Home values are forever in flux.
Typically, property values appreciate in the long term.
But, of course, there is always a certain amount of risk in real estate.
When your property appreciates you have a larger asset to borrow against, and you make a higher profit when you sell.
Property values in San Diego shift for different reasons, so how can you be sure what you're buying this year won't depreciate the day after you close?
It's imperative that you choose a REALTOR® in San Diego who is familiar with the factors that affect local prices.
What is the most important factor affecting real estate appreciation? Many think that it's the economy.
Clearly,
interest rates, unemployment, job growth, government programs and some other national factors have a measurable influence on your home's worth.
But the most significant issues that figure your house's value depend on the local San Diego economy and housing market.
Access to services - Convenient access to schools, work and amenities like shopping, restaurants and entertainment is a big deal to many buyers and will greatly influence home values.
So when it comes to retaining their value, these communities often appreciate the best.
Recent sales - Your real estate agent should provide you with statistics on the recent home sales in the areas that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the past 5-10 years, have home prices gone up or down? Does location or affordability affect how desirable the area is thought to be?
Local economy - Is there a fair mixture of work in an area, or does it count on just one industry? Have companies moved into or away from an area? Are local businesses hiring?
These items play a role.