I'm often asked about appreciation, so I wanted to talk about how you can predict the annual appreciation or depreciation for your real estate investment.
My team and I study the market daily to predict appreciation rates for our clients. We look at sales over the last year compared to the current inventory, and based on this, we can determine the months of inventory.
Because real estate is very location-driven, the months of inventory will change from neighborhood to neighborhood. Months of inventory will determine the appreciation (or depreciation) rate you can expect for your home or investment. The future prospects for your chosen neighborhood can have a big impact on price.
If a big development is planned, such as a big mall or an extension of a light rail or highway, or there's a new company moving to the area, the prospects of future appreciation look good. Even small developments like plans to add a road or a small school are good signs. On the other hand, if grocery stores and gas stations are slowly closing down, then you can probably determine that home values will depreciate, and you might consider moving out of the area.
If a big development like a mall or light rail is planned, appreciation could go up.
New developments in housing can take it either way. If the area is hot, it's likely in high demand and increasing your home's value. However, if there is a surplus in new development (like a lot of new construction that you're competing against), it could hurt the value of your home and your appreciation.
If a builder came in and bought land at a very good value and started developing a lot of homes and devaluing homes in the surrounding area because of what they started selling those homes at, it could have a negative impact on you.
If you'd like a report about appreciation rates in your specific area, I'd be more than happy to put one together for you at no cost. If you have any questions about the Charleston market, give me a call or send me an email. I look forward to hearing from you!
Author:Dave Friedman Voted Best Realtor in Charleston Phone: 843-480-9737 Dated: October 10th 2016 Views: 240 About Dave Friedman: Voted Best Realtor in Charleston and top finalist every year since 2013, it is easy to say that Dave...
View our latest blog posts in your RSS reader. Click here to access.
The Dave Friedman Team at Keller Williams employs full time, highly productive, experienced and educated brokers focused on serving their real estate clients and communities at the highest possible level to create the best possible result. We provide accurate, detailed information, data and advice so that our clients make informed decisions. We're committed to life long relationships founded in integrity and mutual respect. We're here to help at all stages in all situations.