Over time, the value of a house will fluctuate up and down.
Over a long enough period of time, house values normally go up.
But, in real estate there is always a certain amount of risk.
When your home appreciates you have a larger asset to borrow against, and you'll produce a larger profit when you sell.
There are different reasons why property values in Arcadia go up and down. So, how will you know what you're investing in presently will appreciate over time?
The most important thing to consider is that you go with a REALTOR® in Arcadia who is familiar with the factors that influence local prices.
A lot of people believe that the economy is the major factor impacting real estate appreciation.
interest rates, unemployment, business growth, government programs and several other national determinants have a definite impact on your home's value.
But the most influential factors that determine your property's value are specific to the local Arcadia economy and housing market.
Access to services - Convenient access to schools, employment and amenities like shopping, restaurants and entertainment is a big deal to a lot of buyers and will greatly influence home values.
So these areas often appreciate, or hold their value consistently, year to year.
The latest home sales - You should receive stats on the recent real estate sales in the districts that you're asking about from your REALTOR®. You'll need to know data like how long a house stays on the market and asking price as opposed to selling price.
History of appreciation - In the last 5-10 years, have home prices gone up or down? Does location or affordability affect how desirable the community is believed to be?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a fair blend of work in an area, or does it rely upon just one industry? Is the mix of commercial and residential zoning changing?
All these play a part.