Understanding Bakersfield property appreciation
Real estate prices are constantly moving up and down. Usually, property values appreciate in the long term. But, of course, there are no guarantees in real estate.
When your property appreciates you have more resources to borrow against, and you'll create a larger profit when you sell. Property values in Bakersfield vary for many different reasons, so how do you know what you're purchasing presently won't depreciate the day after you close? Choosing a real estate agent in Bakersfield who recognizes the factors that affect local prices is the most important aspect to consider.
What is the greatest factor affecting real estate appreciation? Many are convinced that it's the economy. It goes without saying that mortgage rates, unemployment, business growth, government programs and a handful of other national determinants have a noticeable impact on your home's worth. However, your house's value and the components that play the biggest role in its appreciation are specific to the local Bakersfield economy and housing market.
Location in a community - Convenient access to schools, jobs and amenities like shopping, restaurants and entertainment is important to many buyers and will greatly influence home values. So those areas generally appreciate, or retain their value, best.
Real estate sales trends - How fast are houses selling? What was the selling price compared to the asking price? A lot of data can often be retrieved from public records, but a good agent with access to the local MLS will often provide a more complete picture.
History of appreciation - In the past 5 to 10 years, have home prices increased or decreased? Does location or affordability affect how desirable the neighborhood is thought to be?
Local economy - Is there a good mixture of business in an area, or does it rely upon just one industry? Have companies moved into or away from an area? Are local companies hiring? These items play a role.