Property values are continually changing.
Normally, property values appreciate in the long term.
But, in real estate there are no guarantees.
When your property appreciates you have more resources to borrow against, and you make a higher profit when you sell.
Property values in Orange rise and fall for a variety of reasons, so how do you know what you're purchasing today won't depreciate the day after you close?
The most important thing is that you pick a REALTOR® in Orange who knows the factors that influence local prices.
The economy is believed to be the top factor impacting real estate appreciation.
Obviously,
there are numerous issues on a national level that affect your home's value: unemployment, mortgage rates, inflation, and more.
However, your home's value and the components that play the most significant role in its appreciation are particular to the local Orange economy and housing market.
Access to services - Most people want homes in the regions with the most useful features, like our schools and jobs.
So these communities often appreciate, or retain their value consistently, year to year.
Recent sales - Your real estate agent should give you figures on the recent real estate sales in the regions that you're interested in. 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 house prices increased or decreased? Does location or affordability affect how desirable the neighborhood is thought to be?
The local economy - Are local companies hiring? Have businesses moved into or away from an area? Is there a good mix of work in an area, or does it count on just one industry? Is the mix of commercial and residential development changing?
These items play a role.