Let's Talk Property Appreciation!
/Let’s Talk Property Appreciation!
It is not secret, real estate prices continue to go up and the market is red hot, but I wanted to break it down for you. Let’s take a look at the price appreciation of residential property here in the Dallas/Ft. Worth market.
As an owner of a home price appreciation is a wonderful thing because your investment goes up in value however maybe as a buyer it may reduce what you can afford. I will show you the trends both over the last 12 years but also break it down year by year so you can see when is the best time to sell or buy.
So the chart I use goes from 2005 up until the end of 2018 and that will show us the trends in that time frame. First you will notice what a normal market looked like from 2005 to about 2008, which was up until the recession. If you include the recession you can go as far as 2013 to see what an overall normal market looked like and what the prices did over that time period. Most of the prices tended to go up at a relatively conservative pace, however right around 2013 demand took off. As you see demand take off so did the prices which is evident in our chart. You will notice the price appreciation during 2013 and even in to 2018 was very much above normal.
However when we look at at the individual year we can see trends as well. I break them down in quarters and even seasons. Fall and winter tend to have less activity and as a result have slower price appreciation. On the other hand look at spring and summer and you immediately notice the upward trend of prices, which is strongly connected to an increase in demand from buyers. This is a perfect example of why I tell buyers fall and winter are the best times to buy while spring and summer are the best times to sell.
There are many ways to look at how price appreciation happens but I thought this was an easy way to show it to you. I hope you learned a thing or two from this chart and can better understand where prices are and how they move in relationship to time of the year.
With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate. I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.
Have questions about this or other topics, don not hesitate to contact me.
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Luis Cuevas, Realtor®
RE/MAX Cross Country
1990 Justin Road
Highland Village, Texas 75077
(214) 783-0535
Luis@MakeNorthTexasHome.com
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