Property prices are constantly moving up and down.
Over a long enough period of time, property values , for the most part, appreciate.
But, of course, there are no "sure things" in real estate.
When your property appreciates you have a larger asset to borrow against, and you'll produce a larger profit when you sell.
Property values in Philadelphia move up and down for a variety of reasons, so how will you know what you're investing in now won't depreciate the day after you close?
Choosing an agent in Philadelphia who is familiar with the factors that drive local prices is the most important aspect.
Many assume that the economy is the most influential factor impacting real estate appreciation.
Clearly,
mortgage rates, unemployment, job growth, government programs and many other national factors have a noticeable impact on your property's value.
However, your property's value and the things that play the biggest role in its appreciation are particular to the local Philadelphia economy and housing market.
Access to services - Many home buyers want to live in districts with the best and most convenient factors for families to do well, such as a close proximity to schools and work.
So those regions usually appreciate, or carry their value consistently, year to year.
The latest home sales - You should receive statistics on the recent real estate sales in the neighborhoods that you're interested in from your real estate agent. You'll want to learn figures like how long a house stays on the market and seller discounts.
Appreciation history - Have house prices risen or declined over the past 5-10 years? Is the community thought to be desirable because of its location or affordability?
The local economy - Are local businesses hiring? Have businesses moved into or away from an area? Is there a fair blend of job types in an area, or does it count on just one industry? Is the mix of commercial and residential zoning changing?
Each of these elements plays a part.