Where is the best place to buy a home?
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Choosing the best place to buy a home can be difficult as it requires us to consider a wide range of current and future factors. We can never get away from the fact that your home is often your most valuable asset, so it is prudent for us to look at any purchase through a financial lens. However, we must also consider the location based on its geographical and human environment, as well as the lifestyle it offers.
Here you’ll find a range of things to consider when thinking about the best place to buy a home.
Firstly…
The best place to buy a home is the place that is right for YOU. We all have different needs and our best outcome is finding the ideal situation for you and your future.
Financial factors
The local housing market
Most real estate analyses look at recently-sold properties to price a home. But sale price, square footage, lot size, number of bedrooms and bathrooms, and proximity to amenities are all just parts of the picture. When it comes to calculating a home’s value, location can be more important than even the size and condition of the house. Looking back at this historically and building a picture to help you make a good bet on an area is a further challenge.
Digging into the questions below will give you a much broader sense of an area’s value both current and future.
Is there an over or under-supply of homes compared to demand?
An under-supply in homes is a signal of demand and this raises prices. An over-supply of homes (or one that is likely in future) could leave sellers with few interested buyers for their property and thus likely to sell for less.
Which does the historical price tend show us?
Historical prices are affected by inflation, environmental changes, financial conditions, and a host of other things. Just look at what COVID has shown us! But looking back over a long period will give you a good base to judge the value of an area. If the prices have grown rapidly and levelled off, this may signal there isn’t much growth left. An area that has just started to grow may be worth looking into more. Know that places change and develop, this brings in new demand and increased prices once more.
Are there cheaper neighbourhoods nearby?
We like to picture real estate markets as fluid representations of the movement of people. When one area becomes too expensive, closer, more affordable areas become more popular. When these neighbouring areas share many of the same attributes but don’t possess the ‘trendy’ price range, this may be a sign for you to consider looking there.
What types of properties are growing in the area?
Houses come in all shapes and sizes and carry their own set of historical trends - even within the same neighbourhood. If you’re looking for high-rise living opportunities in a trendy, youthful area, you’re likely to be looking at premium prices. But these same neighbourhoods may also be seeing a drop in detached house prices.
Is the area above or below the average price of property in the province?
Areas with struggling economies are frequently buyer’s markets. Cities with growing industries and lots of jobs tend to be seller’s markets, leading to that can result in bidding wars and multiple offers on individual properties.
If you’re looking for more support, your REALTOR® has access to the best of the local market statistics and is best place to interpret them based on your needs.
The potential for upside growth
If an area has been steadily trending upwards and has a strong future ahead of it, you might be right in thinking this is a good bet. You’re also on the right track if you’re thinking of what the area could be in future with the right investment. Local authorities publish their budgets and long-term investment plans and this is a great place to get started.
Pay attention to:
Planned increases in housing
The quality of local schools and if they are increasing
Employment opportunities, how is the local employment market?
Investment in shopping, entertainment, and recreational centers
These factors can influence why some neighborhoods command steep prices now and in future, and others that are a few miles away don’t. In addition, a location’s proximity to highways, utility lines, and public transit can all impact a home’s overall value.
Remember, history doesn’t dictate the future. In real estate we know this all too well, but we have been making correct assumptions for 45 years so you can trust our judgement.
Environmental factors
The potential change over time to the area
We love looking into what the future holds for various areas. It is a great exercise for investment purposes, but also allows you to see if this is an area that will grow with you.
Do existing roads and businesses adequately support current residents?
Are there big plans to reshape tourism and develop large attractions in the area?
Will the pristine wilderness continue to be protected for local residents to enjoy?
Has there been an increase in taste-makers and creators?
Are large businesses, such as Costco and Walmart, looking to expand their reach nearby?
Environmental risks
Flood plains and high fire risk areas have long been a consideration for real estate developers and buyers. Unfortunately, risks like these are likely to increase in frequency and scale. Looking at the risk profile of the area in which you choose to live is a prudent thing to do, at the very least you’ll learn how to protect your asset through appropriate insurance.
Take a look into the following to give yourself the assurance you need to make an informed, future proofed decision:
Environmental disaster risk - type and frequency
Air and water quality
Climate
Natural resources
Water availability
Lifestyle factors
For the city dwellers, the mountain lovers, and those who wish to own a farm, the right property will enable us to live the type of life we want to lead. We can all benefit from blue ocean thinking where we dream of our perfect set up, most commonly we see the property that we live in as part of this.
To find the perfect location based on your lifestyle, first consider the following;
What do I like best about my current home?
What do I like least about my current home?
What would I like in my next home?
Next, have a think about the kind of variables that will ultimately frame your ideal lifestyle;
Neighbourhood attributes - schools, greenspace, and density
Landscape and geology - dry, mountainous, or urban
Nearby amenities - transportation, universities and healthcare
Cultural and recreational activities - leisure pursuits, music venues, and restaurants
Support for your work-life - commutable and having work-from-home space
If you are considering purchasing a second home the weight you will place on location and amenities will outweigh the need for your home to be practical and enable your work-life. Many second homeowners opt for something entirely new or in a beloved place of theirs to continue building memories during time away.
Whatever your motivations for your property search, we believe that the right home will help you achieve the life you want to lead - and it isn’t as difficult as it might seem.
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