Over time, the worth of a house will go up and down.
Over a long enough period of time, home values almost always appreciate.
But there is always a certain amount of risk in real estate.
When your property appreciates you have a greater asset to borrow against, and you'll see a higher profit when you sell.
There are various reasons why property values in Valencia go up and down. So, how do you know what you're purchasing today will appreciate over time?
Choosing a REALTOR® in Valencia who knows the factors that influence local prices is the most important factor.
A lot of people assume that the economy is the greatest factor affecting real estate appreciation.
interest rates, unemployment, job growth, government programs and numerous other national factors have a noticeable influence on your house's worth.
But the most significant things that determine your property's value depend on the local Valencia economy and residential market.
Location in a community - Most people want homes in the districts with the most convenient places we go often or everyday, like our schools and work.
So those regions consistently appreciate, or carry their value consistently, year to year.
Recent sales - Your REALTOR® should provide you with data on the recent home sales in the districts that you're interested in. You'll want to know average time on market, selling versus listing price and more.
The appreciation history - Is the neighborhood considered desirable because of its location or affordability? Have house prices increased or decreased over the past 5 to 10 years?
Economic factors - Have businesses moved into or away from an area? Are local businesses hiring? Is there a nice blend of work in an area, or does it rely upon just one industry?
All these play a part.