What causes Mission Viejo home prices to fluctuate?
Over time, the value of a house will go up and down. Over a long enough period of time, house values generally go up. But, of course, in real estate there is always a certain amount of risk.
When your house appreciates you have a larger asset to borrow against, and you'll generate a greater profit when you sell. Property values in Mission Viejo move up and down for numerous reasons, so how can you be sure what you're investing in right now won't depreciate the day after you close? Choosing an agent in Mission Viejo who recognizes the factors that influence local prices is the most important element to consider.
Many guess that the economy is the biggest factor affecting real estate appreciation. It goes without saying that there are a lot of factors on a national level that change your home's value: unemployment, interest rates, inflation, and more. However, your property's value and the elements that play the biggest role in its appreciation are particular to the local Mission Viejo economy and housing market.
Access to services - Being close to schools, work and amenities like shopping, restaurants and entertainment is a priority to many families and will greatly influence home values. So these areas usually appreciate, or keep their value consistently, year to year.
The latest home sales - You should receive figures on the recent real estate sales in the neighborhoods that you're interested in from your agent. You'll want to analyze figures like time on market and listing price versus selling price.
Appreciation history - Have house prices risen or declined over the past 5 to 10 years? Is the community thought of as desirable because of its location or affordability?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a good combination of work in an area, or does it rely on just one industry? Is the blend of commercial and residential development changing? All these play a part.