What causes California home prices to fluctuate?
Home prices are continually changing. Over a long enough period of time, house values , for the most part, go up. But there is always a certain amount of risk in real estate, of course.
When your property appreciates you have a greater asset to borrow against, and you'll create a greater profit when you sell. But how will you be sure what you're investing in now will appreciate over time? Property values in California change for different reasons. The most important element to consider is that you choose a real estate agent in California who can identify the factors that influence local prices.
A lot of people think that the economy is the top factor impacting real estate appreciation. Clearly, there are several factors on a national level that alter your home's value: unemployment, interest rates, consumer confidence, and more. But the most influential things that determine your house's value are specific to the local economy and residential market.
Access to services - Being close to schools, employment and amenities like shopping, restaurants and entertainment is important to a lot of families and will greatly influence home values. So these regions typically appreciate, or hold their value, best.
Recent home sales - You should receive statistics on the recent real estate sales in the districts that you're asking about from your agent. You'll need to learn figures like time on market and listing price versus selling price.
Appreciation history - Have property prices increased or decreased over the past 5 to 10 years? Is the neighborhood believed to be desirable because of its location or affordability?
Local economy - Is there a good mixture of jobs in an area, or does it rely upon just one industry? Have businesses moved into or away from an area? Are local companies hiring? These items play a part.