Home prices are forever in flux.
For the most part, property values appreciate in the long term.
But, of course, there is always a certain amount of risk in real estate.
When your home appreciates you have a greater asset to borrow against, and you'll produce a bigger profit when you sell.
Property values in San Diego rise and fall for various reasons, so how do you know what you're purchasing today won't depreciate the day after you close?
It's important that you select a real estate agent in San Diego who understands the factors that influence local prices.
A lot of people believe that the economy is the top factor affecting real estate appreciation.
Obviously,
there are many factors on a national level that impact your property's value: unemployment, mortgage rates, quarterly earnings reports, and more.
But the most influential things that decide your home's value are specific to the local San Diego economy and residential market.
Location in a community - Many of us prefer to live in regions with the best and most convenient features for households to thrive, such as a close proximity to schools, jobs, and work.
So when it comes to keeping their value, these areas typically appreciate much more reliably than areas lacking key features.
The latest home sales - You should receive reports on the recent real estate sales in the neighborhoods that you're interested in from your real estate agent. You'll want to analyze data like time on market and seller discounts.
Appreciation history - Have house prices risen or declined over the past 5 to 10 years? Is the neighborhood 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 mixture of business in an area, or does it count on just one industry? Is the mix of commercial and residential development changing?
All these play a part.