5 Neighbors That Can Boost Home Prices
WASHINGTON (TheStreet) -- Homeowners ask only two things of a good neighbor in today's real estate market: Shut up and raise my home value.
Homeowners don't need much help spotting a bad neighbor -- derelict properties, landfills and power plants don't often sneak up on a neighborhood -- but lately they're happy to have just about any neighbor they can get. Existing home sales were down for the second straight month, according to the National Association of Realtors, with April sales off 0.8% from March. That's despite housing prices that are roughly $9,000 less than they were last year when the government was doling out its first-time homebuyer credit, mortgage rates that Fannie Mae says are down from 5.1% last April to 4.84% last month and a 9.2-month supply of homes still on the market.
"Given the great affordability conditions, job creation and pent-up demand, home sales should be stronger," says Lawrence Yun, the association's chief economist. "Although existing-home sales are expected to trend up unevenly through next year, unnecessarily tight credit is continuing to restrain the market, along with a steady level of low appraisals that result in contract cancellations."
The only idiotproof way to avoid low appraisals down the road is to find neighbors that appraisers, real estate agents and homebuyers love. With help from the National Association of Realtors, National Association of Home Builders and the Appraisal Institute, TheStreet came up with the five best neighbors a new homeowner could home for:
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