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A Look At Home Price Appreciation And What It Means For Sellers | Take Action Properties LLC Blog

Monday, August 16, 2021   /   by Scott Parks

A Look at Home Price Appreciation and What It Means for Sellers

A Look at Home Price Appreciation and What It Means for Sellers


When you hear the phrase home price appreciation, what does it mean to you? Through context clues alone, chances are you know it has to do with rising home prices. And as a seller, you know rising home prices are good news for your potential sale. But let’s look past the dollar signs and dive deeper into the concept. To truly understand home price appreciation, you need to know how it works and why it matters to you.

Investopedia defines appreciation like this:


“Appreciation, in general terms, is an increase in the value of an asset over time. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease in value over time.” 

When we consider this definition and how it applies to real estate, a few words stick out: supply ...

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  a look at home price appreciation and what it means for sellers