Appreciation is the increase in value on the investment property over time due to inflation, supply and demand, capital improvements and some other factors. When considering real estate investing, determining the rate which properties in certain areas appreciate is one of the first aspects a smart investor will look at. To gain the maximum return, an investor needs to find these areas before they have hit their peak appreciation. The trick is stay ahead of the investing rush.
Real Estate appreciation rates vary from property to property and from one area to another. Factors that affect appreciation include availability of jobs, level of interest rates, availability of land, population changes, desirability of an area, property tax rates and more. The Real Estate Investor should therefore have a good understanding of the factors that cause property to appreciate in value. The seasoned Real Estate Investor will look for a combination of factors that will result in higher than average appreciation growth rates. Here is the list of the Top 20 Metropolitan Statistical Areas and Divisions with highest rates of house price appreciation.