When making a decision about buying or selling a home, it is essential to have an understanding of the local real estate market trends. A factor that affects the fair market value of a home is the current trends in the real estate market, since the likelihood that the price of a home will appreciate or fall is part of what determines the benefit one receives from owning the home. If a the price of a home is negotiated without taking into account the market forecasts, the deal might be jeopardized if the real estate appraiser finds that the sales price is not supported by the local market trends and forecasts. In order to avoid this complication, many sellers will hire a real estate appraiser to help them establish the asking and selling price of their home before they listed their home.
According to real estate market data from Trulia, Amarillo home values are significantly higher than their late 2010 post-bubble lows. Despite the national downturn in the housing market, home values have appreciated 19.7 percent during the past five years. Currently, the sales prices are increasing and there appears to be a decrease in the inventory of Amarillo homes on the market. Given there are proportionally fewer distressed properties on the market in Amarillo as compared to other areas of the country, home values are not under the downward pressure caused by the discounted prices of foreclosed properties and short sales.[1]
According to the Home Price index for Amarillo, the forecast for home values for the next year is up, meaning that it is likely that the home values will increase. This methodology used in making this forecast has 79 percent accuracy rate. The three year forecast calls for home values to increase. The methods used for this forecast have historically been 83 percent accurate.[2] This means that real estate appraisers will value a home in Amarillo higher than a comparable home in an area where the home values are forecasted to stay flat or decrease.
Before selling or buying a home, it is wise to consult with a real estate appraiser who can provide you with information about the Amarillo real estate market forecasts and the effects it will have on your property.
[1] http://www.trulia.com/real_estate/Amarillo-Texas/market-trends/ [2] http://forecast-chart.com/estate-real-amarillo.htm