Many think that the economy is the major factor affecting real estate appreciation. Obviously, there are many factors on a national level that change your property's value: unemployment, mortgage rates, business growth, and more. However, your house's value and the components that play the biggest role in its appreciation depend on the local Sherman Oaks economy and housing market.

Access to services - Proximity to work and schools also have a great impact on all home buyers' decisions. So those communities generally appreciate, or hold their value, best.

The latest home sales - You should receive data on the recent real estate sales in the neighborhoods that you're interested in from your REALTOR^®. You'll want to analyze data like how long a house stays on the market and asking price as opposed to selling price.

Appreciation history - Have property prices risen or declined over the past 5 to 10 years? Is the neighborhood believed to be desirable because of its location or affordability?

Economic factors - Have companies moved into or away from an area? Are local companies hiring? Is there a good mix of business in an area, or does it count on just one industry? All these play a part.