Over time, the value of a property will fluctuate up and down.
Over a long enough period of time, home values normally appreciate.
But there is always a certain amount of risk in real estate, of course.
When your house appreciates you have a greater asset to borrow against, and you'll generate a greater profit when you sell.
There are various reasons why property values in Tulsa move up and down. So, how will you be sure what you're buying now will appreciate over time?
It's critical that you select a real estate agent in Tulsa who recognizes the factors that influence local prices.
A lot of people think that the economy is the greatest factor impacting real estate appreciation.
mortgage rates, unemployment, job growth, government programs and numerous other national determinants have a definite effect on your home's value.
However, your home's value and the aspects that play the biggest role in its appreciation are specific to the local Tulsa economy and housing market.
Location in a community - Many of us prefer to live in regions with the best and most convenient components for homes to grow, such as a close proximity to jobs and schools.
So those regions generally appreciate, or keep their value consistently, year to year.
Recent sales - Your agent should give you data on the recent real estate sales in the neighborhoods that you're interested in. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the past 5-10 years, have home prices gone up or down? Does location or affordability affect how desirable the area is considered?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a nice combination of work in an area, or does it depend on just one industry? Is the mix of commercial and residential development changing?
All these play a part.