Over time, the value of a house will fluctuate up and down.
Over a long enough period of time, property values typically go up.
But, in real estate there are no "sure things".
When your property appreciates you have a bigger asset to borrow against, and you'll create a better profit when you sell.
Property values in San Diego rise and fall for a variety of reasons, so how do you know what you're investing in this year won't depreciate the day after you close?
It's imperative that you choose a REALTOR® in San Diego who can identify the factors that influence local prices.
What is the number one factor affecting real estate appreciation? Many believe that it's the economy.
Clearly,
there are numerous factors on a national level that affect your property's value: unemployment, interest rates, business growth, 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.
Access to services - Proximity to schools, jobs, and amenities also have a great influence on almost all home buyers' choices.
So those communities consistently appreciate, or hold their value consistently, year to year.
Recent home sales - You should receive figures on the recent real estate sales in the neighborhoods that you're interested in from your REALTOR®. You'll want to analyze data like time on market and seller discounts.
The appreciation history - Is the area considered desirable because of its location or affordability? Have home prices risen or declined over the past 5-10 years?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a good mix of work in an area, or does it rely on just one industry? Is the mix of commercial and residential development changing?
All these play a role.