Almost every real estate market has certain areas that are referred to as transitional areas.
A transitional area can also be referred to as an area of gentrification or an area of revitalization. It is in these areas that the real estate market is experiencing changes. The changes that are being experienced are changes for the better.
Transitional areas often times start off as a depressed area. When I say depressed, I mean that it is an area where properties are not maintained well by the owners, people generally don’t want to move in to that particular area, often there is visible crime, and there isn’t a general sense of pride of ownership demonstrated by the homeowners.
Transitional areas can be certain streets in a city or town, certain subdivisions or even entire neighbourhoods.
An area becomes a transitional area when it starts to experience a change for the better. With this change, there are a number of things that start to happen to the area.
You begin to see people with above average incomes move into this area. These people will purchase a home, spend some money to fix up the home, and they will begin to demonstrate pride of ownership towards their home. This pride of ownership is demonstrated by the care and attention they have put forth in order to make the exterior of their home look nice. During holiday seasons such as Halloween and Christmas, these owners will jb hublot king power around 15mm men 701 nx 0170 rx deployment around 18cm spend time, effort, and money dressing the exterior of their home up with decorations. In the spring and summer, these same owners will tend to their gardens, hang potted plants, and make sure that their yards are generally tidy and attractive looking.
When an area is in transition, there are a few signs that you can look for. First, you will start to see an assortment of well looked after houses, in which these new owners are moving. At the same time, just next door, you may see a run down house, where little care and attention has been put towards the home. For every 2 run down houses you see, you should be able to see one well maintained, attractive looking house. These numbers I give are just an approximation. As long as you are seeing an assortment of nice looking houses, mixed in with run down houses, this is a sign that you are in a transitional area.
Another indicator of a transitional area can be found by observing the type of cars that you see in the neighbourhood. In transitional areas that are experiencing revitalization, you will start to notice higher end cars, such as BMWs, Mercedes, and Audi. You start to notice these cars because people with higher than average incomes are moving into these areas, and generally speaking higher income earners might own higher end cars.
In these transitional areas, you often may notice construction taking place. An indicator of construction would be found when you see dump trucks, construction workers, and any sort of construction equipment. Construction will be taking place in these areas, as sometimes new houses or condo buildings are being built in the area. In addition, you will notice construction taking place on some of the run down houses. This would be a situation where someone has moved in from outside of the area, has an above average income, and is spending the time and money to make their house look nice.
You also might see notices for re-development from the town or city placed on certain properties, or you might see a number of properties fenced off and a re-development sign placed on the fence. When you see this, this simply means that a real estate developer has purchased this particular fenced off section, and the use of that land is going to change. More often than not in a case like this, new homes or condo buildings are being built on this land.
Whenever I am driving through an area that I believe to be a transitional area, there is always one indicator that I look for. If I notice a number of custom built homes, I know that I am in a transitional area. These homes would look very grand, large, and attractive and often out of place, when you compare them to the rest of the homes on the street. When you see several of these homes scattered throughout he streets or neighbourhood, you know that the area is in transition.
A transitional are that I purchased a property in was the Juction Area of Toronto Canada. Below is a map of the Junction.
This was an area that was riddled with crime, drugs, and prostitution. There are still parts of the area that quite rough. However, over the past several years, this area has experienced a lot of change. Many young families and higher income earners are moving into this area. People now want to live here. The pride of ownership is evident, and the sense of community here is strengthening with each passing day. Many new businesses and restaurants have moved into this area, and are continuing to move in each day. I had watched this area experience change over the past few years. As I keep myself educated with respect to the real estate markets, I knew this was an area where there would be tremendous long term potential. I read about the City of Toronto injecting money into this area in order to better it, and I read real estate reports that said that this area of Toronto would outpace other areas of Toronto in terms of property appreciation over the next few years. Finally, I had actually read an article in the New York Times that highlighted the Junction and the revitalization that is was undergoing.
Almost every real estate market has these transitional areas. If you know what signs to look for, you should have no trouble in identifying these areas.
