A variety of factors can cause a home to depreciate in value… and some of these factors are beyond the control of the homeowner.
Real estate values are effected by the overall health of the economy. Economic weakness can lead to higher rates of unemployment, which means fewer qualified buyers in the marketplace and a surplus of properties for sale… which can lead to longer selling times and lower selling prices.
Mortgage interest rates play a significant role in whether property values increase or decrease.
Changing demographic characteristics of an area can also effect prices and what types of homes are in demand.
Short sales and foreclosures in an area can lower property values by distorting the prices homes are selling for, especially when appraisers use foreclosed homes as comparable sales.
Other factors, such as property damage from severe weather or high real estate taxes can also cause homes to depreciate. Contact your REALTOR® if you have any questions about your home’s value.
