Neighborhoods are always on the rise and on the
decline. A variety of factors can influence property values and neighborhood
quality.
Do you know how to read the signs?
Find out in this short article.
Like most things in real estate, neighborhoods are constantly
changing in value. In some cases they can improve rapidly and decline
gradually, but more often than not they change slowly, over time.
Ideally, you want to buy property in neighborhoods as they’re
appreciating. You certainly don’t want to pay top dollar in a neighborhood
which is in decline. So how can you tell which direction things are heading?
Home values over time are one way to tell, but they tend to lag
behind the trends. Values reflect what the current situation is… they don’t
predict the future.
While you definitely want to observe a neighborhood first-hand at
different times of day and night, here are some other indicators of
neighborhood value trends:
Positive indicators:
- Homes are
receiving multiple offers
- Schools are
well-rated and in demand
- Young families and
creative types are moving to the neighborhood
- Older couples
choose to remain in the neighborhood as they age
- Commercial
properties are quickly redeveloped and leased
Negative indicators:
- The number of
homes converted into rentals has increased
- Homes remain on
the market longer
- Companies are
relocating away or shutting down offices
- Commercial spaces
are vacant for long stretches
Sometimes you can spot the potential in a bad neighborhood, but it
often means you have to put up with the bad neighborhood for a long time before
reaping the rewards. It’s a good idea to evaluate neighborhoods with these
indicators in mind. Neighborhoods you have traditionally regarded as “good” or
“bad” may have (or be under) significant change.
I am more than happy to help you with neighborhood research! Contact me today to begin your hunt: valerie@valeriemcconville.com
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