Understanding San Diego property appreciation
Over time, the worth of a property will fluctuate up and down. House values appreciate in the long term for the most part. But, of course, there is always a certain amount of risk in real estate.
When your house appreciates you have a greater asset to borrow against, and you'll see a larger profit when you sell. Property values in San Diego change for different reasons, so how will you be sure what you're investing in right now won't depreciate the day after you close? It's imperative that you go with an agent in San Diego who is familiar with the factors that influence local prices.
Many guess that the economy is the top factor impacting real estate appreciation. After all, there are several factors on a national level that influence your home's value: unemployment, interest rates, consumer confidence, and more. However, your home's value and the things that play the most significant role in its appreciation are particular to the local San Diego economy and housing market.
Location in a community - Many home buyers decide to live in districts with the most conducive elements for homes to shine, such as a close proximity to schools, jobs, and work. So when it comes to keeping their value, these regions typically appreciate much more reliably than areas lacking key features.
Prior home sales - How quickly are houses selling? What was the selling price versus the asking price? A lot of data can often be retrieved from public records, but a good agent with access to the local MLS will often provide a more complete picture.
History of appreciation - In the last 5 to 10 years, have home prices increased or decreased? Does location or affordability affect how desirable the neighborhood is thought to be?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a nice mixture of business in an area, or does it rely upon just one industry? Is the mix of commercial and residential zoning changing? These items play a role.