I know that as a buyer, it can feel hard to be sure that a) you’re choosing a home in a stable or growing location and b) your home will maintain or increase in value. We may be real estate professionals here at The Vincent Group at GreatNest, but we’re homeowners, too!
Many Factors Affect Neighborhood Desirability
There are many things that affect neighborhood popularity, cost, and development. Area employers, good school ratings, convenience of shopping and entertainment, and low crime are just a few. However, countless other factors may affect individual home values and desirability of entire neighborhoods. For example, part of the construction I see regularly on the Greensboro Urban Loop required the demolition of an entire neighborhood of apartments and single-family homes in the area near Guilford Courthouse Park and Country Parks. It was kind of shocking to see this process! Similarly, for years there’s been major change to the roadways and neighborhoods near the Piedmont Triad International Airport. These changes have made some people wary of buying in these sections of town. Another example? When I first moved to Greensboro nearly 20 years ago, no one would have been at all interested in living downtown. But today, downtown is bustling at all hours and there are many new apartments and renovated apartments and townhomes in or near center city.
How to Find Homes in Neighborhoods That Are Likely to Be Good Investments
So, I thought I’d put together a quick list of ways to spot neighborhoods that are on the upswing – even if they look less-than-ideal right now.
New businesses moving into the area – especially popular and upscale chains.
If you spy a Trader Joe’s, Starbucks, or wine and tapas place going in, it’s almost a sure bet this neighborhood is worth investing in.
Historic or architectural style that people love.
Neighborhoods that have concentrations of historic Craftsman style, Victorian, and Colonial-era homes are ripe for investment even if the homes are in ill repair.
Lots of home renovations going on.
This is pretty self-explanatory: If existing residents are maintaining and updating their homes, that’s good news, as is new residents making significant investments in older homes there.
A steady decrease in the time homes spend on the market (you can find much of this data online).
If a year or two ago homes in the neighborhood sat for 60+ days, but today they’re selling in days or weeks now, it’s probably a good sign!
Artists and other creative types like the neighborhood.
It’s actually true that artists, musicians, architects, and others with creative juices flowing can be the early indicators that an area is going to grow in value. These folks often are looking for inexpensive real estate, and they have tons of energy and ideas for improving on what may be less-than-ideal properties.
Significant city or county improvements or other investments in an area.
New parks and schools, dramatic cleanups, museums, and other civic investments can attract new populations and encourage renewal in neighborhoods surrounding them.
Significant economic development.
This could be a major new industry (like FedEx or HondaJet here in Greensboro), a huge infrastructure project (the Urban Loop), or something else that will bring associated investments and people.
Declining crime rates.
This is clearly a chicken or egg situation: less crime means safer neighborhoods, which attract more investment and more residents; at the same time, more families and investment typically yield less crime.
Proximity to other good neighborhoods.
Just because a neighborhood is right next to a thriving one doesn’t necessarily mean it’s ripe for investment. There may be other extenuating factors (proximity to an industrial plant, bounded on the other side by sketchy neighborhood, poorly constructed homes, and so on). However, like does generally attract like. If one desirable neighborhood is popular and hard to find homes for sale in, the neighborhoods around it can offer a similar location and potential growth or improvement.
If we can help you find information about specific neighborhoods or developments, or provide you with any other assistance related to buying or selling residential property in Greensboro, High Point, Winston-Salem, Summerfield, Oak Ridge, Jamestown, and other Piedmont Triad areas, call us at (336) 790-5210, email Steve Vincent, and visit our website at greatnest.com for more information. The Vincent Group at GreatNest is a full-service real estate company serving buyers and sellers that will save you money in buying or selling a home by charging a low set fee instead of a percentage commission. Our experienced real estate professionals are ready to answer your questions or get started looking for the property that suits your taste and budget.