Over time, the value of a home will go up and down.
Property values appreciate in the long term generally.
But, of course, in real estate there is always a certain amount of risk.
When your property appreciates you have a larger asset to borrow against, and you'll produce a larger profit when you sell.
But how do you know what you're investing in right now will appreciate over time? Property values in California fluctuate for various reasons.
Choosing a real estate agent in California who knows the factors that drive local prices is the most important aspect.
A lot of people think that the economy is the major factor impacting real estate appreciation.
Obviously,
mortgage rates, employment, job growth, government programs and numerous other national factors have a measurable influence on your property's worth.
However, your house's value and the aspects that play the biggest role in its appreciation depend on the local Bakersfield economy and housing market.
Access to services - People typically want homes in the areas with the most convenient amenities, like our schools and work.
So those regions usually appreciate, or keep their value consistently, year to year.
Recent sales - Your agent should provide you with figures on the recent real estate sales in the regions that you're asking about. You'll want to know average time on market, selling versus listing price and more.
The appreciation history - Is the area believed to be desirable because of its location or affordability? Have home prices increased or decreased over the past 5-10 years?
The local economy - Are local companies hiring? Have businesses moved into or away from an area? Is there a good mix of job types in an area, or does it rely on just one industry? Is the mix of commercial and residential development changing?
These items play a part.