Personal Finance: Three Signs Property Might Start Appreciating

You can't always tell just from looking at a property whether it is set to rise in value, but certain trends will help you made a very good guess.

Most real estate investors no longer rely on appreciation in order to generate income. However, if you are investing for the long-term, then the tendency of real estate values to rise over time still bears some consideration before you buy. According to a new report by Fiserv, several of the worst-hit areas in the country could soon be sporting fantastic appreciation if certain trends continue. Those areas include Madera, California; Medford, Oregon; and Yuma, Arizona. Here are the signals and trends that Fiserv used to come to these conclusions:

1. Serious Pain in the Recent Past
   These cities all were hit hard during the housing crisis and suffered through some of the biggest drops in home prices in the country. Now, prices are so low that analysts think there truly may be nowhere to go but up.
2. Active Investors Out in Force
   Now that prices appear to be near bottom, the investors are coming out to help jump-start these markets. By buying up properties and even bidding against each other in some cases, investors are attracting the attention of other buyers to the area, which will ultimately likely drive up home prices in the coming year.
3. Improving Jobs Numbers
   While unemployment remains a problem in areas like Madera, cities where jobs numbers are on the mend – but not yet “mended,” so to speak – are often areas where people will soon be moving in search of employment.

Do you consider appreciation at all when you invest in real estate these days? Is it a must or an added bonus?

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