So, I'm not about to buy anything based on hunches about the future, but I am considering using local trends as a tiebreaker where cash flow is otherwise equal.
Exhibit A:
http://www.campus805.com/news/I've been watching this area for a long time because I thought it had potential. In fact, my failure to complete a speculative purchase there - a dual-zoned house that was later fixed up and folded into a large commercial operation, probably at great profit - was a primary catalyst to the thoughts and ensuing life changes that led me to finding MMM, jacking my SR from a sorry-ass 10-15% to 70+, and buying some rentals that actually made money. Now I'm looking back there, and I still see signs of impending renewal and transformation. And the best news? Shit's still affordable.
I don't have enough long-term data to summarize price trends. However, inventory is low, listings move fast lately, and rents look to be rising. I just missed a $35K sale half a block from this development, which is now listed for $795/mo (well above current comps). It looks high, but it's cheap for the new clientele coming and going. If they start moving there, that's the low side of the new normal.
To me, all signs point to a groundswell of appreciation in both rents and values. But I have no basis for comparison, and I'm curious if anyone else has experience with evaluating and forecasting such localized changes.