Over time, the value of a house will fluctuate up and down.
For the most part, house values appreciate in the long term.
But, of course, in real estate there are no "sure things".
When your home appreciates you have a larger asset to borrow against, and you make a higher profit when you sell.
But how do you know what you're buying this year will appreciate over time? Property values in Sherman Oaks go up and down for a variety of reasons.
The most important aspect to consider is that you pick a REALTOR® in Sherman Oaks who recognizes the factors that influence local prices.
What is the number one factor affecting real estate appreciation? Many think that it's the economy.
Obviously,
there are numerous issues on a national level that adjust your house's value: unemployment, mortgage rates, quarterly earnings reports, and more.
However, your house's value and the things that play the biggest role in its appreciation depend on the local Sherman Oaks economy and housing market.
Access to services - Many of us wish to live in regions with the most conducive components for homes to develop, like a close proximity to schools, jobs, and work.
So those regions usually appreciate, or hold their value consistently, year to year.
Recent sales - Your REALTOR® should give you information on the recent home sales in the regions that you're asking about. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the past 5-10 years, have house prices risen or declined? Does location or affordability affect how desirable the area is believed to be?
Local economy - Is there a fair combination of job types in an area, or does it rely on just one industry? Have companies moved into or away from an area? Are local businesses hiring?
All these play a part.