April 20, 2017 (stlrealestate.news) It’s natural to wonder what your home could be worth ten, twenty years into the future. American real estate prices have increased since the founding of the country, and becoming a master of appreciation and how to get the most for your house when the time comes is a special art form. Though different factors are popular for home value at different times, we’re going to look at the constants for quality home appreciation.
If the economy is strong, a home’s value is generally increased 3 to 4 percent every year, driven by natural inflation and natural population growth. From 2011 to 2016, the national housing market was recovering from the Great Recession at a slightly higher speed, with a 6.3 percent growth rate on average. Realtor.com wanted to provide an answer to appreciation with regards to futuristic home value, so they looked at this five-year period and calculated the annual price growth rate of homes with particular features. Though it’s difficult to pinpoint the actual point of appreciation, Realtor.com definitely uncovered from useful trends.
Small is huge right now: Smaller homes are actually appreciating faster than larger homes right now. Homes of less than 1,200 square feet have appreciated at 7.5 percent a year for the past five years. But, homes with more than 2,400 square feet are only inching up at 3.8 percent a year.
Bedroom consolidation: It’s not how many bedrooms you have, it’s how spacious the existing ones are. Americans are having fewer kids today, and they’re not interested in 7 small bedrooms. They want 3 beautiful rooms instead.
Floor space: Even if it’s a small home, people want to have access to space today. Fewer walls are better, and if a home has the ability to take down excess walls, it’s going to help it appreciate.