Over time, the value of a home will fluctuate up and down.
Over a long enough period of time, property values generally appreciate.
But, of course, there is always a certain amount of risk in real estate.
When your home appreciates you have a larger asset to borrow against, and you make a greater profit when you sell.
There are various reasons why property values in San Diego go up and down. So, how will you know what you're buying this year will appreciate over time?
The most important thing is that you select an agent in San Diego who knows the factors that influence local prices.
Many think that the economy is the greatest factor impacting real estate appreciation.
It goes without saying that
there are many issues on a national level that alter your home's value: unemployment, mortgage rates, quarterly earnings reports, and more.
However, your house's value and the things that play the biggest role in its appreciation depend on the local San Diego economy and housing market.
Location in a community - Many consumers want to live in areas with the most conducive factors for families to develop, such as a close proximity to schools and work.
So when it comes to keeping their value, these regions typically appreciate the best.
Real estate sales trends - Are homes on the market 30, 60, or 90 days or even longer? Are sellers having to discount much or offer concessions A lot of data can be obtained from public records, but a good agent with a login to the local MLS will often be able to provide a more complete picture.
Appreciation history - Have home prices increased or decreased over the past 5 to 10 years? Is the area thought to be desirable because of its location or affordability?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a good mix of work in an area, or does it depend on just one industry? Is the mix of commercial and residential development changing?
All these play a role.