Real estate prices are constantly moving up and down.
Almost always, house values appreciate in the long term.
But, in real estate there is always a certain amount of risk.
When your home appreciates you have a larger asset to borrow against, and you'll create a higher profit when you sell.
Property values in BAKERSFIELD go up and down for many different reasons, so how do you know what you're investing in this year won't depreciate the day after you close?
The most important aspect to consider is that you go with a REALTOR® in BAKERSFIELD who is familiar with the factors that drive local prices.
A lot of people guess that the economy is the most critical factor affecting real estate appreciation.
Obviously,
there are some issues on a national level that impact your house's value: unemployment, interest rates, consumer confidence, and more.
But the most influential issues that decide your house's value depend on the local BAKERSFIELD economy and residential market.
Access to services - Proximity to work and schools also have a major effect on almost all home buyers' choices.
So those areas typically appreciate, or carry their value consistently, year to year.
Real estate sales trends - How fast are houses selling? Are sellers needing to discount much or offer concessions Some information can often be obtained from public records, but a good agent with access to the local MLS will often be able to provide a more complete picture.
History of appreciation - In the past 5 to 10 years, have home prices gone up or down? Does location or affordability affect how desirable the area is considered?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a nice combination of jobs in an area, or does it count on just one industry? Is the blend of commercial and residential development changing?
Each of these elements plays a part.