You’ve probably heard the phrase, ‘The 3 most important things in real estate are; Location, Location, Location.’ While is seems silly to repeat the same word there is a reason we real estate agents say this. I’m going to discuss the details in this post.
As you probably know we are in a hot ‘sellers’ market’ right now that started gaining ground in 2015 and kicked into high gear in 2016 and so far has not let up in 2017. But this is not necessarily a universal thing as the market varies by the local market AKA ‘Location’. In many cases areas have become hot markets because of new trends. While others see slower but increasing growth in their respective market. And there are still markets with very little activity.
With what I’ll call ‘trendy markets’ we have seen some of the most explosive growth with buyers who want to move there causing the market prices to skyrocket. Some of the examples would be Fountain Square, Bates Hendricks, and Lockerbie Square in near downtown Indianapolis where young professionals have been snapping up tear down / rebuild homes like crazy in the past few years. There are other areas that have always drawn a special crowd such as Broad Ripple, Irvington, and Carmel. The first group is a newer trend as Millennials want to live close to the action in a revitalized downtown Indy. Broad Ripple and Irvington have always been popular with the younger urban cowboys while Carmel is an area popular with people with money and that want everyone to know it. The thing to consider is what happens to these markets when trends change.
The more traditional markets grow around slower developments in an area such as school districts, access to shopping, and restaurants. These are the areas the market has grown steadily along with local developments. This has been most noticeable in the ‘doughnut counties’ around Indianapolis, especially west and south but lately includes the northwest and northeast areas and everything around Carmel. This is where home builders bet their money and invest in large developments with lots of houses in the price range to match most of the existing housing. For most of the younger buyers with kids we will find it’s the school system that drives their choice on where to buy a home and this is usually the market builders are tapping into.
Finally, there are specifics to consider on the ‘Location’ importance. These are infrastructure items next door or nearby. Close to a school, good. Next to an airport, not so good. Busy roads, train tracks, airport flight paths, all can be something that people avoid like the plague. Walking distance to a park, shopping center, or downtown square, can be attractive for many buyers.
So as you see location plays a big part in in pretty much every real estate transaction. And what’s happening in a location drives the market prices. For example, a large executive home in Carmel sells quickly while the same home elsewhere takes longer to sell because of less demand. In some areas we’ll see the same type of home on 2 sides of a street and one will go for up to 10% more because of the school system.
So when you are looking for a home you should seriously consider the location as a prime factor in your decision. You can always change a home (updates, remodel, etc) but you cannot change the location. If you are not sure about market locations in central Indiana call The Derrick Team with any questions you have at 317-563-1110. We’ll be glad to point you in the right direction to the location that works best for you!