Over time, the value of a house will fluctuate up and down.
Over a long enough period of time, house values typically go up.
But, of course, in real estate there is always a certain amount of risk.
When your house appreciates you have more equity to borrow against, and you'll realize a higher profit when you sell.
There are different reasons why property values in Naples go up and down. So, how can you be sure what you're buying presently will appreciate over time?
Choosing an agent in Naples who can identify the factors that affect local prices is the most important thing.
The economy is believed to be the major factor affecting real estate appreciation.
mortgage rates, unemployment, business growth, government programs and numerous other national determinants have a definite effect on your home's value.
But the most significant issues that determine your house's value depend on the local Naples economy and housing market.
Access to services - Proximity to schools and jobs also have a major effect on most home buyers' decisions.
So those regions typically appreciate, or hold their value consistently, year to year.
Recent home sales - How fast are homes selling? Are sellers needing to discount much? Some information can be obtained from public records, but a good agent with access to the local MLS will usually provide a more complete picture.
History of appreciation - In the last 5 to 10 years, have home prices risen or declined? Does location or affordability affect how desirable the neighborhood is thought to be?
Economic factors - Have businesses moved into or away from an area? Are local businesses hiring? Is there a fair blend of business in an area, or does it rely on just one industry?
Each of these items plays a part.