The Economics of it all!
Economy: The state of the economy can also affect property values. When the economy is doing well, people are more likely to have money to invest in property. This can lead to an increase in prices.
Interest Rates: Mortgage interest rates can also affect property values. When interest rates are low, people are more likely to buy property. When the Federal Reserve Bank raises interest rates, mortgage interest rates also rise, resulting in fewer home purchases. This chilling effect on the housing market can also result in lower prices.
Inflation: Inflation is when the prices of goods and services increase over time due to the printing of more money and other factors. This often results in an increase in home and property values. (Mahr, 2022).
To learn more about how real estate can increase, or decrease, in value check out this quick three-minute video.