Micro Markets and Overall Local Markets
Although it's true, one part of town may be hotter than another part of town (or surrounding area), a rising (or falling) tide moves all boats. Picking a better location WITHIN a market is something you should do, just like negotiating a better deal - but it's the OVERALL market that dictates if you are going to get great or poor appreciation.
You shouldn’t drill down to zip code level until you have evaluated and chosen a strong market at the metropolitan level; because, zip code “micro-markets” follow what’s happening in the overall city-level markets. Many investors think a hot micro-market in an otherwise flat or declining market is OK, but it’s not. And that’s because the zip code micro market will eventually equalize with the overall local market.
While this will not replace the accuracy and importance of looking primarily at the closest major city, it will provide additional insight into these very small micro-markets.
We recently implemented the new Neighborhood (Census Tract), Zip Code and County level Micro Market Maps (available in the Silver access level)...
... and Micro Market Ranking Tools (available in the Gold access level, State (or highter) market level). You can now target the hottest neighborhoods with a single click!