As cities grow, developers will build further from the center of the city because that’s where the land is most affordable. As people move further out, the value of the more centrally located neighborhoods tends to rise, and homebuyers often find themselves priced out of the market where they would really like to live. They end up feeling like they have no choice but to live on the fringe of civilization.
Many smart homebuyers are resisting the trend to move to the outskirts. You can find a great place to live that is also a smart financial decision. This home, built in 1948, is located in central Mesa, AZ. Five years ago it sold for $63,000. Now, with a little sweat equity, it’s worth about $150,000. That’s a growth rate of about 20% annually! Many smart home buyers are taking advantage of the new life that the light rail and other community improvements are bringing to older neighborhoods. I say if you’re in the market for a “new” home, it couldn’t hurt to look at fixers!