Real Estate Word of the Day: Appreciation
Posted by Tom Crimmins Realty on
Real Estate Word of the Day: Appreciation
Appreciation is an increase in the worth or value of a property over time, typically due to changes in the market, inflation, or other related economic causes. The increased value of a real estate property may lead to the owner making a profit upon selling it as the property is now worth more money. The opposite of appreciation is depreciation. According to The National Association of Realtors, the median price of homes rose an average of 6.4% per year between 1968 and 2004. Demand is the strongest factor. When the demand for real estate is higher than the supply, its value will go up. A drastic rise in home prices occurred recently between the years 2020 and 2021, where the median sales price of existing homes…
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