Let's talk about Home Appreciation!
When you hear the phrase "price appreciation," what does it mean to you? Chances are you know it has to do with rising home prices, which is good news if you are considering selling your home. But to truly understand home price appreciation, you need to know how it works and why it matters to you.
Appreciation, in general terms, is an increase in the value of an asset over time. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease in value over time.
When we consider how this applies to real estate, the key words are SUPPLY and DEMAND. In today's real estate market, we're experiencing high demand for homes, and a low supply that isn't keeping up with that demand. Anytime there is more demand than supply, prices naturally rise. It happens because buyers are willing to pay more to secure the property. Buyers are competing with one another to purchase a home, leading to bidding wars that drive prices up. For sellers, the rising prices mean that opportunity is knocking.
The typical national average home price appreciation rate is between 3-5% a year. Today, home prices are appreciating well beyond the norm thanks to high demand. Compared to the normal pace of 3-5% appreciation per year, the current average forecast of nearly 11.5% is significant, and some areas in the Las Vegas Valley have seen almost double that!
So, if you are considering selling your home, it may be worth more than you realize. You can use your increased equity to finally purchase your dream home, or you can put it toward other big goals like funding an education or opening a business.
But don't wait. While price appreciation is strong now, most likely we will see homes appreciating at a more normalized pace next year. If you sell your house sooner rather than later, you'll be in a better position to capitalize on the higher-than-average home price appreciation we're seeing today.
If you're thinking of selling, there really is no time like the present. Call or email me today and I will provide you with the up-to-the-minute market analysis of your home and its potential. I'm here to help, and I'm looking forward to working with you!Laura Harbison, ABR, AHWD, BPOR, BS, CDPE, CRS, DRB, GRI, PSA, RSPS, SRES
Broker/Owner REALTY EXECUTIVES SOUTHERN NEVADA PROPERTIES
License Numbers B.0026537LLC PM.0164922.BKR