Over time, the value of a house will fluctuate up and down.
Home values appreciate in the long term almost always.
But, of course, there is always a certain amount of risk in real estate.
When your house appreciates you have more equity to borrow against, and you'll generate a larger profit when you sell.
Property values in San Diego change for many different reasons, so how will you be sure what you're buying right now won't depreciate the day after you close?
Choosing a REALTOR® in San Diego who knows the factors that drive local prices is the most important factor to consider.
Many assume that the economy is the most influential factor affecting real estate appreciation.
It goes without saying that
interest rates, employment, job growth, government programs and quite a few other national factors have a definite influence on your home's worth.
However, your property's value and the components that play the biggest role in its appreciation are specific to the local San Diego economy and housing market.
Access to services - Most people want homes in the regions with the best and most convenient amenities, such as our work and schools.
So those areas consistently appreciate, or keep their value, best.
Recent sales - Your agent should provide you with figures on the recent home sales in the districts that you're asking about. 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 believed to be?
Local economy - Is there a nice mix of business in an area, or does it rely upon just one industry? Have companies moved into or away from an area? Are local companies hiring?
All these play a role.