Over time, the value of a piece of real estate will fluctuate up and down.
Generally, property values appreciate in the long term.
But, of course, there are no "sure things" in real estate.
When your house appreciates you have more equity to borrow against, and you'll make a bigger profit when you sell.
But how do you know what you're investing in right now will appreciate over time? Property values in BAKERSFIELD shift for a variety of reasons.
It's imperative that you go with a REALTOR® in BAKERSFIELD who knows the factors that affect local prices.
What is the most crucial factor affecting real estate appreciation? Many assume that it's the economy.
It goes without saying that
interest rates, unemployment, job growth, government programs and a handful of other national determinants have a measurable influence on your home's value.
However, your property's value and the factors that play the biggest role in its appreciation are particular to the local BAKERSFIELD economy and housing market.
Access to services - Being close to schools, work and amenities like shopping, restaurants and entertainment is important to many us and will greatly influence home values.
So those regions consistently appreciate, or retain their value consistently, year to year.
Recent sales - Your real estate agent should give you data 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.
Appreciation history - Have property prices risen or declined over the last 5-10 years? Is the community believed to be desirable because of its location or affordability?
Economic factors - Have businesses moved into or away from an area? Are local businesses hiring? Is there a fair mix of business in an area, or does it rely upon just one industry?
All these play a part.