Good established districts tend to hold its value. They will drop one day when the total market collapses, but they will remain the LAST area to drop. Less than good districts tend to drop early and rise late. However, here is the detail: when you want to invest for optimal growth, you may want to invest in less than best areas because they tend to yield the highest return during a boom cycle. The rise delta tends to be wider for secondary areas around the best areas. If you identify an “up-and-coming” area a few miles away from the best area, your investment return tends to be higher.

However, if you only buy your primary residence, rather than actively invest in rental houses, then, you should stick to the best region because the volatility would be less, you will feel better.

In my terminology, “less than best” area are also great areas with good schools. They are simply not those top areas that prices have been bidded into sky.

A lot of less than best areas have the potential to change into the best area one day as more people migrate there over the years. Their school will get better and price will go up. In 10-15 years, the fortunate may turn around, the previous best area may become second best, the previous second-best area rise up to the top.

So, when you buy a house, use long term view, no need to blindly follow the present crowds, studying potential demographics changes locally.