What is your house going to be worth in a few years?

This is one of the great mysteries of the universe.  Home values generally tend to increase over time, but the rate of increase is tied to a wide range of factors.  We have seen rates of increase from 1 to 15% a year in the Upstate. Here are a few of those factors influencing rate for you to think about - some you can control, some you cannot.  

House prices tend to rise more quickly when there is a shortage of homes for sale, and interest rates are low.  The lower interest rates will draw more buyers into the market, where they compete for the smaller number of available houses.  This competition will bid up house prices more quickly.  As long as appraisers keep increasing their values accordingly, your house will benefit from this general market rise.  This has been happening throughout 2020 in the Upstate, as the demand for housing on all price levels and almost all locations has been well above the available supply.  I have had several houses for sale that quickly had multiple buyers competing for the contract, which influenced them to sometimes offer above asking price.

House pricing increases at a slower rate when there is ample inventory and the buyers in the market have choices,  When I first became a Realtor, the market was more like this.  Houses could stay on the market for six months or more, and sellers often had to make pricing concessions in order to obtain a buyer.

The price of a house is also tied to the value of its features.  We have all heard location, location, location as a prime value for real estate.  This has not changed, and certain communities have seen above average increases, but of course, you can't move your house, so your increases from location are not in your control.

Another way you can increase the value of your home is by making upgrades.  This can be as simple as the color of the front door, to entire roof replacement or a kitchen makeover.  There are two reasons to make these changes.  The first is because you want to for your own benefit.  The second is as an investment for the future value of the home.  You might want to check with a Realtor, or investigate some of the real estate websites in order to get a better idea of what really increases value before you make the decision, if it is for investment purposes.

Finally, one way most of us can do at no real cost, is maintenance.  The value of a well kept yard, clean and tidy garages or carports, and well maintained features such as clean roof, windows, etc. should not be overestimated.  

Regardless of the market or your actions, your home should certainly be worth more in two years that it is worth today.  Be encouraged by that, whether you intend to sell or not.