Signs Of An Up And Coming Neighborhood

If you're a buyer looking to invest in a neighborhood before it becomes the next trendy or upscale area to live, here are some signs to look for in a neighborhood according to Trulia.com:

1.  On-trend businesses are moving in.  Are the latest popular grocery stores or coffee shops moving in (ie, Wholefoods)? Larger businesses usually do their research on a neighborhood before moving in.  Are small local businesses moving into the neighborhood?  They tend to follow where people with disposable income live or will soon live.  These could be 2 predictors that an area is about to increase in value before it actually does.

2.  Uber-convenient location in a land-impacted metro.  If you live in a densely populated metro area – especially one that is coastal – or an urban setting with intense governmental restrictions on building, demand for homes will continue to grow as the population does, but the supply will remain somewhat limited. In many of these situations, neighborhoods that have been downtrodden but have very convenient proximity to employment centers, public transportation, freeways and bridges tend to be prime for whole-neighborhood remodeling in times of population growth or rapid real estate price rises in already-prime areas.

3.  Negatives to a neighborhood are eliminated.  If a neighborhood has been plagued by certain stigmas for years and those stigmas disappear (crime decreases, accessibility/public transportation increases), then that neighborhood may be primed for development and home value increases.

4.  Architecture within a neighborhood suddenly is on trend.  If a neighborhood is primarily composed of a certain style of home such as Tudor or Victorian, and that style becomes popular again, then that neighborhood may see a resurgence in popularity and value.

5.  At least one major economic development is brewing.  Is big business coming to town?  Is there a new line of transportation being integrated in an area?  Never underestimate these factors bringing more people to the area and home values increasing.

6.  Renovation and development is in the air.  If you see numerous homes being remodeled/renovated and/or commercial developments beginning, this may be a sign of an up and coming area.  It is advised to visit your local City Building Permit office and investigate what developments are in works.  Whether it be commercial or governmental backed, development in an area is usually a good indicator of a soon-to-be upscale area.

7.  Slow but steady decrease in DOM.  If days on the market (DOM) are steadily decreasing for homes in a area, this shows that an area may be ripe for growth.  If you notice this steady decrease of DOM before home values are increasing, you may want to talk to your agent further about it and investigate the area. 

Now, get to it, Mr. Sherlock Homebuyer.


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