6 Ways To Prevent Your Property Value From Plummeting in 2025

6 Ways To Prevent Your Property Value From Plummeting in 2025

John Csiszar  Mon, December 30, 2024    GOBankingRates

Property values have had quite a run since the 2020 pandemic, more than doubling in many markets. Between that run-up, high inflation the past two years, persistently high interest rates and the long time since the last recession, some market watchers are concerned about the lofty valuations in certain housing markets. While a true housing crash seems to be unlikely, there are some areas you might want to avoid — or steps you might want to take — to help protect your investment. Here are some suggestions.

Avoid Condos in Oversaturated Markets

When you buy a condo, you don’t own the land that your property sits on. Technically, you own a fractional interest in the complex’s common areas, but your ownership rights are different than if you buy a townhouse or a stand-alone home.

 In those cases, you own the lot where your property sits, giving you additional value and freedom to do as you wish with your structure. This can make condos less valuable properties to own, particularly in oversaturated markets.

To maintain your property value if this is your ownership situation, find ways to make your condo stand out, by renovating or otherwise maintaining your property in a manner that puts it head and shoulders above any competing units.

Spruce Up Your Older Home

All other things being equal, new homebuyers will usually want fancy new homes over those that are old-fashioned. If your home has an old floor plan, old-fashioned colors and no technological upgrades, investing some money in upgrades can be a good way to keep your home current and up its value. Even somewhat mundane improvements like new windows or fresh paint can help protect your property value.

Stay Out of Areas With Constant New Builds

If you notice the constant building of new homes in your area, it can be a warning sign that your property value may decline — or at least not rocket higher. Although increasing demand is a good thing in the real estate market, when supply matches that demand — or even exceeds it — there’s no push to drive prices higher. In fact, oversupply can often be a trigger that pushes prices lower. The ideal situation is to own property in an area in which new builds are restricted or limited, either by geography or by legislative decree.

TO READ MORE:  https://www.yahoo.com/finance/news/6-ways-prevent-property-value-230019632.html