Understanding San Diego property appreciation
Over time, the worth of a home will go up and down. Home values appreciate in the long term for the most part. But, of course, in real estate there are no "sure things".
When your property appreciates you have more resources to borrow against, and you'll create a larger profit when you sell. Property values in San Diego go up and down for a variety of reasons, so how will you be sure what you're investing in today won't depreciate the day after you close? Choosing a REALTOR® in San Diego who understands the factors that drive local prices is the most important part.
The economy is thought to be the most influential factor affecting real estate appreciation. Naturally, interest rates, unemployment, job growth, government programs and several other national determinants have a definite effect on your property's worth. But the most influential things that figure your home's value are particular to the local San Diego economy and residential market.
Access to services - Proximity to schools and work also have a major effect on many home buyers' choices. So when it comes to holding their value, these regions typically appreciate the best.
Recent sales - Your real estate agent should give you facts and figures on the recent real estate sales in the neighborhoods 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 last 5-10 years, have home prices increased or decreased? Does location or affordability affect how desirable the area is believed to be?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a fair mix of jobs in an area, or does it depend on just one industry? Each of these elements plays a role.