Fluctuating home prices in Pittsburgh, Pennsylvania: What causes this?
Real estate prices are constantly moving up and down. Almost always, home values appreciate in the long term. 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 create a greater profit when you sell. Property values in Pittsburgh waver for different reasons, so how do you know what you're buying right now won't depreciate the day after you close? Choosing a REALTOR® in Pittsburgh who understands the factors that drive local prices is the most important aspect.
The economy is assumed to be the most important factor affecting real estate appreciation. Obviously, interest rates, unemployment, job growth, government programs and several other national factors have a noticeable effect on your house's value. However, your property's value and the components that play the biggest role in its appreciation are particular to the local Pittsburgh economy and housing market.
Access to services - Many consumers decide to live in districts with the most conducive factors for households to thrive, like a close proximity to schools and work.
So those communities usually appreciate, or keep their value, best.
Recent sales - Your real estate agent should give you information on the recent real estate sales in the neighborhoods that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have property prices increased or decreased over the past 5-10 years? Is the community considered desirable because of its location or affordability?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a nice blend of business in an area, or does it rely upon just one industry? These items play a role.
