Why Do Home Prices Fluctuate?
It doesn't matter if this is your first time shopping for homes or your fifth, you've probably noticed home prices tend to shift from year to year, even if no improvements have been made to the home itself. There are several variables at play when it comes to your home value, and it’s a good idea to understand what causes home prices to fluctuate. This way, you can be prepared when looking for a new property and even when you apply for a mortgage loan through Clark County Credit Union.
Location, Location, Location
You might have heard the phrase before, but location really does matter. A more desirable location in real estate will cost more because more people want the property and are willing to pay higher amounts. It's why real estate in Los Angeles cost more than in Montana. It's more populated and near the water. When shopping locally, there are some suburbs that cost more, even if you're in the same area code because it is closer to a more desirable school district or crime rates are lower. All of these variables play a part in a desirable location, and the more desirable locations come with an increased price tag.
Tis' The Season
The season you shop for a house in can play a big role in the overall price of a home. More people are likely to move during the summer. It's easier for families to move when school is out and the weather is better. With more people looking to buy a home, there will be more bidders for desirable houses and, as a result, property values increase.
However, if you shop during the "off season," like during winter months, there are fewer homes on the market. There are also fewer shoppers, which means homeowners may drop the price of their home in order to increase interest. This is especially the case if a house didn't sell during the summer.
The economy plays a part as well. If the economy is down, home prices usually drop as fewer people have jobs (or can afford larger homes). As long as you have your own finances in order, you should be able to land a solid mortgage loan and be able to purchase the right house at a desirable price.
By understanding some of these variables, you can better prepare yourself for home buying. It doesn't matter if you're looking to purchase a home in the coming months or if the decision is years down the road, by keeping these fluctuation points in mind, you can begin your home shopping journey when the prices are more likely to be in your favor. When applying for a mortgage loan, it's better to apply through a credit union as the rates typically are more desirable than what you might receive from a traditional bank. For more information about a Clark County Credit Union mortgage loan, contact us at 702-228-2228, option 1.