Over time, the value of a house will fluctuate up and down.
Typically, home values appreciate in the long term.
But, in real estate there is always a certain amount of risk.
When your house appreciates you have a larger asset to borrow against, and you'll see a higher profit when you sell.
There are different reasons why property values in Colorado Springs shift. So, how do you know what you're purchasing this year will appreciate over time?
The most important aspect to consider is that you pick a real estate agent in Colorado Springs who understands the factors that influence local prices.
A lot of people believe that the economy is the number one factor affecting real estate appreciation.
Clearly,
there are a lot of factors on a national level that change your property's value: unemployment, mortgage rates, consumer confidence, and more.
However, your house's value and the factors that play the most significant role in its appreciation depend on the local Colorado Springs economy and housing market.
Location in a community - Convenient access to schools, jobs and amenities like shopping, restaurants and entertainment is a big deal to many buyers and will greatly influence home values.
So those communities consistently appreciate, or keep their value, best.
Prior home sales - What's the time on market? What was the selling price versus the asking price? A lot of data can often be obtained from public records, but a good agent with a login to the local MLS will usually provide a more complete picture.
The appreciation history - Is the area believed to be desirable because of its location or affordability? Have property prices increased or decreased over the last 5-10 years?
Local economy - Is there a fair mixture of jobs in an area, or does it depend on just one industry? Have companies moved into or away from an area? Are local businesses hiring?
All these play a role.