Over time, the worth of a home will go up and down.
Over a long enough period of time, property values generally go up.
But, in real estate there is always a certain amount of risk.
When your home appreciates you have a bigger asset to borrow against, and you'll realize a better profit when you sell.
But how will you be sure what you're investing in right now will appreciate over time? Property values in Portsmouth vary for a variety of reasons.
It's critical that you pick a real estate agent in Portsmouth who recognizes the factors that affect local prices.
A lot of people think that the economy is the biggest factor affecting real estate appreciation.
Clearly,
there are numerous factors on a national level that adjust your house's value: unemployment, mortgage rates, quarterly earnings reports, and more.
But the most important things that determine your house's value are particular to the local Portsmouth economy and housing market.
Location in a community - Being close to schools, employment and amenities like shopping, restaurants and entertainment is a priority to a lot of us and will greatly influence home values.
So those regions typically appreciate, or carry their value consistently, year to year.
Recent sales - Your real estate agent should provide you with figures on the recent real estate sales in the areas that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the last 5-10 years, have property prices gone up or down? Does location or affordability affect how desirable the area is believed to be?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a nice combination of jobs in an area, or does it count on just one industry?
Each of these pieces plays a part.