What drives property values in La Jolla to move up and down?
Property values are forever in flux. Over a long enough period of time, house values , in most cases, go up. But, in real estate there are no “sure things”.
When your house appreciates you have a bigger asset to borrow against, and you’ll make a higher profit when you sell. There are different reasons why property values in La Jolla go up and down. So, how can you be sure what you’re buying this year will appreciate over time? It’s imperative that you choose a REALTOR® in La Jolla who is familiar with the factors that drive local prices.
A lot of people assume that the economy is the greatest factor impacting real estate appreciation. Obviously, mortgage rates, unemployment, business growth, government programs and quite a few other national factors have a measurable effect on your property’s worth. But the most significant factors that decide your home’s value depend on the local La Jolla economy and housing market.
Location in a community – Proximity to work and schools also have a great impact on many home buyers’ choices. So those areas generally appreciate, or carry their value consistently, year to year.
Recent sales – Your REALTOR® should provide you with stats on the recent real estate sales in the regions that you’re interested in. You’ll want to know average time on market, selling versus listing price and more.
History of appreciation – In the past 5 to 10 years, have house prices gone up or down? Does location or affordability affect how desirable the area is believed to be?
The local economy – Are local companies hiring? Have businesses moved into or away from an area? Is there a nice blend of job types in an area, or does it rely on just one industry? Is the mix of commercial and residential zoning changing? All these play a part.