What drives property values in San Diego to move up and down?
Real estate prices are continually changing. Over a long enough period of time, property values normally appreciate. But, of course, in real estate there are no "sure things".
When your property appreciates you have more resources to borrow against, and you make a bigger profit when you sell. There are various reasons why property values in San Diego waver. So, how can you be sure what you're purchasing today will appreciate over time? Choosing a real estate agent in San Diego who understands the factors that drive local prices is the most important thing.
The economy is believed to be the most crucial factor impacting real estate appreciation. It goes without saying that interest rates, employment, business growth, government programs and numerous other national factors have a measurable effect on your property's worth. However, your house's value and the aspects that play the most significant 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 easiest access to amenities, like our jobs and schools. So when it comes to keeping their value, these regions typically appreciate better than others.
Recent sales - Your agent should give you reports on the recent real estate sales in the areas 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 neighborhood believed to be desirable because of its location or affordability? Have property prices gone up or down over the past 5-10 years?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a fair combination of job types in an area, or does it rely upon just one industry? Is the blend of commercial and residential development changing? These items play a part.