- Published on Wednesday, 02 April 2014 18:08
- Written by Super User
I hope you are having a terrific day!
This time of year we work with a lot of out-of-town buyers. They are 100% committed to moving to Wilmington (or buying a second home), but they are unsure of the neighborhoods or area they want to be in.
How do you predict the value of a neighborhood? While no one can say for sure how home values in a neighborhood will rise or decline over time, there are big-picture economic factors that you can look for to help get handle on where they may be going.
1. Major regional employers. If a community depends upon one or two large companies for a high percentage of local employment, you can bet that as the company fares, so will the neighborhoods. While “company towns” are hardly the norm these days, don’t overlook the possibility.
2. Number of properties currently for sale. Sometimes there’s nothing wrong with a neighborhood just because the inventory (i.e. number of homes on the market) is high. Other times, something may be amiss. If you’re seeing street-after-street of “FOR SALE” signs, ask questions.
3. History of Sales. I recommend to my clients that we evaluate 5 years of sales data on any given neighborhood. While data from the past 6 months is likely what a buyer and seller will use for “comps”, sometimes looking at sales data over a longer period can establish neighborhood trends.
4. Major construction. Is that a new school they’re building, or is it a supermax prison? Did they clear that land for a new shopping center, or is it a new loop for the interstate? Certain types of construction can improve home values while others can hurt. Getting in touch with the local planning commission as well as the local newspaper’s business section (or website) can help illuminate what’s behind those bulldozers and cement mixers. As experienced local agents, we often know the answers to these questions too!
5. Rental density. People who own the homes they live in tend to take better care of them. Also, it’s preferable to have long-term neighbors versus high-turnover tenants. Absentee landlords or seasonally rented properties in established communities can also be a drag on a neighborhood. Get a feel for the rental density and the direction it’s heading. Rental density matters.
6. Environmental conditions. One industrial accident that poisons a water supply is enough to annihilate home values. Don’t rule out environmental liabilities or benefits.
As an area in general, Wilmington gets terrific reviews! Over the past few years Wilmington has been recognized in numerous national publications such as Money Magazine, Forbes. The area has also seen international investment dollars, as well as the expansions and relocations of major employers to the area.
So where in the Wilmington area do you want to live? Pleasure Island, Mayfaire, downtown, Ogden?
Nobody’s crystal ball is perfect, but it’s important to evaluate major macroeconomic factors when deciding. Even if you’re only planning on staying in a location for 5 - 7 years, do yourself a favor and try to position yourself to make, not lose money, on your home or investment with these tips in mind.
Expect Results: Your Real Estate Market Report is provided by Justin Donaton of Coastwalk Real Estate. Any data provided, unless otherwise noted, is courtesy of the Wilmington Association of REALTORS MLS and/or the National Association of REALTORS.
Justin does not just "list" properties, he sells them! To get your home SOLD for the highest possible price, call Justin at 910-352-0998. Justin has SOLD the most real estate on Pleasure Island since 2007. He has the highest dollar volume of sales, and has had the most number of closings. His business is built on hard work and high-impact marketing. Coastwalk Real Estate has the #1 Sales office on Pleasure Island too. Please visit: www.CoastwalkRealEstate.com for more info. The Weekly Market Report is a Paid Advertisement Compliments of Coastwalk Real Estate.