Real estate prices are forever in flux.
House values appreciate in the long term usually.
But, in real estate there is always a certain amount of risk.
When your home appreciates you have a bigger asset to borrow against, and you get a larger profit when you sell.
But how do you know what you're investing in this year will appreciate over time? Property values in South Bay & Palos Verdes fluctuate for a variety of reasons.
It's imperative that you choose an agent in South Bay & Palos Verdes who understands the factors that affect local prices.
The economy is believed to be the most crucial factor affecting real estate appreciation.
It goes without saying that
mortgage rates, employment, job growth, government programs and a lot of other national factors have a definite impact on your property's worth.
However, your home's value and the factors that play the biggest role in its appreciation depend on the local South Bay & Palos Verdes economy and housing market.
Location in a community - Proximity to work and schools also have a huge impact on almost all home buyers' decisions.
So when it comes to holding their value, these communities often appreciate much more reliably than areas lacking key features.
Real estate sales trends - How long are homes up for sale before closing? Are sellers needing to discount much? A lot of data can often be obtained from public records, but a good agent with a login to the local MLS will usually provide a more complete picture.
Appreciation history - Have house prices gone up or down over the past 5-10 years? Is the neighborhood considered desirable because of its location or affordability?
Local economy - Is there a nice blend of business in an area, or does it count on just one industry? Have companies moved into or away from an area? Are local companies hiring?
All these play a part.