Real estate prices are constantly moving up and down.
House values appreciate in the long term for the most part.
But there are no "sure things" in real estate.
When your home appreciates you have more resources to borrow against, and you'll produce a better profit when you sell.
But how will you be sure what you're purchasing right now will appreciate over time? Property values in Sherman Oaks go up and down for a variety of reasons.
The most important factor to consider is that you pick an agent in Sherman Oaks who can identify the factors that influence local prices.
Many assume that the economy is the biggest factor affecting real estate appreciation.
It goes without saying that
there are a handful of factors on a national level that affect your home's value: unemployment, interest rates, quarterly earnings reports, and more.
However, your house's value and the factors that play the biggest role in its appreciation are specific to the local Sherman Oaks economy and housing market.
Access to services - Being close to schools, employment and amenities like shopping, restaurants and entertainment is a priority to a lot of families and will greatly influence home values.
So those areas often appreciate, or retain their value consistently, year to year.
Recent sales - Your REALTOR® should provide you with stats on the recent home sales in the neighborhoods that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have property prices increased or decreased over the past 5 to 10 years? Is the community thought of as desirable because of its location or affordability?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a nice mixture of work in an area, or does it depend on just one industry? Is the blend of commercial and residential zoning changing?
Each of these factors plays a part.