6 signs of a strong housing market

With lower home prices and attractive mortgage rates, 2009 will present plenty of bargains for real-estate shoppers. But as the historic bust continues, Americans everywhere are learning a painful lesson about homebuying: Property values don’t always increase. People looking to purchase a home this year should make sure they’re buying into a community that can support long-term value. With the help of housing experts, U.S. News & World Report compiled a list of the top six ingredients of strong housing markets:

1. A well-groomed neighborhood: Well-maintained homes and landscaping have a positive effect on property values in that community, says Joshua Dorkin, founder and CEO ofBiggerPockets.com, a real-estate networking and information site. By caring for the appearance of their homes, residents help to create a more aesthetically pleasing environment that future real-estate hunters will want to buy into. So when you’re eyeing a home, make sure to take a drive through the entire neighborhood. Take note of how the neighbors care for their homes, lawns and gardens. “Run-down houses and abandoned cars are big red flags,” Dorkin says.

2. Good schools: Given the importance of education, communities located within strong school districts tend to support higher home prices. Parents, after all, will want to move into the communities with the best educational opportunities. “The school district is important in terms of (read more here)

 

Family biking in nice neighborhood