There are a number of factors that influence price appreciation for your home. Trends in the real estate market, economic shifts, and the condition of your home, all can contribute to gaining a value increase. Here are some influencing factors to keep an eye on.
TRENDS IN THE REAL ESTATE MARKET.
SUPPLY AND DEMAND OF HOMES.
When buyer demand exceeds the supply of homes for sale, your property value increases. As buyers compete in bidding wars to score a home in a very tight market, it drives the final sales price up.
In the local real estate market, demand is currently strong for homes in Oconomowoc and the Lake Country area. The total number of listings are significantly down, compared to previous months. As a result, we are seeing a solid seller’s market and a remarkable growth rate of median prices.
Recent sale prices of comparable homes in your surrounding area are taken into account, when appraisers and real estate agents determine your home’s value in the current market. When homes sell for more money, home prices are pushed up, allowing you to set a higher initial listing price.
Want to know what your neighbor’s home recently sold for? Check out sold listings on our website.
Despite the economic distresses that spawned from the pandemic last year, 2020’s housing market was robust. However, property values are deeply influenced by economic factors that directly relate to buyer demand including:
When mortgage rates are low, more buyers enter the market, eager to lock in a low, fixed rate mortgage that could save them thousands of dollars over the lifetime of the loan. Your property value will rise if buyer demand exceeds the amount of housing for sale in your area.
In Oconomowoc’s current real estate market, historically low mortgage rates are fueling buyer demand, and there are significantly less new listings coming on the local market than usual. This combination has accelerated median price growth for homes in the area. Check out the chart below illustrating today’s historically low mortgage rates.
When people gain financial and job stability, buyer demand often increases. More renters may be able to afford purchasing a home, and existing homeowners may consider moving to their next home. If there is strong job growth and creation in your region, incoming workers competing for housing help increase property values.
Modifications to the workplace, fast tracked by the pandemic, has allowed more people to work from home. This trend has encouraged many to move out of busier metro areas, to more suburban communities such as Oconomowoc, increasing demand for housing in the area.
YOUR HOME AND LOCATION.
The condition and buyer appeal of your house both play a role in your property’s value.
Livable space: When you expand your home’s livable square footage, it raises the value of your home. Additions, and finishing your basement and attic improves your home’s worth. Enlarging your kitchen and increasing the number of bedrooms and bathrooms add the most value.
Upgrades: Larger upgrades can add value and buyer appeal to your home such as a new high efficiency HVAC system, repairing or replacing your roof, and new energy efficient windows.
Renovations: Modernizing your home can help boost buyer interest and add worth. Add to your resale value by remodeling your kitchen if it’s outdated, create a more open floor plan, update old fixtures, add or improve a deck, and paint your walls with a fresh coat of paint.
Landscape and curb appeal: Well landscaped homes are worth more than those without, and can support a higher listing price. Besides your yard, consider the condition of the exterior of your home.
Property values fluctuate at different rates in different communities. There are a variety of location-based influences that can affect your property value.
Distance to parks and nature. If your home is adjacent to a park or conservancy, it will hold a higher value, even compared to other homes less than a mile away. Nonetheless, homes in close proximity to outdoor recreational opportunities and nature still retains buyer appeal.
School District. The quality of your local school district affects your home’s resale value, as it directly impacts buyer demand. A large percentage of buyers are strongly influenced by the quality of the local schools.
Access to Amenities. Having convenient access to major highways and amenities can add value to your property. If you live in an up-and-coming area, commercial development can help boost your home’s worth.
Sense of Community. Many home buyers desire living in an active and social community. Localities that host community events and social opportunities for residents, can help make the area a desirable place to live. These areas can see an increase in buyer demand, and amplify local property values.
If you have questions about the local real estate market, or curious to know what your property could sell for in today’s market, please don’t hesitate to submit an inquiry below or contact one of our agents directly.