Over time, the value of a house will go up and down.
Home values appreciate in the long term generally.
But, in real estate there is always a certain amount of risk.
When your property appreciates you have a bigger asset to borrow against, and you get a larger profit when you sell.
There are many different reasons why property values in Sherman Oaks fluctuate. So, how do you know what you're purchasing right now will appreciate over time?
It's imperative that you select a REALTOR® in Sherman Oaks who recognizes the factors that drive local prices.
The economy is thought to be the major factor impacting real estate appreciation.
interest rates, employment, job growth, government programs and a handful of other national determinants have a definite impact on your home's worth.
But the most significant things that decide your home's value are particular to the local Sherman Oaks economy and housing market.
Access to services - Most people want homes in the districts with the most accommodating amenities, like our schools, jobs, and shopping.
So these communities typically appreciate, or keep their value, best.
Recent sales - Your REALTOR® should provide you with information on the recent real estate sales in the districts that you're interested in. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have house prices increased or decreased over the past 5 to 10 years? Is the community thought to be desirable because of its location or affordability?
Local economy - Is there a fair combination of business in an area, or does it count on just one industry? Have businesses moved into or away from an area? Are local businesses hiring?
Each of these factors plays a part.