Fluctuating home prices in Bakersfield, California: What causes this?
Real estate prices are continually changing. House values appreciate in the long term normally. But there are no guarantees in real estate.
When your property appreciates you have more equity to borrow against, and you'll create a larger profit when you sell. Property values in Bakersfield move up and down for various reasons, so how will you be sure what you're investing in this year won't depreciate the day after you close? It's critical that you go with an agent in Bakersfield who is familiar with the factors that drive local prices.
What is the most crucial factor impacting real estate appreciation? Many believe that it's the economy. It goes without saying that there are a handful of issues on a national level that adjust your house's value: unemployment, interest rates, inflation, and more. However, your property's value and the components that play the most significant role in its appreciation are specific to the local Bakersfield economy and housing market.
Access to services - Being close to schools, jobs and amenities like shopping, restaurants and entertainment is a priority to a lot of us and will greatly influence home values. So when it comes to holding their value, these communities consistently appreciate much more reliably than areas lacking key features.
Recent home sales - What's the time on market? Are sellers having to discount much or offer concessions Some information can often be retrieved from public records, but a good agent with access to the local MLS will usually be able to provide a more complete picture.
History of appreciation - In the last 5 to 10 years, have property prices increased or decreased? Does location or affordability affect how desirable the area is believed to be?
Local economy - Is there a good 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 companies hiring? Each of these factors plays a part.