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

Over time, the value of a piece of real estate will fluctuate up and down. House values appreciate in the long term in most cases. 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 generate a greater profit when you sell. There is a variety of reasons why property values in Charlotte go up and down. So, how do you know what you're investing in now will appreciate over time? The most important part is that you go with a REALTOR^® in Charlotte who understands the factors that drive local prices.

The economy is assumed to be the top factor impacting real estate appreciation. Naturally, there are quite a few factors on a national level that alter your home's value: unemployment, interest rates, inflation, and more. However, your home's value and the aspects that play the most significant role in its appreciation depend on the local Charlotte economy and housing market.

Location in a community - Many of us want to live in districts with the most convenient amenities for households to succeed, like a close proximity to schools, jobs, and work. So when it comes to retaining their value, these areas often appreciate the best.

Real estate sales trends - How long are homes up for sale before closing? Are sellers needing to discount much? Some information can be retrieved from public records, but a good agent with a login to the local MLS will often provide a more complete picture.

The appreciation history - Is the neighborhood believed to be desirable because of its location or affordability? Have house prices risen or declined over the past 5-10 years?

Local economy - Is there a nice mixture of jobs in an area, or does it rely upon just one industry? Have companies moved into or away from an area? Are local companies hiring? These items play a part.