Over time, the value of a house will go up and down.
Over a long enough period of time, property values normally go up.
But there is always a certain amount of risk in real estate.
When your property appreciates you have a more valuable asset to borrow against, and you'll generate a bigger profit when you sell.
Property values in San Diego waver for different reasons, so how can you be sure what you're investing in today won't depreciate the day after you close?
It's critical that you choose an agent in San Diego who is familiar with the factors that influence local prices.
The economy is assumed to be the major factor impacting real estate appreciation.
Clearly,
there are quite a few issues on a national level that adjust your home's value: unemployment, mortgage rates, consumer confidence, and more.
However, your home's value and the factors that play the biggest role in its appreciation depend on the local San Diego economy and housing market.
Access to services - Proximity to work and schools also have a huge influence on most home buyers' choices.
So these regions generally appreciate, or keep their value, best.
Recent sales - Your agent should give you information on the recent real estate sales in the neighborhoods that you're interested in. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the last 5 to 10 years, have house prices gone up or down? Does location or affordability affect how desirable the community is considered?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a good combination of jobs in an area, or does it depend on just one industry? Is the mix of commercial and residential zoning changing?
Each of these pieces plays a role.