Over time, the value of a piece of real estate will fluctuate up and down.
House values appreciate in the long term normally.
But, in real estate there are no guarantees.
When your house appreciates you have a bigger asset to borrow against, and you'll generate a greater profit when you sell.
Property values in San Diego move up and down for different reasons, so how do you know what you're buying this year won't depreciate the day after you close?
It's imperative that you pick an agent in San Diego who can identify the factors that influence local prices.
Many guess that the economy is the most critical factor affecting real estate appreciation.
After all,
interest rates, unemployment, job growth, government programs and some other national determinants have a noticeable influence on your property's worth.
However, your house's value and the elements that play the most significant role in its appreciation are particular to the local San Diego economy and housing market.
Location in a community - Proximity to schools, jobs, and amenities also have a great impact on most home buyers' choices.
So these regions usually appreciate, or carry their value consistently, year to year.
Recent sales - Your real estate agent should provide you with figures on the recent home sales in the neighborhoods that you're asking about. You'll want to know average time on market, selling versus listing price and more.
The appreciation history - Is the community thought to be desirable because of its location or affordability? Have property prices gone up or down over the last 5-10 years?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a good mix of business in an area, or does it rely upon just one industry?
These items play a part.