Why Do Real Estate Values Fluctuate?

Any or all of the following factors are in a constant state of flux and are important in determining the true value of a property. Please consult a real estate agent for further details on how you can use this information to better understand the process and attend to your own personal needs.

Location

  • Location, Neighborhood, Climate,Schools
  • Proximity to Shopping, Healthcare, Culture
  • Proximity to Water, “Property” or Land characteristics
  • Natural surroundings, topography, power lines, view
  • Density of population
  • Residential area, not commercial,industrial or mixed use neighborhood
  • Town Services and local taxes
  • Crime

General Economy

  • General economy, Inflation and the value of the Dollar
  • Supply and Demand, available inventory
  • Employment
  • Business Cycles
  • Type of Market (Buyer, Seller or Balanced)
  • Multi-year Trend, Intra-year cycle (seasonal factors)
  • Present cost to rebuild

Government Policy

  • Interest Rates, availablity of financing
  • Government Interference
  • Inflation or Deflationary Trends
  • High Taxes

Current Trends and Fads

  • Kitchens and Baths
  • Staging and Illusions, Cosmetics, Landscaping
  • Floor Plan, Obsolescence of Home, Age of Home
  • Condition of home, Features and amenities, Quality
  • Type of Market (Buyer, Seller or Balanced)

Human Emotion and Motivation

  • Motivated Sellers (People problems or Home problems)
  • The Appraisal factor, Available Bank property and Foreclosures
  • “A reason to be there”
  • Fear and Greed