Why Property Value of Houses Goes Down

There is no question that the value of houses has plummeted in recent years. Many home buyers who have bought their homes around 2009 have seen negative equity today. It has been predicted that house values ​​will continue to fall without the visible horizon.

For signs for sale that seem to last forever

Have you ever noticed a large number of “For Sale” signs that have been lifted forever? Most likely the person who sold the house did not get the price they asked for. This is a sign that property values ​​are declining around you.  You can also get the ‘suitable market value on housing’ (which is also known as ‘egnet markedsverdi på boliger’ in the Norwegian language) from various online sources.

A win for home customers

Foreclosures around Your Area

The more homes that enter foreclosures in your area will exponentially affect the value of your home. After one house goes into foreclosure, it usually creates a domino effect that takes over the entire environment.

Unemployment Grows

Large amounts of unemployment, especially in areas that depend on certain declining industries (such as Flint Michigan), will significantly reduce the value of home property. Merced, California, has lost 40.2% of the value of their property year after year, losing the value of the largest house in the country. Their main industry is the mortgage loan business, has dropped significantly and this shows the value of property.

House Conditions

The physical structure of a house is an asset that continues to experience depreciation. The older, the less value he carries. Over time, it requires repairs, additions, and changes in style. Yes, the value of a house can be reduced simply because the design is not stylish. If repairs and renovations needed are not carried out, the value of a house will decrease slightly.