7 Signs Your House is Losing Value
As a homeowner, it always pays to keep your eye on the local real estate market. Whether you are planning to sell in the near future or you just want to stay up-to-date with recent home prices, it’s good to keep track of what your home is worth.
Most properties have been steadily appreciating in recent years. With significant inflation on the horizon and a fragile economy coming out of the pandemic, the future of home values is a little less certain. Here are a few signs you can look for to know if your house is starting to lose value and if it may be time to sell and move on:
1. Property Tax Bill
Your property tax bill can tell you a lot about your house’s value. It usually won’t go up at full appreciation rates, which is a good thing. However, it can be a bit of a red flag if your tax bill is lower this year than it was the previous year(s). That means the county appraiser thinks your house is worth less now than it was before.
2. Outdated Features
Today’s home buyers want houses that are updated and upgraded with certain modern amenities. Look at your light fixtures, appliances, insulation, windows/doors, flooring and finishes. Also, take a hard look at your kitchen and bathrooms. These are all things that can make a house feel behind the times and can ultimately decrease its selling value in the current market.
3. Market Activity
Pay attention to other homes that are selling in your neighborhood. Watch the pricing trends and observe how long they stay on the market. These are good indicators that the market around you is either doing well or starting to get weaker. You can also look at the appearance of your neighbor’s houses. If things are starting to feel run-down around you, it will affect your house’s value. The same goes for local parks and public areas, as well as crime rates. It’s not hard to see when an area is starting to go the wrong way.
4. Buyer’s Market Conditions
We’ve been in a seller’s market in recent years because of low mortgage rates and low housing inventory. This has helped drive home prices up in most places. However, real estate has a way of self-correcting over time. A buyer’s market may be around the corner. This is when buyer demand is down and housing inventory is up. This creates more seller competition and better conditions for buyers, and it also means home values will level out or start to decrease.
5. Businesses Are Closing
Another indicator of a struggling market is when businesses start closing around you. As the local economy is effected, so will home prices in your area.
6. More Rentals or Foreclosures
Another sign of houses losing value is an increase in rental properties in your neighborhood. This often means that sellers are struggling to sell, so they end up renting instead. Or, they are selling for less to real estate investors who then use the property as a rental. You may also see an uptick in foreclosures, which is never a good sign for the market.
7. You Are Struggling to Sell
Perhaps your house is already up for sale, but it is not getting much attention. It has been on the market for awhile with little interest. This is definitely a sign that you are priced too high and the market around you is losing value.
Many homeowners prefer to turn a blind eye to the negative trends that may be affecting the quality of life in their neighborhood and ultimately hurting their house’s value. Just keep an eye out for some of these signs to let you know if and when your house is losing value. This may make you want to wait and sell later, or you may want to sell soon if you are worried about things getting worse.
It never hurts to explore your home selling options. PropertyLark is here to help. We can present you with different solutions based on your specific homeownership and financial situation. Let us help you make the right selling decisions. Contact us today!