Over time, the worth of a property will go up and down.
Over a long enough period of time, property values normally go up.
But, in real estate there is always a certain amount of risk.
When your property appreciates you have a larger asset to borrow against, and you make a better profit when you sell.
There are many different reasons why property values in Mission Viejo fluctuate. So, how do you know what you're investing in now will appreciate over time?
It's important that you go with a real estate agent in Mission Viejo who understands the factors that drive local prices.
A lot of people assume that the economy is the greatest factor impacting real estate appreciation.
After all,
mortgage rates, unemployment, business growth, government programs and many other national determinants have a definite effect on your home's worth.
However, your property's value and the features that play the biggest role in its appreciation depend on the local Mission Viejo economy and housing market.
Location in a community - Proximity to schools and jobs also have a great effect on almost all home buyers' decisions.
So these regions often appreciate, or hold their value, best.
Real estate sales trends - How quickly are houses selling? Are sellers having to discount much? A lot of data 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.
History of appreciation - In the last 5-10 years, have house prices gone up or down? Does location or affordability affect how desirable the neighborhood is believed to be?
Local economy - Is there a good combination of jobs in an area, or does it rely upon just one industry? Have businesses moved into or away from an area? Are local companies hiring?
All these play a role.