Understanding property appreciation in Pittsburgh
Over time, the value of a piece of real estate will go up and down. Over a long enough period of time, home values typically appreciate. But, of course, there is always a certain amount of risk in real estate.
When your house appreciates you have a greater asset to borrow against, and you make a higher profit when you sell. Property values in Pittsburgh rise and fall for numerous reasons, so how do you know what you're purchasing right now won't depreciate the day after you close? It's important that you select a REALTOR® in Pittsburgh who is familiar with the factors that drive local prices.
The economy is assumed to be the major factor impacting real estate appreciation. Clearly, there are numerous factors on a national level that alter your house's value: unemployment, interest rates, quarterly earnings reports, and more. But the most significant things that decide your property's value are specific to the local Pittsburgh economy and residential market.
Location in a community - Proximity to schools and work also have a major influence on almost all home buyers' decisions. So these communities generally appreciate, or retain their value, best.
The latest home sales - You should receive figures on the recent real estate sales in the districts that you're interested in from your real estate agent. You'll want to know things like how long a house stays on the market and seller discounts.
The appreciation history - Is the neighborhood believed to be desirable because of its location or affordability? Have property prices gone up or down over the last 5-10 years?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a fair combination of business in an area, or does it depend on just one industry? Is the mix of commercial and residential zoning changing? These items play a role.