What drives property values up or down?

Over time, the value of a home will fluctuate up and down. In most cases, home values appreciate in the long term. But, of course, in real estate has always been cyclical and there is always a certain amount of risk.

When your home appreciates you have a more valuable asset to borrow against and you’ll generate a greater profit when you sell. But how can you be sure that what you’re purchasing now will appreciate over time? Property values shift for many different reasons. It’s imperative that you work with a REALTOR® who is familiar with the hyper-local factors that influence prices.

Many people believe that the economy is the single most important factor impacting real estate appreciation. After all, there are numerous issues on a national level that change your home’s value: unemployment, mortgage rates, business growth, and more. But the most important factors that determine your home’s value depend on the local East Bay economy, job market, and housing market.

Location in a community – Convenient access to schools, work and amenities like shopping, restaurants and entertainment is a priority to many families and will greatly influence home values. So when it comes to keeping their value, these communities usually appreciate better than others.

The latest home sales – I’ll provide you with statistics on recent real estate sales in the neighborhoods about which you are most interested. You’ll want to learn things like time on market and asking price versus selling price.

History of appreciation – In the last 5 to 10 years, have property prices risen or declined? Does location or affordability affect how desirable the area is thought to be?

The local economy – Are local companies hiring? Have businesses moved into or away from an area? Is there a good mixture of jobs in an area, or does it depend on just one industry? Is the mix of commercial and residential zoning changing? Each of these factors plays a role.


It’s important to be informed about the factors that play into your home’s potential sale price. Click here to get an assessment of your home’s approximate value. And if you have any questions, call me at 510-303-5903 or eMail me.

Looking to Sell?
Are you looking to sell your house? Let us help you. Just fill out as much of the information below that you want and we’ll get right back to you, with no obligation to you. We guarantee your privacy.