The Biggest Factors Influencing House Prices
House prices are ever-changing and two identical houses located on adjacent roads would have totally different prices for a variety of reasons. Something as simple as access to a park can boost the value of a home. Knowing the different elements that hold sway over the price of a home can help you make smarter investment decisions, be it from a buying or selling standpoint.
This one is probably a little obvious, you’re probably not going to be too keen on spending the same amount of money on a one-bed apartment as you would on a detached property with grounds (even though this is very much present when comparing very different locations). On average, more space generally means a higher price but is only one of several important elements. The other factors when used in tandem can displace the value that space would otherwise have.
Arguably having a bigger impact on price is the location aspect of a home. Location can vary massively and ultimately plays a huge role in the price of the property. Tiny apartments in central London are notorious for being multiple times the price of a similar-sized property elsewhere. Properties that are based in city centres, districts with a prominent nightlife scene, close to universities or high-quality schools, shopping districts, areas of high employment opportunity or other areas of interest, are likely to command higher prices.
Houses are comparable to cars; they peak in value when either new or upon hitting vintage when it attracts those interested in their historical appeal. As homes age, they begin to decline, making regular maintenance a necessity. Homes that have had major upkeep work done recently tend to rise in price on account of the additional longevity this may provide. Additional aspects that may change the value of a home are the materials used upon construction and technology changes. Older homes would not be as practical as their modern counterparts and homeowners know that an older building may cost them more in terms of renovations and upkeep.
Supply and Demand
As is the case with any market, supply and demand dictate the pricing for each unit. Areas that are home to large residential building projects will likely see the value of each individual house drop due to a steady or even abundance of supply (this is referred to as a buyers’ market). On the other hand, areas, where there is a lack of housing, will see their values rise (this is referred to as a seller’s market).
Ensuring that you take all of these elements into account when either selling or buying will help you choose a fair price for your property as well as help you make smarter property-related investment decisions.
Contact Hadleigh Estate Agents for Properties to Buy & Rent
If you’re looking for a property to buy or rent in Birmingham, then please get in touch with our property experts. Hadleigh is a market leader in the Harborne and Edgbaston areas. Our friendly, experienced, and qualified team of estate and letting agents like to take the time to understand your needs to find out exactly what you’re looking for in a purchase or sale.
Get in touch with us on 0121 427 1213 or you can send us an email here.