Whether you are looking into buying a home, selling a home or investing in real estate, it is important to be aware of the factors that can affect the direction of local home values.
Most of us are aware of how a declining job market, rocketing foreclosures or a string of hurricanes can affect home values. However, there are other factors that you have probably completely overlooked that could signal a coming boost to nearby home prices for those buying a home in the area early.
Whether you are buying a home in New Haven, CT, San Diego, CA or somewhere in between, here are 4 factors you might not have thought about:
1. Shopping
The recent turmoil in the economy and real estate markets has caused the retail market to shift dramatically on a local level too. Some shopping centers that were hot a couple of years ago are now deserted and new luxury shopping malls have taken their place. This can also change where homes are most in demand and how much future buyers will be willing to pay for them.
2. Flights
New airports and airline routes can also have a big impact on local real estate. For example, in San Diego, a new nonstop flight service from Tokyo has been created boosting visitor numbers, local consumer spending and the appeal for foreign real estate investors, having a powerful potential uplift for local properties.
3. Internet Speed
You might not have thought something as simple as internet speed could affect the demand for homes and their prices, but it is. Hotspots that boast the fastest internet connections aren’t just attracting geeks to move there but hoards of big corporations too; completely changing the dynamics and rocketing demand for homes.
4. Government Incentives
Local governments are also pulling out all the stops to attract more businesses and residents today. If it isn’t Texas’ Governor Rick Perry promising lower taxes it’s Tennessee towns offering grants for second mortgages and relocation assistance for professionals.
