Over time, the value of a piece of real estate will fluctuate up and down.
Usually, home values appreciate in the long term.
But, of course, in real estate there is always a certain amount of risk.
When your home appreciates you have more resources to borrow against, and you'll create a higher profit when you sell.
There are different reasons why property values in Santa Barbara shift. So, how will you be sure what you're buying right now will appreciate over time?
Choosing a real estate agent in Santa Barbara who is familiar with the factors that drive local prices is the most important factor.
The economy is believed to be the most crucial factor impacting real estate appreciation.
interest rates, employment, job growth, government programs and a lot of other national factors have a definite impact on your home's value.
However, your house's value and the elements that play the biggest role in its appreciation are specific to the local Santa Barbara economy and housing market.
Access to services - People typically want homes in the areas with the best and most convenient places we go often or everyday, like our schools and jobs.
So these communities usually appreciate, or keep their value consistently, year to year.
Prior home sales - How long are homes up for sale before closing? Are sellers needing to discount much? A lot of data can often be obtained from public records, but a good agent with access to the local MLS will usually be able to provide a more complete picture.
Appreciation history - Have property prices gone up or down over the last 5 to 10 years? Is the community thought of as desirable because of its location or affordability?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a nice mix of jobs in an area, or does it count on just one industry?
All these play a part.