amenities, like our schools and work. So when it comes to retaining their value, these regions typically appreciate much more reliably than areas lacking key features.

Recent sales - Your agent should give you stats on the recent real estate sales in the districts that you're asking about. You'll want to know average time on market, selling versus listing price and more.

History of appreciation - In the past 5-10 years, have property prices risen or declined? Does location or affordability affect how desirable the neighborhood is considered?

Local economy - Is there a nice mix of jobs in an area, or does it rely upon just one industry? Have businesses moved into or away from an area? Are local companies hiring? These items play a role.