Over time, the value of a piece of real estate will fluctuate up and down.
Usually, property values appreciate in the long term.
But, in real estate there is always a certain amount of risk.
When your home appreciates you have a greater asset to borrow against, and you'll make a better profit when you sell.
But how will you be sure what you're investing in presently will appreciate over time? Property values in San Diego move up and down for a variety of reasons.
Choosing a real estate agent in San Diego who understands the factors that affect local prices is the most important aspect to consider.
The economy is assumed to be the most crucial factor impacting real estate appreciation.
Obviously,
mortgage rates, unemployment, job growth, government programs and numerous other national determinants have a measurable effect on your home's value.
But the most significant issues that decide your property's value are specific to the local San Diego economy and housing market.
Access to services - Convenient access to schools, work and amenities like shopping, restaurants and entertainment is important to a lot of buyers and will greatly influence home values.
So when it comes to retaining their value, these areas generally appreciate much more reliably than areas lacking key features.
Recent home sales - You should receive reports on the recent real estate sales in the districts that you're interested in from your agent. You'll need to learn figures like time on market and listing price as opposed to selling price.
History of appreciation - In the last 5 to 10 years, have house prices risen or declined? Does location or affordability affect how desirable the area is believed to be?
Local economy - Is there a good mix of jobs in an area, or does it rely upon just one industry? Have businesses moved into or away from an area? Are local businesses hiring?
All these play a role.