Over time, the value of a property will fluctuate up and down.
Over a long enough period of time, home values normally go up.
But, of course, there is always a certain amount of risk in real estate.
When your property appreciates you have a greater asset to borrow against, and you'll generate a better profit when you sell.
There are numerous reasons why property values in BAKERSFIELD move up and down. So, how do you know what you're buying now will appreciate over time?
The most important thing to consider is that you pick a REALTOR® in BAKERSFIELD who can identify the factors that influence local prices.
A lot of people guess that the economy is the biggest factor affecting real estate appreciation.
interest rates, employment, job growth, government programs and several other national factors have a noticeable impact on your house's worth.
However, your house's value and the elements that play the most significant role in its appreciation are particular to the local BAKERSFIELD economy and housing market.
Location in a community - People typically want homes in the districts with the best and most convenient places we go often or everyday, such as our jobs and schools.
So when it comes to holding their value, these areas usually appreciate better than others.
Real estate sales trends - How long are homes up for sale before closing? Are sellers having to discount much? Some information can be obtained from public records, but a good agent with a login to the local MLS will often provide a more complete picture.
History of appreciation - In the past 5-10 years, have house prices increased or decreased? Does location or affordability affect how desirable the area is believed to be?
Local economy - Is there a nice mix of work in an area, or does it rely on just one industry? Have companies moved into or away from an area? Are local businesses hiring?
All these play a role.