Over time, the value of a home will fluctuate up and down.
House values appreciate in the long term generally.
But, of course, there is always a certain amount of risk in real estate.
When your house appreciates you have more resources to borrow against, and you'll produce a better profit when you sell.
There are various reasons why property values in Santa Barbara change. So, how can you be sure what you're buying presently will appreciate over time?
The most important factor is that you choose a REALTOR® in Santa Barbara who recognizes the factors that affect local prices.
Many believe that the economy is the top factor impacting real estate appreciation.
there are quite a few factors on a national level that impact your property's value: unemployment, mortgage rates, business growth, and more.
However, your property's value and the components that play the most significant role in its appreciation depend on the local Santa Barbara economy and housing market.
Location in a community - Many of us prefer to live in districts with the most convenient factors for households to grow, like a close proximity to schools, jobs, and work.
So when it comes to retaining their value, these areas often appreciate much more reliably than areas lacking key features.
Recent home sales - What's the time on market? What was the selling price compared to the listing price? 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 home prices risen or declined? Does location or affordability affect how desirable the community is considered?
Economic factors - Have companies moved into or away from an area? Are local companies hiring? Is there a nice blend of job types in an area, or does it count on just one industry?
These items play a part.