Real estate values are continually changing.
Almost always, home values appreciate in the long term.
But, in real estate there is always a certain amount of risk.
When your home appreciates you have more equity to borrow against, and you'll generate a bigger profit when you sell.
Property values in Santa Barbara go up and down for numerous reasons, so how will you know what you're investing in today won't depreciate the day after you close?
The most important factor is that you select a REALTOR® in Santa Barbara who is familiar with the factors that influence local prices.
The economy is believed to be the top factor impacting real estate appreciation.
mortgage rates, employment, job growth, government programs and a handful of other national determinants have a measurable impact on your house's worth.
However, your house's value and the factors that play the most significant role in its appreciation depend on the local Santa Barbara economy and housing market.
Access to services - Many of us wish to live in districts with the most conducive traits for homes to do well, like a close proximity to schools and work.
So those regions generally appreciate, or carry their value consistently, year to year.
Trends in home sales - How quickly are houses selling? Are sellers having to discount much? Some information can often be obtained from public records, but a good agent with a login to the local MLS will usually provide a more complete picture.
The appreciation history - Is the neighborhood believed to be desirable because of its location or affordability? Have property prices risen or declined over the past 5-10 years?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a good blend of jobs in an area, or does it rely upon just one industry? Is the blend of commercial and residential zoning changing?
Each of these pieces plays a role.