Let us help you understand how home values change in Tucson and the surrounding communities. Almost always, home values will appreciate in the long term – but there is always a certain amount of risk in real estate.
When your home appreciates, you have a greater asset to borrow against if needed or a higher net gain when you sell. Many factors will affect property values in the Tucson area and cause them to go up and down. So, how do you know what you’re investing in presently will appreciate over time? Make sure you select an agent who can identify the factors that affect local prices.
The economy is believed to be the number one factor affecting real estate appreciation. Obviously, there are a lot of issues on a national level that affect your home’s value: unemployment, mortgage rates, inflation, and more. But the most significant issues that decide your home’s value are specific to the local economy and housing market.
Location – Each phase of life brings different priorities. Is it important to be near work, activities and restaurants? Schools, playgrounds and grocery stores? Golf course and community activities? Homes in these regions usually appreciate year to year.
Size – Is your house the biggest in the neighborhood? Size matters! When it comes to real estate smaller homes will sell for more per foot than bigger homes and appreciate faster. Value-wise, you’re always better off owning a smaller home in a nicer neighborhood than the biggest on the block.
Floor-plan and Updates – Homes that are well maintained and updated will appreciate faster than homes that have a lot of “deferred maintenance”. Flexible floorplans that allow for visual connection and indoor/outdoor spaces also add value. Keep in mind that while some upgrades will add curb appeal to a buyer don’t always add value to an appraiser!
Inventory – How quickly are houses selling? Are sellers getting their ask price? How many homes are available? Some information can often be retrieved from public records or a trendy real estate site, but a good agent with access to the local MLS will often be able to provide a more complete picture.
Historical Values – Have house prices risen or declined over the past 5 to 10 years? Is the area thought to be desirable because of its location or affordability?
Local economy – Is there a fair mixture of work in an area, or does it rely on just one industry? Have businesses moved into or away from an area? Are local businesses hiring? All these play a role.