Real estate values are forever in flux.
By and large, house values appreciate in the long term.
But, in real estate there is always a certain amount of risk.
When your house appreciates you have more resources to borrow against, and you'll realize a greater profit when you sell.
There are different reasons why property values in Santa Barbara vary. So, how do you know what you're purchasing today will appreciate over time?
The most important factor to consider is that you pick an agent in Santa Barbara who knows the factors that influence local prices.
Many assume that the economy is the most important factor impacting real estate appreciation.
mortgage rates, unemployment, business growth, government programs and numerous other national determinants have a measurable influence on your home's value.
But the most influential issues that determine your house's value are particular to the local Santa Barbara economy and residential market.
Location in a community - Proximity to work and schools also have a major effect on most home buyers' choices.
So those regions often appreciate, or keep their value, best.
Recent sales - Your real estate agent should give you figures on the recent home sales in the districts 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 to 10 years, have property prices increased or decreased? Does location or affordability affect how desirable the community is believed to be?
Local economy - Is there a nice combination of jobs in an area, or does it depend on just one industry? Have businesses moved into or away from an area? Are local businesses hiring?
These items play a part.