Feb 25 2009
5 Ingredients of a Strong Housing Market
By David Farrands
The recent mortgage mess has led to an oversupply of houses on the market. Because of this home prices have been reduced drastically. Just because a house is cheap doesn’t mean it is a bargain. Buying in the right community is what will lead you to a real long term value. Here is a list of the items you should be looking for when deciding where to buy.
A Good Looking Neighborhood
No, I don’t mean that you should try to live next door to Brad Pitt and Angelina Jolie (Although that would be a safe bet). Look for neighborhoods with well maintained homes, nice landscaping and an overall pleasant appearance. Believe it or not the appearance of your neighbor’s homes will have a significant impact on the value or yours and your ability to sell in the future.
Great Schools
All parents know the importance of a good education. Good schools create high demand for homes. The neighborhoods with the best schools have always commanded the highest home prices. There is no reason to believe this trend will disappear in the future.
Low Crime Rates
Nobody wakes up in the morning and says “I wish I lived somewhere that I didn’t feel safe.” High crime will limit the demand for housing in certain areas. Areas with the lowest crime rates tend to have the greatest home pricing appreciation.
Good Employment Opportunities
In troubled times the population migrates to areas where they can find work. By ensuring that your new home is in an area with growing, upscale employment you can be certain that the demand for your home will always be high. Be careful if one employer is primarily responsible for all the employment in your neighborhood. Even the best of companies have hard times, potentially leading to layoffs. Many nice areas have become ghost towns overnight because they relied to heavily on one employer.
While property values don’t always increase you can be sure to put yourself in the best home possible by mixing these 5 ingredients of a strong housing market.
