When it comes to buying a new home, there is no shortage of factors to consider. For first time buyers, the process can quickly become overwhelming with a seemingly unending amount of options to consider and choices to weigh. For as many variables as there are to juggle there are just as many if not more guides to help the aspiring owner through the process. Yet many of them are less than helpful because they outline a course of action, but fail to provide an explanation of how to get there.
Housing markets are a perfect example. Any future owner knows that a strong housing market is a good thing. But what does that look like? And how do you find it? We have the answers and more. This is how you can identify a strong housing market, and why you want your next home to be in one.
The Strength of Strong
Money moves around. Local economies rise and fall. Neighborhoods change. A rough part of town can become the next trendy, in-demand enclave. A upscale, posh neighborhood can decline into urban plight and despair. The economics of it all are complex and are often tied into national, overarching social issues as much as they might be into the international global economy at large. All in all, it’s a pretty easy topic to dismiss as beyond the scope of understanding safe for the select group of real estate agents who dedicate their life to this sort of thing.
It’s important to understand that a strong housing market is about resilience and not about buy or sale price. While other markets oscillate, often times dramatically, a strong market remains relatively stable. That’s why it’s always better to purchase a home in a strong market because you can be relatively certain your significant financial investment won’t depreciate in value over the years. While buying a home on the cheap is great, it’s even better to know that your market is strong and stable and not a gamble. The good news is that a strong market is relatively easy to identify because they involve long term features.
Excellent School System
This is one of the biggest giveaways for a strong housing market. Families want to live in good school districts, and they work hard to live in neighborhoods that provide them. One of the quickest and easiest ways to find a great housing market is to simply check the public school rankings in your area. It’s such a major factor that many rent to own companies provide property selection specifically based on the local school system. Studies show that strong school districts also effect the rate at which homes grow in value.
People want to feel safe where they live and work. As a result, it’s no surprise that areas with less crime usually means higher property values and better stability during downturns. It’s also something that’s easy to check with readily available figures and full statistical breakdowns. Make sure to rely on the data itself when you make your decision because it’s not at all uncommon for a neighborhood to improve dramatically, but you might not know it if you rely on reputation alone.
Access to services
Neighborhoods with strong housing markets tend to have close and convenient proximity to services like grocery stores, pharmacies, laundromats, and other features that people rely on. Grocery stores in particular are a good beacon for a strong housing market because their owners like to locate them in safe areas where business will blossom. Another feature to pay attention to is whether or not there are well maintained and established parks nearby.
The world of real estate is a complex and intricate one, but being able to diagnose the local housing market isn’t black magic. All it takes is a little research. If you master the details, not only can you ensure your next house will be a good financial investment, but you can you’ll be able to accurately predict the direction a neighborhood is headed before it even gets there giving you that much more of a competitive edge when the time comes to purchase your new home.