How Does it Work
Real estate appreciation simply put is the increase of a property’s value over time. There are a variety of factors that contribute to such an increase, and the same factors can cause a home to lose value as well. The 25-year average appreciation rate of U.S. homes is 3.9%. Factors that contribute to home value appreciation are:
- Amenities
- Condition
- Size
- Location
- Supply and Demand
- Economy
- Interest rates
- Inflation