In today’s market, home inventory is limited and competition among buyers can be fierce. In fact, it may be hard to find the perfect house within that top-rated, popular community you are looking for. Location is king, but there are neighborhoods and entire communities out there in various stages of transformation that will probably be tomorrow’s “hot” places to buy.
Why not get a jump on the up-and-coming neighborhoods and pay less than you might a year or two from now? Not only will you open up your buying options, but perhaps get more house for your buying dollar by considering these transitional communities.
How do you identify what neighborhoods are up-and-coming? Here are a few things to look for.
- The area offers easy commuting options and is accessible: The next big “IT” neighborhood will probably be in reasonable proximity to public transportation and major highways. Look at communities that are the next exit off the highway (essentially on the outskirts) of the trendy more expensive communities.
- Look at Days on the Market (DOM): You can do a little research on your own or ask your REALTOR to learn how long homes in any given neighborhood have been sitting on the market. If the trend is the number is going downward, means that homes are selling faster--which is an excellent sign the neighborhood is rising in popularity. Anything at 120 days or longer is not a great indication of an up-and-coming area.
- There is an art community, museums, and several fine-dining or trendy restaurants: These added extras tend to move into (and succeed in) neighborhoods that are stable and popular, because they offer reliable returning customers that support their business.
- Retail stores are setting-up shop: If the downtown has begun to be transformed with new retail stores, it is a great sign that residents are shopping, strolling and grabbing a cappuccino afterward.
- There is plenty of new home construction: If there are numerous new homes being built, someone has done some research and knows it is smart to build there. This is where people will be moving to.
It pays to be a savvy buyer right now, target ways to get the most for your dollar, and recognize a great opportunity. Finding your new home in an up-and-coming neighborhood offers you the chance to get the home of your dreams and be a part of the next “hot market”--while the prices are still affordable.