Over time, the value of a piece of real estate will go up and down.
For the most part, property values appreciate in the long term.
But, of course, there is always a certain amount of risk in real estate.
When your house appreciates you have a bigger asset to borrow against, and you'll realize a larger profit when you sell.
There are numerous reasons why property values in Mission Viejo vary. So, how can you be sure what you're buying presently will appreciate over time?
The most important aspect to consider is that you choose an agent in Mission Viejo who understands the factors that influence local prices.
A lot of people believe that the economy is the most important factor affecting real estate appreciation.
It goes without saying that
mortgage rates, employment, job growth, government programs and a handful of other national determinants have a definite impact on your house's value.
However, your property's value and the elements that play the most significant role in its appreciation are particular to the local Mission Viejo economy and housing market.
Location in a community - People typically want homes in the areas with the most convenient places we go often or everyday, such as our schools and jobs.
So when it comes to retaining their value, these areas typically appreciate much more reliably than areas lacking key features.
Recent sales - Your real estate agent should give you statistics on the recent real estate 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 home prices increased or decreased over the past 5 to 10 years? Is the community considered desirable because of its location or affordability?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a nice mix of work in an area, or does it count on just one industry? Is the blend of commercial and residential development changing?
All these play a part.