How homeowners can identify hot neighborhoods before they pop

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There are a few characteristics shared by neighborhoods where real estate values have increased fast.

The neighborhood you choose to buy a home in may be themost significant investment decision you will ever make. Buy the right home, inthe right neighborhood, at the right time and your net worth can skyrocket.

How can you think like an investor when choosing a home and get into a“hot stock” early? That neighborhood that’s poised to take off with soaringappreciation, fueled by an underrated school system, a change in commutingbehavior or a sudden reversal in urban flight?

Using 2011–2015 metrics from Phoenix — where Opendoor launched 2 years ago — they analyzed characteristics shared by neighborhoods where real estate values have increased fastest to uncover key trends distinguishing hot neighborhoods from the rest of the pack:

· The hottest ‘hoods tend to be comprised of lessexpensive, older homes near Downtown constructed back in the 1950s, 1960s, and1970s

· Areas with a higher proportion of townhouses, lofts andmixed-use buildings appreciated much faster than areas comprised solely ofhouses

· Proximity to a Whole Foods or Trader Joe’s actuallyequates with slower appreciation (a bit of a shocker, we’ll explain more later)

Source: medium.com
Photo: medium.com

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