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Best places to own a home if you want it to increase in value

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For most people, buying a home is one of the biggest purchases they make in their lives.

And, recently, locations can make a big difference for those looking for a home that will ultimately increase in value. Smart Asset Survey It ranked the real estate market by the growth in value over time.

The study looked at home prices dating back to 1997 in 400 metropolitan areas of the United States and ranked each based on home price growth and price stability.

Texas dominates the top ten, with Austin in first place overall.

In the rankings, SmartAsset focuses on two main factors: price increases 25 years ago and price stability, which is calculated as the probability of a significant price decline of 5% or more at any point in the 10 years after buying a home. Did. In a particular market.

The difference between the top and bottom markets is important.

Studies show that the value of top-ranked Austin homes has increased by an average of 368% since 1997, with a 0% chance of losing 5% of value within 10 years.

Compare with the lowest market, Flint, Michigan. Housing will rise by an average of 83% over the same period, with a 45% chance of losing more than 5% in value within 10 years.

Past performance does not guarantee future results, but this study provides a chronological snapshot of the desirability of a particular market.

As an investment, Austin Homes offers an annual rate of return of 14.72%, which is 9.35% return At the S & P500 at that time. This is significantly higher than Flint, which averaged 3.44% annual revenue over 25 years.

Several other cities, including Boulder, Colorado, also outperformed the year-on-year rise in the S & P index over the last 25 years. Midland, Texas; Rapid City, South Dakota; Fort Collins, Colorado.

Of course, all this assumes that you can afford to buy a home in such an overheated market. Prices vary by region, but the overall cost of housing continues to rise. Average selling prices for existing homes in the United States have risen 15% compared to this time last year, according to data from the National Association of Realtors.

Home sales fell in February, but prices are Staying up The rest of the year.

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