How Do Real Estate Trends Affect Your Purchase of a Home?

When you’re buying a home, you’re also buying a piece of real estate which is going to appreciate or depreciate over time. As a homeowner, you may be more interested in whether you’re going to like living in that home and whether your family will like it too. You may want to know whether there are shops and amenities in the neighborhood and whether it’s close to your place of work.

But if you’re thinking about your home as an investment as well as a place to live, you should try to consider the home objectively. As a piece of real estate, you need to consider real estate trends to figure out whether that home is a good investment. Here are some trends to think about:


Have the prices in that neighborhood generally been going up or going down during the last five or ten years? You should try to get hold of this information to figure out what the price of the house will be in another five or ten years, should you want to sell it at that time. Obviously, no one has a crystal ball and no one can predict the future, but having an understanding of the past does help understand what could happen. What you’ll likely notice, too, is that prices can go up, stabilize for a while and maybe even go down in price, and then rise again, which means that, generally, the longer you hold real estate, the better your chances for turning a profit.


Another thing to consider is whether the Metro Denver neighborhood your home is in seems to be getting better or worse. It’s possible that prices in a certain neighborhood have been stable for some time. But if the neighborhood is being developed, with new shops and businesses coming up, then that means that prices in that neighborhood will go up in the future, making it a good investment.


If a certain neighborhood is being redeveloped, that usually means that prices in that neighborhood are also going to go up. Redevelopment means that smaller houses are being replaced with larger, gated communities with more amenities and a greater influx of people wanting to live in that area. Know what the plans are for the area surrounding your home. We know the Metro Denver area well and keep up with many redevelopment plans. A great website to follow Denver development plans is DenverInfill. Also read local newspapers and blogs.

Historic Denver Homes For Sale
Historic Denver Homes

Historical Revival

Certain neighborhoods might not seem to be very well taken care of. But if they are deemed historically important, then a revival might take place, with old buildings or houses being fitted up with modern amenities and prices generally going up in that area. This is another thing to look out for when you buy.

Contact us to learn more about how real estate trends could affect your purchase.