Like most things in real estate, neighborhoods are constantly changing in value. In some cases they can improve rapidly and decline gradually, but more often than not they change slowly, over time.
Ideally, you want to buy property in neighborhoods as they’re appreciating. You certainly don’t want to pay top dollar in a neighborhood which is in decline. So how can you tell which direction things are heading?
Home values over time are one way to tell, but they tend to lag behind the trends. Values reflect what the current situation is… they don’t predict the future.
While you definitely want to observe a neighborhood first-hand at different times of day and night, here are some other indicators of neighborhood value trends: