Home values are continually changing.
In most cases, house values appreciate in the long term.
But, of course, there is always a certain amount of risk in real estate.
When your house appreciates you have a more valuable asset to borrow against, and you make a higher profit when you sell.
There are different reasons why property values in San Diego shift. So, how can you be sure what you're investing in presently will appreciate over time?
Choosing a real estate agent in San Diego who recognizes the factors that influence local prices is the most important thing.
What is the major factor affecting real estate appreciation? Many believe that it's the economy.
Obviously,
interest rates, employment, job growth, government programs and many other national factors have a measurable influence on your house's worth.
However, your property's value and the things that play the most significant role in its appreciation depend on the local San Diego economy and housing market.
Location in a community - Being close to schools, jobs and amenities like shopping, restaurants and entertainment is a priority to many us and will greatly influence home values.
So those regions generally appreciate, or carry their value consistently, year to year.
Recent home sales - How long are homes on the market? Are sellers having to discount much? A lot of data can be obtained from public records, but a good agent with access to the local MLS will often be able to provide a more complete picture.
The appreciation history - Is the community thought to be desirable because of its location or affordability? Have property prices risen or declined over the last 5-10 years?
Local economy - Is there a fair mix of business in an area, or does it rely on just one industry? Have businesses moved into or away from an area? Are local businesses hiring?
Each of these factors plays a role.