Property prices are forever in flux.
By and large, property values appreciate in the long term.
But, of course, in real estate there are no guarantees.
When your property appreciates you have a greater asset to borrow against, and you'll generate a better profit when you sell.
There are many different reasons why property values in Beverly Hills change. So, how will you know what you're purchasing this year will appreciate over time?
Choosing a real estate agent in Beverly Hills who is familiar with the factors that drive local prices is the most important element to consider.
What is the most influential factor affecting real estate appreciation? Many believe that it's the economy.
mortgage rates, employment, job growth, government programs and many other national factors have a noticeable effect on your home's value.
However, your home's value and the factors that play the most significant role in its appreciation are particular to the local Beverly Hills economy and housing market.
Location in a community - Many home buyers wish to live in areas with the most convenient characteristics for households to do well, like a close proximity to jobs and schools.
So those areas often appreciate, or keep their value consistently, year to year.
Prior home sales - How fast are homes selling? What was the selling price compared to the listing price? A lot of data can often be retrieved from public records, but a good agent with a login to the local MLS will often provide a more complete picture.
Appreciation history - Have house prices risen or declined over the last 5-10 years? Is the community considered desirable because of its location or affordability?
Local economy - Is there a good mixture of job types in an area, or does it count on just one industry? Have businesses moved into or away from an area? Are local businesses hiring?
Each of these factors plays a role.