Tampa home prices: Need some help understanding why they appreciate?

Over time, the worth of a piece of real estate will go up and down. House values appreciate in the long term in most cases. But, of course, in real estate there is always a certain amount of risk.

When your house appreciates you have a greater asset to borrow against, and you'll generate a better profit when you sell. Property values in Tampa waver for different reasons, so how can you be sure what you're buying presently won't depreciate the day after you close? It's imperative that you pick a REALTOR^® in Tampa who is familiar with the factors that influence local prices.

Many believe that the economy is the most important factor affecting real estate appreciation. It goes without saying that there are a handful of factors on a national level that alter your home's value: unemployment, mortgage rates, quarterly earnings reports, and more. But the most influential things that determine your property's value are particular to the local Tampa economy and housing market.

Location in a community - Many of us wish to live in areas with the most convenient elements for homes to thrive, like a close proximity to schools and work. So those regions generally appreciate, or retain their value, best.

Real estate sales trends - How long do homes typically stay up for sale before closing? Are sellers needing to discount much? A lot of data can be obtained from public records, but a good agent with a login to the local MLS will usually provide a more complete picture.

History of appreciation - In the last 5 to 10 years, have home prices risen or declined? Does location or affordability affect how desirable the community is thought of as?

Local economy - Is there a good combination of jobs in an area, or does it rely on just one industry? Have companies moved into or away from an area? Are local businesses hiring? Each of these elements plays a part.