Over time, the worth of a piece of real estate will go up and down.
Property values appreciate in the long term in most cases.
But, of course, 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 see a larger profit when you sell.
Property values in San Diego shift for various reasons, so how do you know what you're buying today won't depreciate the day after you close?
Choosing an agent in San Diego who knows the factors that drive local prices is the most important element.
Many are convinced that the economy is the greatest factor affecting real estate appreciation.
Naturally,
there are quite a few issues on a national level that impact your home's value: unemployment, interest rates, quarterly earnings reports, and more.
However, your house's value and the features that play the biggest role in its appreciation depend on the local San Diego economy and housing market.
Location in a community - Convenient access to schools, employment and amenities like shopping, restaurants and entertainment is a priority to many buyers and will greatly influence home values.
So these regions usually appreciate, or carry their value consistently, year to year.
Real estate sales trends - What's the time on market? What was the final sales amount compared to the listing price? Some information can be obtained from public records, but a good agent with a login to the local MLS will often provide a more complete picture.
Appreciation history - Have home prices increased or decreased over the last 5 to 10 years? Is the area considered desirable because of its location or affordability?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a good blend of business in an area, or does it count on just one industry?
All these play a part.