5 Micromarkets That Provide Great Value in a Seller's Market

It doesn’t matter if you are buying your first home or your tenth, your home is your most valuable possession.  As such, the decision on which home to buy is not only based on the proximity to good schools or a nice neighborhood; it is also a financial decision, one which should not be taken lightly.  As an investment decision, there are several factors you want to take into consideration and here are five micro-markets across the country which provide great value in a seller’s market.

What to Look For?

Determining value combines three factors: 1) Affordability, 2) Growth Potential, and 3) Quality of Life.  By looking at these three factors you can determine which neighborhoods will be the best fit for you today, and tomorrow. 

In terms of affordability, this factor is a combination of what you can afford, and the value you will get for your money.  Not all houses are equal and while $200,000 might buy you a three-bedroom, three bathroom home in some neighborhoods, it might not buy you more than a summer cottage in others.

In addition to affordability, there is also the question of growth potential.  While the housing market has largely recovered from the financial crisis, some neighborhoods have more growth potential than others.  This is an important factor to consider as it will give you an idea of how much your home will be worth in one- to two-years from now.  

Don’t make the mistake of buying a home in a neighborhood which is already at or near its peak.  Instead, look for homes which still have growth potential, or where a new school, road, or other development will add the home’s value.

When talking about quality of life, it is not only a question of how idyllic a certain street will be.  Rather you should take into consideration things like recreational options (i.e. parks and trails), how well the neighborhood recovered from the recession, weather, schools, commuting, crime rates, and energy costs. 

Now let’s look at the micro-markets:

1) Woodinville, Washington

Woodinville is just a short drive from Seattle.  The area adjoins the scenic Sammamish River and is widely considered one of the best areas to buy a house in the entire country.  When looking for Woodinville, WA Homes for Sale you should consider areas like East Wellington, which is primarily made up of single-family homes or even Town Center. 

While the latter is primarily made up of offices, shops, and restaurants, there are some housing options which make this neighborhood a great option for someone who wants a small town feel while being near the big city.

2) Overland Park, Kansas

While you might not have heard of Overland Park, it is the second most populated city in the state of Kansas.  However, this city still has a small town feel and many of the neighborhoods are family friendly.  Located only 13 miles from Kansas City, Overland Park has a thriving economy and great schools.  In fact, it was ranked as one of the best places for tech entrepreneurs to live in 2016.

3) Greeley, Colorado

If you are a beer lover, then this is the city for you.  Greeley is home to five craft breweries and they are all known for holding weekly events.  The city is also quite affordable and is a short drive from Denver as well as some of the best skiing in the country.  Lastly, Greeley is home to the University of Northern Colorado and this gives the city a college town feel.

4) Cedar Rapids, Iowa

Only 20 miles from Iowa City lies Cedar Rapids.  This small town is one of the most family-friendly places to live in the country.  Sure, Iowa is known for its farmlands.  But the state also has a strong industrial presence in addition to the technology companies which are quickly setting up shop in the heartland.

If you are looking for a real estate market with great upside potential, then look no further than Cedar Rapids.  But you better move quickly as even affordable homes are delivering strong returns.

5) Lexington, Kentucky

If you are a basketball fan, then living in Lexington will be a dream come true.  The city is home to perennial NCAA powerhouse the Kentucky Wildcats.  But did you also know that Lexington has one of the best medical centers in the country?

Another thing which sets Lexington apart is that 54% of all residents own their homes.  In addition, the city has one of the best price-to-rent ratios in the country – highlighting another reason why this micro-market provides great value.