When you’re looking to buy a house, it’s important to think about the future of the area. Is it growing? Are the homes there likely to see an above average increase in value? Is it a good investment? Will you enjoy living there?
There are a few things you can look at if you want to make an educated guess about whether your neighbourhood is on the rise:
Sales price increase
The most obvious sign that the area is growing in value is if the average sales price is going up.
Number of sales increase
Likewise, a consistent uptick in the number of sales and quick turn around rates indicate that the area is highly desirable and growing.
New retail openings
If new businesses are moving to the area, that’s a sign that the neighbourhood is developing. Whether it’s small businesses or franchises, retail and commercial growth is a positive.
When homeowners make improvements to their properties, it can drive up the value of the neighbourhood for everyone – especially when it’s upgrades like new roofs or decks. Many types of renovations require building permits, so the information can often be found through municipal records.
New builds and development
New construction, whether that’s for multi-family homes or commercial properties, is an indication that the area is on the rise. Developers do a lot of research before committing to a new location, so take it as a good sign.
Schools drive up the value of a property. If a new school is being added, that shows significant investment by the city and will help attract buyers in the future.
New playgrounds or sport fields
Any kind of new amenities in a community raises the property values. Playgrounds and sports fields in particular are highly desired. A Google search may bring up news announcements about these kinds of developments.
Cultural events and activities
An increase in cultural events and activities, such as festivals and concerts, can be a sign of a neighbourhood that is becoming more vibrant and dynamic. The city or neighbourhood officials often post event listings.
Increased public transportation or updated roadways
Investment in public transportation skyrockets the appeal of a neighbourhood. That could be a new train line or station, or simply an increase in the frequency of bus routes.
A diverse mix of residents, including young professionals and families, can be a sign of a neighbourhood that is attracting a wide range of people.
Low crime rate
Neighbourhoods with low crime rates are more attractive to potential buyers, which can drive up property values.
Please feel free to reach out to us and we’d be happy to share some additional information to help with your home purchase decisions.