Over time, the worth of a piece of real estate will go up and down.
For the most part, home values appreciate in the long term.
But there are no guarantees in real estate.
When your house appreciates you have more resources to borrow against, and you'll generate a greater profit when you sell.
Property values in BAKERSFIELD rise and fall for various 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 select a real estate agent in BAKERSFIELD who recognizes the factors that drive local prices.
Many guess that the economy is the biggest factor affecting real estate appreciation.
After all,
interest rates, unemployment, job growth, government programs and many other national determinants have a noticeable effect on your home's worth.
However, your home's value and the elements that play the biggest role in its appreciation depend on the local BAKERSFIELD economy and housing market.
Location in a community - Convenient access to schools, employment and amenities like shopping, restaurants and entertainment is a priority to a lot of families and will greatly influence home values.
So when it comes to keeping their value, these areas often appreciate much more reliably than areas lacking key features.
Recent sales - Your real estate agent should provide you with information 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.
The appreciation history - Is the neighborhood thought of as desirable because of its location or affordability? Have property prices risen or declined over the last 5 to 10 years?
The local economy - Are local companies hiring? Have businesses moved into or away from an area? Is there a nice combination of job types in an area, or does it count on just one industry? Is the mix of commercial and residential development changing?
These items play a role.