This article is the first in a three-part series looking at home values in Banner Elk, Blowing Rock, and Boone neighborhoods.
If you're like most buyers looking to purchase a home, likely one of your top concerns is, of course, resale value. With the real estate bubble explosion of 2007 - 2009 still very fresh in consumers' and lenders' minds, it's very wise to sort your top home wants and desires by the locations and local environments most likely to give your real estate transaction an "A" - an "A" for "appreciation" of course.
Definition-wise, appreciation is simply the increase in value for a home or land. Simply put, if you buy a home that's likely to appreciate, you'll always be building equity in your investment, have an easier time reselling the home and be better leveraged to borrow against it in the future.
So, what affects appreciation? Well, many factors:
- The other homes around it
- The national economy's ups and downs
- External local conditions (e.g. job market)
- Future area development plans
- Government zoning
- It's physical condition and features
- Changes in lending practices for home loans
- It's location
While it's important to take all the above into account, one of the factors matters significantly more than the others: a home's location.
When it comes to choosing one home over another, there's very little anyone can control about a home's location. You may absolutely love a particular home, but, if it's outside a zone that's healthy when it comes to future appreciation of value, you'll be stuck with a bad investment that can drain cash from your wallet or pocketbook.
And, yes, homes do "depreciate" too. Sometimes to the point where what you owe is a lot more than what a home is worth.
Boone, NC Home Value Appreciation Outlook
Of late, real estate activity in Boone has been red hot despite the cooling temperatures of Winter. The growth of Appalachian State University, a brand new medical school being built and a booming 2nd home market of mountain home seekers among many other factors has led to more interest.
So, how has that affected Boone area home values and future appreciation outlooks? Let's take a quick look at the data.
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Boone Home Appreciation Analysis - November 2017[/caption]
As you can see from the above view that's an overview analysis of all Boone neighborhoods, the city is feeling the effects of these new developments. Appreciation is beginning to trend up across the board and is up a whopping 36.45% since 2000. As we all know from grade school math, averages are very sensitive to high and low values, so specific neighborhoods inside Boone are really starting to significantly appreciate (contact me for metrics on any street or neighborhood!).
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Boone Neighborhood Appreciation Since 2000[/caption]
Speaking of 2000, 7 neighborhoods, in particular, have appreciated more than others. At the top, the Meat Camp/Pottertown area and the areas around Appalachian State are gaining value the fastest and to the highest amounts. Investment time, anyone?
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Most Expensive Boone Neighborhoods - November 2017[/caption]
Over time, appreciation leads, of course, to desirable neighborhoods with higher home values. Right now in Boone, the appreciation of the last decade or so has driven the Blowing Rock area of Boone to the top of the list when it comes to home values. Notice the #7 entry in the list above? Where will prices in that area be in 5 years? I think I know.
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Average Home Values in Boone - November 2017[/caption]
Despite an appreciation rate of almost 40% in the last 20 years, average home prices remain very affordable in Boone. This, too, is affecting home values and prices by being one of those factors that are contributing to increased interest in Boone.
That said, we all know what happens to prices - and values - over time as demand increases and supply of homes drops.
It's a great time to invest in Boone. Whether it's a permanent residence, a vacation home or a student rental to use as in income-producer, picking the right neighborhood can really pay off for you over time as our area appreciates.
If you're thinking of buying, contact me today for a street-level, data-driven report on your desired home's appreciation potential. It's a $50 value, all for free.
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