In this blog post, we will be reviewing the list of failed banks in the United States. It's never good news when we hear about a bank failure, and unfortunately, there have been quite a few in the United States over the years. From Washington Mutual and IndyMac in 2008 to Guaranty Bank and First NBC Bank in 2017, these failures can have a big impact on customers, employees, and the economy as a whole.

While there are often warning signs leading up to a bank failure, it can still be a shock and a disappointment to those affected. It's important to remember, though, that the government has systems in place to help protect customers' deposits and ensure that the banking industry remains stable overall.

Banks are an important part of our financial system, but unfortunately, they can fail from time to time. There are a few reasons why this might happen. One common cause is undercapitalization, which means that the bank doesn't have enough money to cover its obligations. Another factor is loan quality – if a bank makes too many bad loans, it can end up losing a lot of money.

Additionally, losses on investment securities can also contribute to a bank's failure. When a bank fails, it can have a ripple effect on the economy and on the people who have accounts with that bank. That's why it's important for regulators to keep a close eye on banks and step in when necessary to prevent failures from happening.

ALSO READ: Which Banks Are in Danger of Failing or Collapse? 

According to recent reports, some banks failed in March 2023 due to their exposure to the cryptocurrency market. Specifically, several large banks in the United States had gained market exposure to cryptocurrency and cryptocurrency-related firms prior to and during the COVID-19 pandemic. Among these banks were Silvergate Bank, Silicon Valley Bank, and Signature Bank, which collapsed in March 2023  Additionally, undercapitalization, loan quality, and losses on investment securities are common reasons why banks may fail.

To prevent bank failures, regulators closely monitor banks and enforce regulations to ensure that they are adequately capitalized and managing risk appropriately. In addition, deposit insurance programs such as the Federal Deposit Insurance Corporation (FDIC) in the United States help protect customers' deposits in the event of a bank failure.

Here's a list from the Federal Deposit Insurance Corporation (FDIC) website, which maintains a list of bank failures in the United States. The list includes information on the year of failure, the state where the bank was located, and the acquiring institution, if applicable.

List of Recent Failed Banks [2021 – 2023]

List of Recent Failed Banks [2015 – 2020]

List of Failed Banks [2013 – 2014]

List of Failed Banks [2011 – 2012]

Sources:

• https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/

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Recently, a report posted on the Social Science Research Network found that 186 banks in the United States are at risk of failure due to rising interest rates and a high proportion of uninsured deposits. The report titled ‘Monetary Tightening and US Bank Fragility in 2023: Mark-to-Market Losses and Uninsured Depositor Runs?' estimated the market value loss of individual banks' assets during the Federal Reserve's rate-increasing campaign. The study also examined the proportion of banks' funding that comes from uninsured depositors with accounts worth over $250,000. This blog post aims to explore the implications of the report and why it matters to buyers and sellers.

The Risk of 186 Bank Failures

According to the report, if half of the uninsured depositors quickly withdrew their funds from these 186 banks, even insured depositors may face impairments as the banks would not have enough assets to make all depositors whole. This could potentially force the Federal Deposit Insurance Corporation (FDIC) to step in.

The failure of Silicon Valley Bank serves as an example of the risks posed by rising interest rates and uninsured deposits. The bank's assets lost value due to the rate increases, and worried customers withdrew their uninsured deposits. As a result, the bank failed to meet its obligations to its depositors and was forced to close.

The report noted that “Even if only half of the uninsured depositors decide to withdraw, almost 190 banks are at potential risk of impairment to insured depositors, with potentially $300 billion of insured deposits at risk. If uninsured deposit withdrawals cause even small fire sales, substantially more banks are at risk.” The economists who conducted the study warned that these 186 banks are at risk of a similar fate without government intervention or recapitalization.

Silicon Valley Bank Collapse

Silicon Valley Bank, once a prominent player in the banking industry, collapsed after struggling to cope with rising yields that eroded the value of its assets. The bank was shut down by Californian regulators, and the FDIC was appointed as the receiver. This marks the largest bank failure since the financial crisis of 2008 when Washington Mutual went bust.

Silicon Valley Bank attempted to recover from its losses by selling a portfolio of treasuries and mortgage-backed securities to Goldman Sachs at a loss of $1.8 billion. However, it failed to raise $2.25 billion in common equity and preferred convertible stock to plug the hole. The bank's clients became increasingly worried and withdrew their deposits, causing $42 billion in outflows in just one day.

In an attempt to salvage its businesses, Silicon Valley Bank announced earlier this week that it was exploring strategic alternatives for its holding company, SVB Capital, and SVB Securities. The company said that SVB Securities and SVB Capital's funds and general partner entities were not included in the Chapter 11 filing. The company added that it planned to proceed with the process to evaluate alternatives for its businesses, as well as its other assets and investments.

Potential Impact of Such Bank Failures

The findings of the report highlight the importance of careful risk management and diversification of funding sources for banks to ensure their stability in the face of market fluctuations. Buyers and sellers of banking assets should carefully evaluate the risks associated with uninsured deposits and the potential impact of rising interest rates on bank assets.

The failure of Silicon Valley Bank serves as a cautionary tale for the banking industry, and it is essential to take proactive steps to mitigate the risks posed by these factors. The government may also need to step in to prevent a similar fate for the 186 banks identified in the report.

The potential impact of nearly 200 banks being at risk for the same fate as Silicon Valley Bank could be significant for the banking sector and the broader economy. If a large number of these banks were to fail, it could lead to a domino effect, causing other banks to fail as well. This could lead to a credit crunch, making it difficult for businesses and consumers to access credit and slowing economic growth.

In addition, a bank run on one of these vulnerable institutions could cause a ripple effect, causing depositors to withdraw funds from other banks as well. This could lead to a broader panic and a loss of confidence in the banking system as a whole, potentially leading to a recession or even a financial crisis. The federal government's promise to back all depositors in these banks is a step in the right direction to help prevent a wider panic.

However, this may not be enough to prevent a bank run if customers believe that the bank is insolvent. It is important for regulators and policymakers to monitor the situation closely and take action to prevent further bank failures. This could include recapitalizing vulnerable banks or providing government guarantees to support their operations. Overall, the situation highlights the importance of a stable banking system and the need for effective risk management practices in the financial sector.

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Selling a house is a big decision, and timing is crucial. The best time to sell a house varies depending on various factors. According to a 2022 report by ATTOM Data Solutions, the peak months for selling a house are May, June, and July. These months offer the highest seller premium, netting thousands of dollars more compared to the slower months of October and December. The seller premium is the amount above the home's market value.

Their data showed that May is the best month to sell, with homes selling for a median sale price of $208,273 and a median AVM of $185,000, resulting in a seller premium of 12.6 percent. June and July are the second and third best months to sell, respectively, with seller premiums of 10.7 percent and 10 percent. April and March follow closely behind, with seller premiums of 9.2 percent and 8.9 percent, respectively.

On the other hand, October and December are the two worst months to sell, with seller premiums of 5.2 percent and 6.3 percent, respectively. January and November follow closely behind with seller premiums of 6.2 percent and 6.1 percent, respectively. It's worth noting that the seller premium for each month is still positive, meaning that sellers can still earn more than the market value of their homes during these months.

However, the premiums are significantly lower during the worst months to sell, so it's important for sellers to keep this in mind when deciding when to list their homes. Additionally, the table reveals that the summer months of May, June, July, and August see the highest number of purchase transactions, with nearly 17 million transactions taking place during this period. This underscores the fact that the summer is the best time to sell a home, as there is a higher demand for housing during this time.

It's also interesting to note that the seller premium for each month is relatively consistent across different regions, although there are some variations. For example, in the South and West, where temperatures are moderate, there's less discrepancy between the peak and slow seasons. In contrast, the Midwest and Northeast experience more disparity between summer and winter.

Spring and Summer Are the Best Seasons to Sell a House

Typically, spring and summer are the best seasons to sell a house. During this time, the weather is good, especially for those living in colder climates. Families also want to buy their next home before school starts. Daylight savings time may also play a part in stimulating buying activity. The longer days provide more exposure for listings, leading to more offers.

Fall and winter are the worst seasons to sell a house. The decline in seller premiums begins in September, and by winter, homebuying goes on the back burner. During this time, buyers are occupied with the start of the busy holiday season, and the weather is not suitable for house hunting.

If you're planning to sell your house, it is essential to consider your buyer's situation. Homebuyers on a deadline, such as those who want to acquire a house before the school year begins, are more active in the spring and summer. If you want to sell your home during this period, you should list it before school starts.

To sell your home successfully, you must be in top financial shape. You should check your credit and debt-to-income ratio to ensure you're in a strong position to get a mortgage pre-approval. This will ensure that your efforts are not delayed. It is also crucial to shop around for a loan before you start looking for a house. This will give you a good idea of what you can qualify for.

In conclusion, the best time to sell a house is during the late spring and early summer months of May, June, and July. During this period, the weather is suitable, and buyers are more active. However, you must consider your region, your buyer's situation, and your financial position before deciding on the best time to sell your home.

When is the Best Time to Sell a House in 2023?

If you're planning to sell your home in 2023, you may be wondering when the best time to list it is. Fortunately, Realtor.com® has crunched the numbers and identified the week of April 16-22 as the best week to list your home for sale.

During this week, home prices are expected to be $8,400 higher than in a typical week, and a whopping $48,000 above early 2023 prices. Real estate listings are also expected to receive 16.4% more views than in a typical week. Additionally, homes are predicted to move off the market 18% quicker than an average week, making it an ideal time for sellers who want a quick sale at a higher price.

The Realtor.com economics team arrived at this conclusion by examining market behavior from 2018 through 2022. They factored in competition from other sellers, how long a home spent on the market, views per property, list prices, and the likelihood of price reductions.

Despite the current real estate market is lukewarm at best, buyers are still desperate for fresh listings. New listings have fallen for 35 consecutive weeks, dropping by 26% for the week ending March 4. The overall inventory is still 50% below pre-pandemic norms as well.

Sellers willing to counter this pent-up demand will likely be rewarded, as savvy buyers know not to hesitate if a good home hits the market. However, if every seller knows the best week to list a home, a hesitant homeowner might worry that there will be a glut of homes on the market, further complicating competition.

Fortunately, the market is about to enter prime time for homebuyers with families, who typically want to move well before the start of the new school year. Therefore, entering the market during the best week gives sellers a great opportunity to catch the attention of buyers before listing activity is in full swing.

Despite the recent sluggish market, homes that are turnkey and located in desirable locations continue to sell briskly and garner “substantial attention.” However, it's important for sellers to list their homes at a well-thought-out price and to get hyperlocal in their research. They should become familiar with their local market and work closely with a local agent to ensure that their listing is attractive to buyers. Buyers who are feeling the pressure of affordability are likely to be pickier, so a well-priced, well-maintained home is the ticket to drumming up big demand.

In conclusion, if you want to sell your home in 2023, consider listing it during the week of April 16-22 for a quick sale at a higher price. And remember to do your research and work with a local agent to ensure that your home stands out to buyers.

Sources:

• https://www.attomdata.com/news/market-trends/home-sales-prices/attom-2022-best-days-to-sell-a-home-analysis/
• https://www.realtor.com/news/trends/home-seller-alert-weve-found-the-very-best-week-to-list-your-home-in-2023/

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The housing market has always been a subject of interest for many people, especially buyers, sellers, investors, and professionals. However, the housing market is not always predictable, and one of the reasons for this is housing bubbles. A housing bubble occurs when property prices increase rapidly, followed by a sudden decrease, and it can have significant impacts on the real estate market and the broader economy. It's important to understand what a housing bubble is and how it can affect the housing market.

When housing bubbles burst, they can lead to significant economic consequences, such as the Great Recession of 2008. Many people lost their homes, and the stock market plummeted. Therefore, understanding the root causes of a housing bubble and recognizing the signs of its formation is crucial for individuals and policymakers alike.

What Causes a Housing Bubble?

A housing bubble can occur due to various factors, such as low-interest rates, easy credit availability, and speculation. When interest rates are low, it becomes cheaper to borrow money, which leads to an increase in demand for homes. This demand leads to an increase in property prices, which can create a self-fulfilling cycle of rising prices, as people buy houses purely as an investment.

Speculation is another significant factor that contributes to the formation of a housing bubble. When people expect property prices to increase, they buy properties with the sole intention of selling them in the future for a higher price. This creates an artificial demand for houses, which leads to a rise in prices, even when there is no real demand for housing.

2000s United States Housing Bubble

Easy credit availability is also a major factor in the formation of a housing bubble. In some cases, lenders may be willing to lend to borrowers who do not have a strong credit history or have limited income. This can result in borrowers taking on more debt than they can afford, leading to a rise in demand for housing.

Moreover, in some cases, the government may also play a role in the formation of a housing bubble. For instance, in the United States, the government's policies to encourage homeownership, such as tax incentives and subsidies for mortgages, led to an increase in demand for housing, which contributed to the formation of the housing bubble in the mid-2000s.

Another factor that can contribute to a housing bubble is speculation in the real estate market. Real estate investors who buy properties with the expectation of selling them for a higher price in the future can drive up demand and prices. In some cases, these investors may not even have any intention of using the property as a primary residence or for rental purposes.

In addition to these factors, economic conditions can also contribute to the formation of a housing bubble. For instance, in periods of economic growth and low unemployment, people may have more disposable income, which can lead to an increase in demand for housing. This can lead to a rise in prices, which can create a self-fulfilling cycle, as people continue to buy homes purely as an investment.

Moreover, in some cases, the formation of a housing bubble may be exacerbated by external factors, such as global economic conditions or geopolitical risks. For example, in the mid-2000s, the housing bubble in the United States was fueled by low-interest rates and easy credit availability, but the collapse of the US housing market also had ripple effects on the global economy, leading to a worldwide financial crisis.

Therefore, a housing bubble can occur due to a combination of factors, including low-interest rates, easy credit availability, speculation, government policies, economic conditions, and external factors. Understanding these factors and monitoring them closely can help policymakers and regulators prevent or mitigate the formation of a housing bubble, which can have significant economic consequences.

Signs of a Housing Bubble

There are several signs that indicate a housing bubble, such as rapid price increases, high levels of debt, and a rise in the number of speculative buyers. In the past, housing bubbles have led to significant economic problems, such as the Great Recession of 2008. Some historical examples of housing bubbles include the US housing bubble of the mid-2000s, which led to the Great Recession, and the Japanese housing bubble of the 1980s, which caused a long period of economic stagnation in Japan.

In addition to rapid price increases, high levels of debt, and a rise in speculative buyers, there are other signs that can indicate a housing bubble. One such sign is an increase in the number of new housing developments and construction projects. This can lead to an oversupply of housing, which can eventually lead to a decrease in demand and a drop in prices.

Another sign of a housing bubble is an increase in the number of people buying homes as investments, rather than as primary residences. When investors buy homes solely for the purpose of making a profit, it can create an artificial demand for housing and drive up prices. It's important to keep in mind that not all rapid increases in property prices are indicative of a housing bubble. In some cases, price increases may be driven by genuine demand for housing due to factors such as population growth, job growth, and a lack of available housing.

However, if multiple signs of a housing bubble are present, it's important to be cautious and consider the potential risks. By understanding the signs of a housing bubble and being aware of historical examples, individuals and policymakers can take steps to prevent or mitigate the impact of a housing bubble on the economy and the real estate market.

The Impact of a Housing Bubble

A housing bubble can have a significant impact on the real estate market and the broader economy. When property prices increase rapidly, it becomes difficult for first-time homebuyers to enter the market, leading to a decrease in demand for housing. This can cause a sudden drop in property prices, which can lead to a significant economic downturn.

Moreover, the impact of a housing bubble extends beyond the real estate market. When property prices decrease, homeowners' equity is eroded, which can lead to a decrease in consumer spending. This, in turn, can lead to a reduction in economic growth and a rise in unemployment.

The impact of a housing bubble can be far-reaching and long-lasting. As property prices fall, homeowners may find themselves underwater, meaning they owe more on their mortgage than their home is worth. This can lead to a wave of foreclosures, which can destabilize neighborhoods and local housing markets.

The effects of a housing bubble can also spill over into the broader economy. As consumer spending decreases, businesses may see a decline in sales and revenue, leading to layoffs and higher unemployment rates. Additionally, the financial sector may be hit hard as mortgage defaults increase, leading to a ripple effect throughout the economy.

It's important to note that not all housing price increases are indicative of a bubble. In some cases, prices may simply be reflecting underlying economic fundamentals, such as population growth or a strong job market. However, it's important for policymakers, investors, and consumers to be aware of the signs of a housing bubble and take steps to mitigate the risk of a sudden collapse in prices.

Preventing a Housing Bubble

Policymakers and regulators can take several measures to prevent or mitigate the effects of a housing bubble. One of the most effective ways is to regulate lending standards and credit availability. By limiting the availability of credit, policymakers can prevent people from taking on excessive amounts of debt, which can lead to a housing bubble.

Individuals can also take measures to protect themselves from the impacts of a housing bubble. For example, homeowners can avoid taking on excessive amounts of debt and refrain from speculative buying. Homebuyers should also be cautious when buying a property and avoid buying a house purely as an investment.

Another measure to prevent a housing bubble is to implement effective regulation of the real estate industry. This can include measures such as requiring real estate agents to provide accurate and transparent information about the properties they are selling and ensuring that appraisals are conducted objectively and independently. Policymakers can also monitor and regulate the activities of property developers and investors to prevent speculative behavior that can lead to a housing bubble.

Another important factor to prevent a housing bubble is maintaining a stable and healthy economy. Economic growth, low unemployment, and stable inflation rates are all important factors in preventing a housing bubble. When the economy is healthy, demand for housing is more stable, and prices are less likely to experience sudden fluctuations.

Additionally, policymakers can implement measures to increase the supply of affordable housing, which can help prevent a housing bubble. When there is a shortage of affordable housing, prices can become inflated, leading to a housing bubble. By increasing the supply of affordable housing, policymakers can help ensure that property prices remain stable and prevent the formation of a housing bubble.

It is also important for policymakers to monitor the real estate market closely and identify signs of a potential housing bubble. This can include monitoring housing price growth rates, the number of homes being built, and the levels of debt being taken on by homebuyers. By identifying these signs early, policymakers can take steps to prevent a housing bubble from forming.

Conclusion

In conclusion, a housing bubble occurs when property prices increase rapidly, followed by a sudden decrease, and it can have significant impacts on the real estate market and the broader economy. Understanding the phenomenon is crucial for real estate buyers, sellers, investors, and professionals. By being aware of the factors that contribute to a housing bubble, signs to look out for, and measures to take, individuals and organizations can make informed decisions and minimize their risks.

It is important to note that while housing bubbles can result in significant losses and financial instability, they are not inevitable, and policies can be put in place to prevent or mitigate their occurrence. The key is to maintain a balance between supply and demand, regulate lending practices, monitor market trends, and promote sustainable growth in the real estate sector. With proper planning and management, the housing market can be a stable and profitable investment for all stakeholders involved.

References:

• https://www.investopedia.com/terms/h/housing_bubble.asp
• https://www.thebalancemoney.com/housing-bubble-5186717#
• https://hbr.org/2010/06/how-to-survive-a-bubble

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What Caused the Financial Crisis in 2008?

The financial crisis of 2008 is a significant event that affected the global economy. The crisis was caused by several factors that led to the collapse of the housing market in the United States, which eventually spread to the entire financial system worldwide. It began in 2007 and reached its peak in September 2008 when Lehman Brothers, one of the largest investment banks globally, filed for bankruptcy.

One of the main causes of the crisis was the housing market crash in the United States. Banks and other financial institutions gave out loans to people who did not have the creditworthiness to repay them. These loans were then packaged and sold to investors as mortgage-backed securities. When homeowners began defaulting on their mortgages, the value of these securities decreased, leading to significant losses for investors.

The use of complex financial instruments like credit default swaps and collateralized debt obligations also fueled the crisis. These instruments allowed banks to take on excessive risks without adequate capital reserves to cover potential losses. When the housing market collapsed, these institutions faced insolvency, leading to a widespread credit freeze.

The financial crisis of 2008 had far-reaching consequences for the global economy. It led to a deep recession in many countries, with millions of people losing their jobs and businesses struggling to stay afloat. The crisis exposed the vulnerabilities of the global financial system and highlighted the need for stronger regulatory frameworks to prevent future crises.

The financial crisis of 2008 also had significant social and political consequences. The bailout of banks and financial institutions with taxpayer money led to a public outcry and a loss of trust in the government and financial institutions. This, in turn, fueled the rise of populist movements and contributed to a broader skepticism towards globalization and free trade.

The crisis also highlighted the growing income inequality in many countries, as the wealthy were able to recover more quickly from the crisis while lower-income individuals and communities continued to struggle. The crisis amplified the urgency for policymakers to address income inequality and the need for social safety nets to support those most affected by economic downturns.

Furthermore, the crisis exposed the limitations of relying on market-based solutions for complex social and economic problems. The deregulation of financial markets in the 1990s and 2000s was based on the belief that market forces would regulate themselves, resulting in greater efficiency and economic growth. However, the crisis demonstrated that markets can be subject to irrational behavior, speculation, and bubbles that can lead to systemic risks.

In response to the crisis, many countries implemented significant regulatory reforms, such as the Dodd-Frank Act in the United States and the Basel III framework globally. These reforms aimed to increase transparency, improve risk management practices, and strengthen capital requirements for financial institutions. However, some have argued that these reforms do not go far enough to prevent future financial crises and that more significant structural changes are necessary.

The financial crisis of 2008 was indeed a complex event with far-reaching consequences for the global economy, society, and politics. It was caused by a combination of factors, including the housing market crash, the use of complex financial instruments, and inadequate regulatory frameworks. While significant reforms have been implemented since then, the possibility of another financial crisis remains, highlighting the need for continued vigilance and structural changes to prevent similar events from happening again.

How Did the Financial Crisis of 2008 Affect the Global Economy?

The financial crisis of 2008 had a significant impact on the global economy. It led to a deep recession in many countries, which means that the economy of those countries shrank for a significant period of time. In some cases, it took several years for the economies to recover fully.

The crisis affected many different parts of the global economy. One of the most significant impacts was on the job market. As businesses struggled to stay afloat during the recession, many had to lay off workers or freeze hiring. This led to high levels of unemployment in many countries, which further impacted the economy by reducing consumer spending.

The crisis also had a significant impact on the housing market. The collapse of the housing market in the United States led to a significant decline in property values. This, in turn, led to a wave of foreclosures and evictions, as many homeowners found themselves unable to keep up with their mortgage payments. The impact of the housing market collapse was not limited to the United States, as many countries around the world had invested in mortgage-backed securities and other financial instruments that were affected by the crisis.

The financial crisis also had a significant impact on the banking sector. Many banks and financial institutions had invested heavily in the housing market and other risky investments. When these investments began to fail, many of these institutions faced insolvency. This led to a widespread credit freeze, as banks and other financial institutions were reluctant to lend money to one another or to consumers.

The global nature of the financial crisis meant that it impacted many different countries around the world. Some of the countries that were hit the hardest included the United States, the United Kingdom, Spain, and Ireland. However, many other countries also experienced significant economic disruptions as a result of the crisis.

Governments and central banks around the world responded to the crisis by implementing a range of measures designed to stabilize the economy. These measures included fiscal stimulus packages, interest rate cuts, and bank bailouts. While these measures helped to prevent a complete collapse of the global financial system, they were not enough to prevent the recession from occurring.

The financial crisis of 2008 also had an impact on international trade. The recession that followed the crisis led to a decline in consumer spending, which resulted in a decrease in demand for goods and services. This, in turn, led to a reduction in international trade, as countries were less likely to import goods and services from other countries.

The decline in international trade had a significant impact on many developing countries, which rely heavily on exports to support their economies. As demand for their products declined, many of these countries experienced significant economic disruptions, including high levels of unemployment and reduced government revenues.

The financial crisis also had a significant impact on the global financial system. It exposed weaknesses in the regulatory frameworks that govern the financial sector and highlighted the need for stronger international coordination to prevent future crises. In response to the crisis, many countries have implemented new regulations designed to strengthen their financial systems and prevent a similar crisis from occurring again.

Another impact of the financial crisis was the erosion of public trust in the financial sector. Many people felt that the crisis was caused by the greed and recklessness of the financial industry, which had taken excessive risks and engaged in unethical behavior. This led to calls for greater transparency and accountability in the financial sector, as well as demands for more significant penalties for those who engage in unethical or illegal behavior.

Therefore, the financial crisis of 2008 had a significant impact on the global economy. It led to a deep recession in many countries, high levels of unemployment, and a credit freeze in the banking sector. The crisis also had an impact on international trade and exposed weaknesses in the global financial system. While significant reforms have been implemented since 2008, it is essential to remain vigilant and continue to strengthen regulatory frameworks to prevent a similar crisis from occurring again.

Could a Financial Crisis Happen Again?

Yes, another financial crisis could happen again. Despite the efforts made to prevent a similar crisis, there are still vulnerabilities in the financial system that could lead to another crisis.

One of the main factors that could contribute to another crisis is the high levels of debt in the global economy. Many countries and individuals have taken on significant amounts of debt, which could become unsustainable if interest rates rise or if there is an economic downturn.

Another potential risk is the continued use of complex financial instruments, such as derivatives, which can be difficult to understand and value. These instruments can allow banks and other financial institutions to take on excessive risk, which could lead to significant losses if their bets go wrong.

Furthermore, the interconnectedness of the global financial system means that a crisis in one country or sector can quickly spread to other regions and industries. For example, a crisis in the housing market in the United States led to a global financial crisis in 2008.

In addition, the lack of effective regulation in some parts of the financial system could also contribute to another crisis. Despite efforts to strengthen regulation, there are still gaps in oversight, particularly in the shadow banking sector, which includes hedge funds and other non-bank financial institutions.

However, there have been significant efforts to strengthen the resilience of the financial system since the 2008 crisis. Many countries have implemented stricter regulations on banks and other financial institutions, including requirements for higher capital reserves and more rigorous stress testing.

In addition, there have been efforts to increase transparency and reduce the use of complex financial instruments. For example, new regulations require derivative contracts to be traded on exchanges, which can increase transparency and reduce counterparty risk.

Central banks have also taken steps to prevent another crisis by implementing policies such as low-interest rates and quantitative easing, which can provide liquidity to the financial system and support economic growth.

Despite these efforts, the possibility of another financial crisis cannot be ruled out. It is essential to remain vigilant and continue to strengthen the resilience of the financial system to reduce the risk of another crisis.

How Can We Prevent Future Financial Crises?

Preventing future financial crises is essential to ensure the stability of the global economy. Here are some ways in which we can prevent such crises from happening:

Strengthen regulations: Strengthening regulations is crucial in preventing another financial crisis. Financial institutions must be monitored to prevent them from engaging in risky behavior that could destabilize the economy. Regulators need to ensure that banks have enough capital reserves to cover potential losses and that complex financial instruments are regulated. Regulators must also have the power to enforce penalties and sanctions when banks and other financial institutions do not comply with regulations.

Increase transparency: Transparency is important to ensure that investors have access to accurate information. Governments and financial institutions need to enforce transparency in financial markets, including increasing disclosure requirements for financial institutions and promoting transparency in trading activities. When investors have access to accurate and timely information, they can make informed decisions about investments.

Enhance risk management: Financial institutions need to improve their risk management practices to prevent excessive risk-taking. This includes developing better models for assessing risk and improving the management of counterparty risk. By implementing better risk management practices, financial institutions can ensure that they are not taking on too much risk, which could lead to insolvency.

Encourage responsible lending: Responsible lending practices can help prevent future financial crises. Financial institutions must ensure that borrowers have the means to repay their debts and have adequate creditworthiness. By providing loans only to those who can repay them, financial institutions can reduce the risk of default, which can lead to a chain reaction of losses.

Promote financial education: Financial education can help individuals and businesses make better financial decisions. Governments and financial institutions can work together to provide education and resources to promote financial literacy. Financial education can help people understand the risks associated with financial products and services, which can prevent them from making risky decisions.

International cooperation: International cooperation is essential to prevent future financial crises. The global economy is interconnected, and financial shocks in one part of the world can quickly spread to other regions. Governments, regulatory bodies, and financial institutions need to work together to develop coordinated responses to potential crises. Cooperation can include sharing information, coordinating policy responses, and providing financial support to prevent the spread of financial shocks.

In conclusion, preventing future financial crises requires a comprehensive approach that includes stronger regulations, increased transparency, better risk management, responsible lending, financial education, and international cooperation. By taking these steps, we can prevent another financial crisis and ensure that the global economy remains stable and resilient in the face of potential shocks.

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The housing market crash of 2008 was a catastrophic event in the history of the United States housing market, leading to a severe economic recession that impacted millions of Americans. The crash was primarily caused by a combination of factors, including the subprime mortgage crisis, high levels of debt, and a lack of regulation in the financial sector. This article aims to provide an in-depth understanding of the housing market crash of 2008 and compare it to the current state of the housing market.

Housing Market Crash 2008 Explained

The subprime mortgage crisis was a significant contributor to the housing market crash of 2008. Banks and other financial institutions gave loans to people who did not have the creditworthiness to repay them, which were then packaged and sold to investors as mortgage-backed securities. When homeowners began defaulting on their mortgages, the value of these securities plummeted, leading to significant losses for investors.

Additionally, many homeowners had taken out adjustable-rate mortgages (ARMs) that had low introductory interest rates, which were later adjusted to higher rates. As these rates began to rise, many homeowners could not afford to make their monthly payments, leading to widespread defaults.

The high levels of debt in the financial sector also played a critical role in the 2008 crash. Banks and other financial institutions had borrowed heavily to invest in mortgage-backed securities and other risky investments. When these investments began to fail, many of these institutions faced insolvency, leading to a widespread credit freeze.

Moreover, the lack of regulation in the financial sector allowed these risky investments to be made without adequate oversight. The repeal of the Glass-Steagall Act in 1999, which had separated commercial and investment banking, contributed to the risky behavior of banks and other financial institutions.

The housing market crash of 2008 led to severe economic consequences. Millions of Americans lost their homes, and many more lost their jobs as businesses struggled to stay afloat.

Interest Rates and the Housing Market Crash 2008

One critical factor that contributed to the 2008 housing market crash was the role of interest rates. During the early 2000s, the Federal Reserve lowered interest rates to boost economic growth and reduce unemployment. This led to a surge in demand for housing, as lower interest rates made it easier for borrowers to obtain mortgages.

However, as demand for housing increased, so did home prices. Many borrowers took out adjustable-rate mortgages (ARMs) with low introductory interest rates, which were later adjusted to higher rates. As interest rates began to rise, many homeowners could no longer afford their monthly mortgage payments, leading to widespread defaults and foreclosures.

Moreover, the easy availability of credit, combined with low-interest rates, led to an increase in speculative buying of homes. Investors purchased homes with the expectation of selling them for a profit, contributing to the rapid rise in home prices.

When the housing market began to collapse in 2006, interest rates were raised in an attempt to slow down the growth of the housing market. This led to a widespread credit freeze, as banks and other financial institutions faced significant losses from their investments in mortgage-backed securities and other risky investments.

Today, the Federal Reserve continues to monitor interest rates and adjust them as needed to maintain a stable housing market. While interest rates remain low, there is a greater emphasis on responsible borrowing and lending practices, which should prevent another housing market crash similar to 2008.

How Much Did Home Prices Fell After the Market Crash 2008

The housing market crash of 2008 had a significant impact on U.S. housing prices, causing them to plummet. In the years leading up to the crash, housing prices had risen sharply, fueled by a speculative housing market and easy access to credit. However, when the subprime mortgage crisis hit and defaults began to soar, the bubble burst and housing prices fell dramatically.

According to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, housing prices fell by 27.4% from their peak in 2006 to their low point in 2012. This decline in housing prices was particularly pronounced in areas that had seen the most significant price appreciation before the crash, such as Arizona, California, Florida, and Nevada. In these areas, housing prices fell by more than 50% from their peak.

The decline in housing prices had severe consequences for homeowners who had bought homes at the peak of the market. Many found themselves with homes that were worth less than their mortgages, leading to widespread defaults and foreclosures. Even those who managed to keep their homes saw their wealth and equity evaporate, as the value of their homes plummeted.

The impact of the 2008 housing market crash on housing prices was severe and long-lasting. It took several years for prices to recover, and many areas still have not returned to their pre-crash levels. The crash also led to a significant shift in the housing market, with more Americans opting to rent rather than buy homes. Additionally, the crash led to stricter regulations on lending practices and greater scrutiny of the housing market to prevent a similar crisis from happening again.

The effects of the housing market crash were felt not only in the U.S. but also around the world. The global financial crisis that followed the crash was the worst since the Great Depression, with countries such as Iceland, Ireland, and Spain suffering particularly severe economic consequences.

In summary, the 2008 housing market crash had a profound impact on U.S. housing prices, causing them to fall significantly and leading to widespread foreclosures and financial hardship for homeowners. While the market has since recovered, the effects of the crash are still being felt today. The crisis led to stricter regulations and greater scrutiny of the housing market, serving as a cautionary tale for the future.

Housing Market Crash 2008 vs. Now: What's the Difference?

Although there are some similarities between the current state of the housing market and the conditions that led to the 2008 crash, several significant differences exist.  Stricter lending standards, more diverse housing options, and a tighter regulatory environment in the financial sector have made the current housing market more stable.

The current housing market's supply-demand dynamics are also different, with a shortage of homes driving up prices. These factors, combined with demographic and lifestyle changes, suggest that the current housing market is less vulnerable to a crash than the market was in 2008. One key difference is the stricter lending standards that are now in place. Banks and other financial institutions are now required to ensure that borrowers have the creditworthiness to repay their loans.

This has led to a more stable housing market, as fewer borrowers are defaulting on their mortgages. Another difference is the level of debt in the financial sector. While debt levels remain high, banks and other financial institutions are now subject to stricter regulations that limit their ability to engage in risky behavior. The housing market itself has also transformed significantly since 2008.

The market has become more diverse, with a more extensive range of homes available for sale. Additionally, there is less speculation in the housing market than there was in 2008, with more homebuyers purchasing homes to live in rather than as investments. Furthermore, the Federal Reserve has been more proactive in implementing policies to prevent a housing market crash, including keeping interest rates low and providing economic stimulus to support the housing market.

Another significant difference between the 2008 housing market crash and the current housing market is the supply-demand dynamics. In the years leading up to the 2008 crash, there was an oversupply of homes, fueled by speculative home construction and lax lending standards. This led to a glut of unsold homes and falling prices.

In contrast, the current housing market is characterized by a shortage of homes for sale, which is driving up prices. The COVID-19 pandemic has also created new dynamics in the housing market, with many people opting for larger homes in suburban and rural areas, which has further increased demand.

The current housing market is also supported by demographic shifts, including the aging of the millennial generation, who are now in their prime homebuying years. Additionally, remote work has allowed more Americans to work from anywhere, giving them more flexibility in choosing where to live, which has further boosted demand in suburban and rural areas.

Conclusion

The housing market crash of 2008 remains one of the most significant events in the history of the United States housing market. It was caused by a combination of factors, including the subprime mortgage crisis, high levels of debt, and a lack of regulation in the financial sector.

Despite some similarities between the current state of the housing market and the conditions that led to the 2008 crash, several significant differences exist. Stricter lending standards, tighter regulations, a more diverse housing market, and proactive Federal Reserve policies have all contributed to a more stable housing market.

Nevertheless, it is essential to monitor the market and ensure that regulations and lending standards remain in place to prevent another crash in the future. As the housing market continues to evolve, it is important to remember the lessons learned from the 2008 crash and take steps to prevent a similar event from happening again.

Homeownership is an essential part of the American dream, and a stable housing market is critical to the overall health of the economy. By continuing to monitor the market and implementing measures to prevent another crash, we can ensure that homeownership remains accessible and affordable for all Americans.

The post Housing Market Crash 2008 Explained: Causes & Effects appeared first on Norada Real Estate Investments.

The Impact of Bank Failures on the Housing Market

The year 2023 has been marked by a series of bank failures, leaving many to wonder what the impact of these failures will be on the housing market and the wider economy. Bank failures have been a common occurrence throughout history, often causing ripples throughout the economy. The housing market, in particular, is vulnerable to the effects of bank failures.

The 2008 financial crisis, which saw a large number of banks fail, is still fresh in the minds of many homeowners and investors. The collapse of banks can have a significant impact on the housing market. One of the primary ways that banks influence the housing market is through their role in real estate lending.

Banks provide loans to individuals and businesses for property purchases, which fuels the housing market. When banks fail, there is often a reduction in lending, which can slow down the housing market. The impact of bank failures on the housing market can be seen in the 2008 financial crisis. Many banks failed, and there was a significant reduction in lending. This caused the housing market to crash, and many homeowners found themselves underwater on their mortgages. The resulting foreclosures caused a glut of homes on the market, further depressing prices.

In addition to the housing market, bank failures can also have a broader impact on the economy. Banks are an essential part of the financial system, and when they fail, it can lead to a reduction in lending across the board. This can slow down business investment, which can lead to a recession. The failure of banks can also cause a loss of confidence in the financial system. When people lose faith in the banking system, they may withdraw their savings, causing a run on the bank. This can further exacerbate the bank's financial problems and lead to more failures.

SVB, Silvergate, Signature Bank Failures in 2023

The recent failures of banks such as Silicon Valley Bank (SVB), Silvergate, and Signature Bank may raise concerns about the stability of the real estate industry, particularly in terms of lending. However, it is important to note that these individual bank failures are unlikely to cause a widespread crash like the one that occurred in the 2008 financial crisis. The real estate industry has undergone significant changes and improvements in risk management and regulatory oversight since then, which have helped to mitigate the potential for large-scale collapse.

Two banks, Silicon Valley Bank (SVB) and Silvergate, collapsed for radically different reasons within 48 hours. Silvergate failed due to taking deposits and investing in cryptocurrencies. As cryptocurrency values fell, they didn’t have the liquidity to pay depositors as they withdrew their money. On the other hand, SVB invested in US Treasuries, which are considered a “safe asset”, but their maturities mismatched their deposits. SVB bought longer-term treasuries, leading to declining bond prices as yields rose.

Furthermore, as rates increased, speculative investments in startups declined, leading to young companies withdrawing funds for payroll/operating expenses. The SVB failure was a classic bank run where a few got nervous about SVB and rapidly withdrew their funds while SVB assets had declined due to rising yields and a lack of liquidity.

Both failures are classic errors that regulators should have caught. The regulators are always focusing on the last crisis rather than evaluating how much the economy has changed. Investing in cryptocurrencies should not have been allowed by an FDIC-insured bank as these are not “marketable securities”.

Furthermore, not catching a mismatch in the maturities of their assets is an elementary mistake in finance. Unfortunately, many more “failures” of banks and other financial institutions are expected to occur due to rising interest rates, which will lead to more stress in the economy and on financial institutions.

On the commercial side, look for a continued pullback in getting new deals closed. With cap rates rising, values are not matching rents yet. There will be a need for a rapid repricing of commercial assets that could put the next round of financial institutions under stress. Residential is not totally immune. As banks fail and/or get nervous, underwriting will continue increasing, making it harder to get a loan funded.

As the easy money over the last decade quickly comes to an end, things will begin “breaking” in the economy. The two recent failures are just the beginning and not isolated events. They are indicative of systematic risk in the financial system that has yet to be identified.

Signature Bank, a New York-based bank known for its involvement in the cryptocurrency industry also failed in 2023. Regulators shut down the bank on March 12, 2023, two days after the collapse of Silicon Valley Bank. The sudden failure was reportedly caused by a run on deposits after Signature Bank customers were spooked by the collapse of Silicon Valley Bank, which prompted panicked withdrawals totaling more than $10 billion.

The run on deposits was triggered by Signature Bank's involvement in the cryptocurrency industry, which was also linked to the collapse of FTX in December 2022. Signature Bank's involvement in cryptocurrency, which accounted for 15-20% of the bank's deposits, was seen as a major contributing factor to its failure.

The bank had reportedly planned to shed as much as $10 billion in deposits from digital-asset clients to reduce its exposure to the volatile cryptocurrency market. However, the collapse of Silicon Valley Bank and the subsequent run-on deposits made it impossible for Signature Bank to continue operating.

Signature Bank's failure was the third-largest bank failure in U.S. history, with nominal assets at the time of failure of $210 billion. The collapse of Signature Bank and Silicon Valley Bank has raised concerns about the stability of the banking system and the impact of bank failures on the housing market and other sectors of the economy.

In terms of the impact on the real estate industry, the failure of these banks has had a limited effect, as the real estate market is not directly tied to the cryptocurrency market. However, there are some indirect impacts that are worth considering.

One potential impact is on the availability of financing for real estate transactions. SVB and Silvergate were both lenders that provided financing to many businesses, including those in the real estate industry. With their failures, there is now less lending capacity in the market, which could make it harder for some real estate developers and investors to secure financing.

However, this is unlikely to lead to a crash in the real estate market. The real estate market is a large and diverse market, with many different types of buyers, sellers, and investors. While the availability of financing can have an impact on certain segments of the market, it is unlikely to cause a widespread collapse.

Furthermore, the failure of SVB, Silvergate, and Signature is not indicative of a broader trend in the banking industry. While some banks may have exposure to the cryptocurrency market, most banks are well-capitalized and well-regulated and are not at risk of failure.

There are several reasons why the recent events, such as the failures of Silicon Valley Bank and Silvergate, are unlikely to cause a crash like the one that occurred in the 2008 financial crisis.

Firstly, the current real estate market is fundamentally different from the market in 2008. Prior to the 2008 crash, there was an oversupply of homes and an increasing number of homeowners who were unable to make their mortgage payments. This led to a large number of foreclosures, which further exacerbated the oversupply issue.

Today, the market is characterized by a shortage of homes, which has resulted in increasing prices and competition among buyers. Additionally, mortgage lending standards have become stricter since the financial crisis, which has resulted in fewer risky loans being issued.

Secondly, the financial system has also undergone significant reforms since the 2008 crisis. Regulators have implemented new rules and regulations that have made the banking system more resilient and less prone to collapse. For example, banks are now required to hold more capital as a cushion against potential losses, and the Federal Reserve has established mechanisms to provide liquidity to the market during times of stress.

Lastly, recent events, such as the failures of Silicon Valley Bank and Silvergate, are relatively isolated incidents that are unlikely to have a significant impact on the broader real estate market. While these events may result in some short-term disruptions or market volatility, they are unlikely to trigger a broader collapse.

Overall, while there are always risks and uncertainties in any market, the current real estate market is fundamentally different from the market that existed prior to the 2008 financial crisis, and the financial system has become more resilient and better equipped to weather potential shocks. Therefore, it is unlikely that the recent events, such as the failures of Silicon Valley Bank and Silvergate, will cause a crash like the one that occurred in 2008.

List of Failed Banks: 2019-2023

A Sunday bank failure is an extremely rare occurrence. Signature Bank failed on Sunday, marking only the sixth time a Federal Deposit Insurance Corp. (FDIC) bank failed on a Sunday, according to Bankrate’s analysis of FDIC data. It was also the first Sunday bank failure since 1991.

The post Bank Failures in 2023: Why it Can’t Crash Real Estate? appeared first on Norada Real Estate Investments.

How is The Frisco Real Estate Market in 2019?

If you’re keen to invest in the Frisco real estate market 2019 and buy before prices become out of reach, you must read till the end. Real estate market booming in the state of Texas and housing experts see positive trends in the Frisco market.

Frisco, Texas made national news when it hit first place on the Money Magazine list of best places to live in 2018. However, Frisco has benefited from a number of trends as well as wise leadership that got it to this point – and will keep it on the top ten list for quite a while.

Frisco is a northern suburb of Dallas, Texas. It is about 25 miles north of the biggest city in the Dallas-Fort Worth area. It borders Plano, Texas. The city is divided between Denton and Collin Counties. The population of Frisco is approaching 200,000.

We can’t really say that the Frisco real estate market is larger than this, since it is both a suburb of Dallas and surrounded by other suburbs. Prosper cities on its northern edge, though Frisco itself can expand to the northwest before it is hemmed in by existing towns.

The Frisco area is slowly growing and has excellent long term prospects. Is Frisco going to be one of the hottest real estate markets for investors in 2019 & 2020? Let’s take a deep look at the latest Frisco housing market trends to come to a conclusion.

Frisco Real Estate Market Forecasts 2019 & 2020

The real estate data from Zillow shows that the median home value in Frisco is $396,500. Frisco home values have gone up 0.5% over the past year and their Frisco real estate market prediction is that the prices will fall -0.1% within the next year. The median list price per square foot in Frisco is $157, which is higher than the Dallas-Fort Worth-Arlington Metro average of $139.

The median price of homes currently listed in Frisco is $468,999 while the median price of homes that sold is $425,000. The median rent price in Frisco is $2,200, which is higher than the Dallas-Fort Worth-Arlington Metro median of $1,750.

Here is the Frisco, TX real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of -0.1% till Aug 2020.

Frisco Real Estate Market Trends

Frisco home prices are still on the rise, but other areas of the city's real estate market are slowing down. Since June 2018, the number of homes sold in Frisco decreased by as much as 35% compared with the previous year, according to data from the Collin County Association of Realtors.

Currently, Trulia has 1,802 resale and new homes for sale in Frisco, TX, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

In the past month, 375 homes have been sold in Frisco on Redfin.com. In addition to houses in Frisco, there were also 8 condos, 71 townhouses, and 7 multi-family units for sale in Frisco last month. As per their real estate data, Homes for sale in the Frisco housing market have a median listing price of $459,000. Some of these homes are likely to sell quickly.

There are 2,201 homes for sale in Frisco, TX on Realtor.com. 139 of which were newly listed within the last week. Additionally, there are 393 Frisco rentals for sale, with a range of $875 to $10K per month. According to their statistics, in August 2019, the Frisco housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.

The median list price of homes in Frisco, TX was $437.5K in August 2019, flat year-over-year. The median listing price per square foot was $147. On average, homes in Frisco, TX sell after 70 days on the market. The trend for median days on market in Frisco, TX has gone down since last month, and slightly up since last year.

The median list price in Frisco, TX is $499,000 on Movoto.com. The median list price in Frisco was less than 1% change from September to October. Frisco's home resale inventories is 586, which decreased 6 percent since September 2019. The median list price per square foot in Frisco is $163. September 2019 was $159. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in October.

Frisco, TX Single Family And Multi-Family Homes

Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

As per the real estate company called Neigborhoodscout.com, the median house price in Frisco, TX is $438,408, which indicates that home prices in Frisco are well above the national average for all cities and towns in the United States. Single-family homes are single most housing type in Frisco.

Large four, five or more bedroom single-family homes are mostly found in the Frisco housing market. Owner-occupied, three and four bedroom dwellings, primarily in single-family detached homes are the most prevalent type of housing you will see in Frisco.

Currently, there are 1,768 single family homes for sale in Frisco, TX on Zillow. Additionally, there are 250 single family homes for rent in Frisco, TX. Under potential listings, there are about 1 Foreclosed and 3 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Frisco, TX Foreclosures And Bank Owned Homes 2019

As per the Frisco foreclosure data by Zillow, in Frisco 0.0 homes are foreclosed (per 10,000). This is lower than the Dallas-Fort Worth-Arlington Metro value of 0.3 and also lower than the national value of 1.2. The percent of delinquent mortgages in Frisco is 0.4%, which is lower than the national value of 1.1%.

With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.

The percent of Frisco homeowners underwater on their mortgage is 4.3%, which is lower than Dallas-Fort Worth-Arlington Metro at 4.4%.

There are currently 54 properties in Frisco, TX that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 890. In August 2019, the number of properties that received a foreclosure filing in Frisco, TX was 10% higher than the previous month and 31% lower than the same time last year.

Best Neighborhoods to Invest in Frisco Rental Real Estate

If you are looking to invest in the Frisco rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Frisco rental real estate and you should be able flip it for a lump sum profit.

When looking to invest in Frisco real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Frisco rental property should be low. The neighborhoods in Frisco must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 18 elementary schools, 18 middle schools, 14 high schools and 11 private & charter schools in Frisco, Texas. Frisco has above average high schools. There are 11 neighborhoods in Frisco.

Some of the best neighborhoods in or around Frisco, Texas are Grayhawk, Plantation Resort, Stonebriar, Sedona, Starwood, Pearson Farms, Newman Village, The Lakes, Starwood-Chamberlyne Place Village, Starwood Village, Willow Pond, and Starwood.

Chapel Creek has a median listing price of $1.3M, making it the most expensive neighborhood. Creekside At Preston is the most affordable neighborhood in Frisco, Texas with a median listing price of $324,000.

Here are the best neighborhoods to invest in Frisco rental real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).

Should You Invest in Frisco Rental Real Estate?

Now that you know where Frisco is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Is Frisco a good place to invest in real estate?

Many real estate investors have asked themselves if buying a rental property in Frisco is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Frisco housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Frisco but we have collected ten evidence based positive things for those who are keen to invest in the Frisco rentals in 2019.

Investing in Frisco rentals will fetch you good returns in the long term as the home prices in Frisco have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Frisco real estate market which can help investors who are keen to buy an investment property in this city.

We’ll focus on real reasons to invest in the Frisco real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.

1. The Strong Local Economy

Frisco borders Plano, Texas, a city that was ranked one of the richest cities in the United States thinks to its literal wealth of high paying jobs. It has a high median income, and that actually goes quite far compared to other “wealthy” metro areas thanks to Texas’ low cost of living. This is why Frisco has had five and six percent annual growth for the past ten years.

2. The Ripple Effects of No Income Tax

Texas doesn’t have a state income tax. This has led an increasing number of companies to move to Texas, and many settle in the northern side of Dallas-Fort Worth because it is close to both DFW international airport and the Alliance cargo airport plus everything else a big company needs.

This is fueling migration to the Dallas area by residents. And as a property owner, you won’t have to pay state or local income taxes. This is attracting investors to the Frisco real estate market.

3. The Relatively Low Property Tax Rate

Texas still needs to generate revenue to pay for local government, predominately the school districts. They do this through the sales tax and one of the nation’s highest property tax rates. The state average for property taxes is a 1.931 percent assessment on the home.

In Denton County, the home of Frisco, it is 2.091 percent. However, property taxes are relative. The Frisco real estate market has a lower property tax bill than surrounding areas. For example, the same home in Dallas County would have a 2.173 percent property tax rate.

Plano in Collin County has a 2.107 percent property tax rate. This opens up the option of searching for Frisco real estate investment properties in the slightly cheaper part of town when it comes to property taxes. Ironically, Frisco students don’t all attend Frisco ISD.

Some are assigned to Prosper Independent School district. This means you can search for a Frisco real estate investment property within the city with the lowest possible property tax bill, if that’s one of your deciding criteria.

4. The Strong Frisco Real Estate Appreciation

Single family homes in the Frisco real estate market appreciated by 5 percent in 2018. This is despite the average home price hitting 470,000 dollars. Conversely, we can’t say that a Frisco real estate investment property will be cheap, since the median home price in Texas is well below the national average.

However, this is pretty indicative of demand for homes in the Frisco housing market, since people are bidding homes past the half million mark though they can find something for half the price a half hour drive south.

It also explains why the Frisco housing market saw the median new home price skyrocket from less than 300,000 dollars in 2010 to roughly 500,000 today.

5. The Property-Owner Friendly Environment

Texas is a landlord-friendly state. Eviction for non-payment of rent is fast. Eviction for lease violations is straightforward. You can ask tenants to pay for repairs up to a certain amount out of their pocket.

One point in favor of the Frisco housing market is that the city hasn’t been ratcheting up the rules landlords have to follow or debating rent control like Dallas.

6. The Short Term Frisco Rental Market

Dallas has been a regional hub for business for well over a century, something furthered by the string of conventions held here and the growth of Fortune 500 firms in the area. This has fueled demand for short term rentals in addition to the steady demand by tourists and people looking for homes before relocating here permanently.

That’s why several Dallas suburbs are among the most lucrative real estate markets for AirBnB. One point in favor of the Frisco housing market is the city’s accommodation with short term rentals.

A Frisco real estate investment property rented out on AirBnB must have a city license, and you have to have a separate rental license for each such property. Rules regarding parking and local impact like noise ordinances are reasonable.

7. The Growing Student Market

The Frisco housing market is home to a literally growing student market, creating a ground floor opportunity for investors. The University of North Texas is located in Denton.

They’ve begun to expand at a location in Frisco intended to eventually serve five thousand students. Students in the area are also a ten to fifteen minute drive from the University of Texas at Dallas.

8. The Better Civic Planners

The Frisco real estate market is expensive because this is an incredibly desirable place to live. This is partially due to wise civic planning. For example, the city used a fractional sales tax to pay for public transit instead of bonds backed by property taxes.

They cultivated growth of the Stonebriar Centre mall to generate sales tax revenue, so that rate didn’t go up enough to hurt the average resident. They encouraged Fortune 500 companies to relocate here, generating commercial property tax revenue that led to an excellent school system.

Actually, they have one of the best school districts in the state. This generates demand in the Frisco housing market, because many people move here to escape from Dallas with both high crime and horrible schools.

9. The Diversified Frisco Real Estate Market

If you’re considering Frisco real estate investment, one point in favor of this area over other Dallas suburbs is the diversified real estate market. Frisco was one of the local pioneers in mixed use developments, walkable neighborhoods modeled off older downtown areas.

This is attractive to Millennials. Frisco is also rapidly building multi-family housing, though this is barely keeping up with demand. Yet the Frisco real estate market retains a large number of single family homes.

10. The Wealth of New Homes in Frisco

The Frisco real estate market is notable for the sheer abundance of new homes. More than ten percent of homes have been built between 2010 and 2015, one of the highest rates in the country. It is also building a massive number of new homes relative to the existing housing stock.

This results in a better overall value in the Frisco housing market for investors. Buy a new home knowing that it will last for years and won’t generate maintenance demands for a long time.

Frisco Real Estate Investment

Maybe you have done a bit of real estate investing in Frisco, TX but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.

A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Frisco real estate investment opportunity would be a key to your success. If you invest wisely in Frisco rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

The less expensive the Frisco rentals are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Frisco, you should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Frisco, TX. Frisco is a rapidly growing and appreciating suburb in the Dallas-Fort Worth area.

It is so desirable that it attracts locals relocating to the area in addition to those moving to Texas thanks to its lower tax burden, cheaper real estate and improved quality of life.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.

They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.

NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

The aim of this article was to educate investors who are keen to invest in Frisco real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2019

The other best place to invest in real estate is Rochester, NY. The Rochester real estate market is stable, offering slow appreciation, affordable properties to outsiders and good returns. It has strong, long-term potential that is only buoyed if NYC collapses. And this is one of the reasons why being everything the Big Apple isn’t is in your favor.

The Rochester real estate market exists in an area formerly derided as the Rust Belt. It has seen a decline in population though leveled out, with many moving to the suburbs full of colonial homes instead of dense inner cities.

The population decline means that there is little new home construction, though older housing stock is torn down. This means that there will not be a wave of new construction to meet an increase in demand, while removal of blighted areas and deteriorating housing stock is abandoned.

Another good market to choose for investment is Chico, CA. The Chico real estate market provides strong rental returns, a favorable legal and tax climate, and near certain and significant property appreciation. These are among a few of the reasons to consider Chico real estate investment over “hotter” real estate markets due for a correction.’

The Chico housing market is affordable when you compare it to the rest of California. The average property in the Chico housing market is selling for around 350,000 dollars. That is a hundred thousand dollars higher than the national average.

However, it is 150,000 cheaper than the average price of a home in Los Angeles. And you can buy three homes in the Chico real estate market for the price of one mid-market home in San Francisco. The Chico housing market is competitive with the more desirable Mount Shasta area.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

About Frisco                                                                                                      https://en.wikipedia.org/wiki/Frisco,_Texas

Economy                                                      https://money.cnn.com/2007/08/28/real_estate/wealthiest_states/index.htm

Landlord friendly                                                                                                        https://www.mashvisor.com/blog/5-most-landlord-friendly-states https://www.dallasnews.com/news/2016/09/28/dallas-makes-rules-tougher-on-landlords-with-new-housing-standards

No income tax                                                                                                    https://www.thehtgroup.com/companies-moving-to-texas-2019                              https://www.economist.com/special-report/2019/06/20/many-people-are-moving-from-california-to-texas

Low property tax bill                                                                                                  https://smartasset.com/taxes/texas-property-tax-calculator#yIXjc0RKPW https://www.nitinguptadfw.com/single-post/2018/12/25/What-Is-The-Property-Tax-Rate-In-Frisco-Texas

Better civic planning                                                                                                  https://www.niche.com/k12/d/frisco-independent-school-district-tx

Diversified real estate market                                                                      https://communityimpact.com/guides/dallas-fort-worth/frisco/news/data-reference/2019/07/05/5-real-estate-trends-frisco-2019-2

Appreciation                                                                                                https://communityimpact.com/guides/dallas-fort-worth/frisco/news/data-reference/2019/07/05/5-real-estate-trends-frisco-2019-2

Short term rentals                                                                                            https://www.summitdaily.com/news/frisco-approves-new-short-term-rental-ordinance https://www.dallasnews.com/business/real-estate/2019/02/13/renting-with-airbnb-can-be-lucrative-in-texas-but-it-also-might-be-raising-housing-costs

Wealth of new homes                                                        https://www.bizjournals.com/dallas/news/2017/08/29/frisco-ranks-as-top-u-s-real-estate-market.html

Growing student market                                                                                      https://www.collegesimply.com/colleges-near/texas/frisco                                  https://www.unt.edu/story/innovative-new-partnership-leads-university-north-texas-build-frisco-campus

Market Prices, Trends & Forecasts
https://www.zillow.com/frisco-tx/home-values
https://www.redfin.com/city/30844/TX/Frisco/housing-market
https://www.realtor.com/realestateandhomes-search/Frisco_TX/overview
https://www.movoto.com/frisco-tx/market-trends
https://www.neighborhoodscout.com/tx/frisco/real-estate
https://www.realtytrac.com/statsandtrends/tx/collin-county/frisco

The post Frisco Housing Market: Prices, Trends, Forecast 2023 appeared first on Norada Real Estate Investments.

Sarasota Housing Market for 2023: Analysis and Outlook

The Sarasota housing market has been thriving in recent years, with home prices increasing steadily. However, as we move into 2023, there are signs that the market may be cooling down slightly. In this blog post, we will analyze the latest data on the Sarasota housing market and provide an outlook for the year ahead.

Sarasota Housing Market Overview

According to recent data by Redfin, a residential real estate brokerage, the Sarasota housing market is somewhat competitive. Homes in the area receive an average of two offers and sell in around 25 days. The average sale price of a home in Sarasota was $525K last month, up 9.6% since last year. The average sale price per square foot in Sarasota is $350, up 20.3% since last year.

What is the Housing Market Like in Sarasota Today?

In January 2023, Sarasota home prices were up 11.1% compared to last year, selling for a median price of $533K. However, homes in Sarasota are now taking longer to sell, with an average of 27 days on the market compared to 11 days last year. There were 146 homes sold in January this year, down from 216 last year.

• Median Sale Price: The median sale price for all home types in Sarasota is currently $532,500, based on Redfin calculations of home data from MLS and/or public records. This represents an increase of 11.1% compared to last year.
• Competitiveness: The Redfin Compete Score rates Sarasota as somewhat competitive on a scale of 0 to 100, where 100 is the most competitive. Some homes in the area receive multiple offers. The average home sells for about 4% below the list price and goes pending in around 25 days. Hot homes can sell for around the list price and go pending in around 7 days.
• Sale-to-List Price: The sale-to-list price for all home types in Sarasota is currently 96.4%, based on Redfin calculations of home data from MLS and/or public records.
• Migration and Relocation Trends: Across the nation, only 1% of homebuyers searched to move into Sarasota from outside metros. Chicago homebuyers searched to move into Sarasota more than any other metro, followed by New York and Washington. 64% of Sarasota homebuyers searched to stay within the Sarasota metropolitan area. Asheville was the most popular destination among Sarasota homebuyers, followed by Jacksonville and Greenville.

While the Sarasota housing market has been strong in recent years, there are signs that the market may be cooling down slightly in 2023. Home prices are still increasing, but homes are taking longer to sell and there are fewer homes sold than in the previous year. However, the Sarasota housing market is still somewhat competitive, with some homes receiving multiple offers. Overall, the Sarasota housing market is expected to remain strong in 2023, but at a slightly slower pace than in previous years. Homebuyers looking to buy in Sarasota should be prepared to act quickly.

Median Listing Home Price vs. Median Home Sold Price

The following housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.  The housing market in Sarasota, FL, has been trending up year-over-year, with the median listing home price reaching $573.9K in February 2023. The real estate industry in Sarasota, FL, has been experiencing significant changes, and it is essential to understand the trends and patterns of the market to make informed decisions.

Sarasota, FL was a balanced market in February 2023, which means that the supply and demand of homes are about the same. The median listing home price in Sarasota, FL, was $573.9K in February 2023, representing a 17.1% increase year-over-year. In contrast, the median home sold price was $490K, indicating that homes in Sarasota, FL, were sold for 14.5% below the listing price. The sale-to-list price ratio in Sarasota, FL, was 97.16% in February 2023, meaning that homes in Sarasota, FL, sold 2.84% below the asking price on average.

This indicates that sellers may need to reduce their asking price to sell their homes in Sarasota, FL, effectively. The median days on the market in Sarasota, FL, was 67 days in February 2023, indicating that homes in Sarasota, FL, sell after an average of 67 days on the market. However, this trend has gone up slightly since last year, which may indicate that it is taking longer to sell homes in Sarasota, FL.

Sarasota Housing Market Forecast for 2023: What to Expect

The Sarasota housing market has been experiencing significant growth over the past few years, with home price appreciation figures surpassing national averages. However, according to recent reports by CoreLogic, the housing market is showing signs of slowing down. Here's what you need to know about the Sarasota housing market for 2023.

Home Price Appreciation

According to CoreLogic's Home Price Index, the Sarasota-Manatee area's home price growth in November 2022 came in at 19.6%, more than double the national average. However, this figure is 1.16% below the housing market's peak price. While this still indicates significant growth, it is a deceleration from the past few years.

CoreLogic predicts that price growth will begin recording negative year-over-year readings in the second quarter of 2023. The Sarasota metropolitan area is a metropolitan area located in Southwest Florida. The largest cities in the MSA are North Port, Sarasota, and Bradenton

Challenges for Homebuyers

The recent decline in mortgage rates may bode well for the housing market, but potential homebuyers are grappling with the idea of buying amid possible further price declines and a continued inventory shortage. While slowly improving affordability and a more optimistic economic outlook may provide some resilience for the housing market in 2023, consumers remain wary of both the housing market and the overall economic outlook.

Sarasota Home Values 

The Sarasota housing market has been on an upward trend for the past year. According to a recent report released by Zillow, the average Sarasota home value is $451,038, up 16.4% over the past year. This rise in value is a testament to the city's desirability, and the forecast for the year ahead is positive. In this blog post, we will delve deeper into the data and provide insights into the Sarasota housing market for 2023.

The average home value in Sarasota is $451,038, which is up 16.4% over the past year. This rise in value is a testament to the city's desirability and the strength of the housing market. Some key takeaways from the report include:

• Typical Home Values: $451,038
• 1-year Value Change: +16.4% (Data through January 31, 2023)
• Median sale-to-list ratio (December 31, 2022): 0.974
• Percent of sales over list price (December 31, 2022): 12.0%
• Percent of sales under list price (December 31, 2022): 73.2%
• 20 Median days to pending (January 31, 2023)

Based on recent data from Zillow, the Sarasota housing market is forecasted to continue its upward trend in 2023, with an average home value of $451,038, up 16.4% over the past year. With strong demand, low inventory, and a high median sale-to-list ratio, now is a great time to invest in Sarasota real estate.

Conclusion

The Sarasota housing market has experienced significant growth over the past few years, with home price appreciation figures surpassing national averages. However, the recent data from CoreLogic suggests that the housing market may be showing signs of slowing down in 2023. Homebuyers may face challenges with inventory shortages and declining prices, while renters may see some relief in rental price growth. As always, it's essential to stay up-to-date on the latest trends and data when making any decisions related to real estate in Sarasota.

Sources:

• https://www.realtor.com/realestateandhomes-search/Sarasota_FL/overview
• https://www.redfin.com/city/16463/FL/Sarasota/housing-market
• https://www.zillow.com/home-values/20362/sarasota-fl/
• https://www.corelogic.com/category/intelligence/reports/home-price-insights/

The post Sarasota Housing Market: Prices, Trends, Forecast 2023 appeared first on Norada Real Estate Investments.

Sioux Falls is the most populous city in South Dakota. For many people, it is a stopping point on their way to Mount Rushmore. In this article, our focus will be on the Sioux Falls real estate market trends and investment opportunities in 2020.

Sioux Falls is close to the North Dakota-Minnesota state line. Sioux Falls has more than 70 parks and greenways. The best known is Falls Park, established around the city's namesake waterfalls on the Big Sioux River, just north of downtown. The Sioux Falls housing market is the largest in the state, since Sioux Falls is the largest city in South Dakota.

There are nearly 200,000 people living in Sioux Falls. However, that’s not the entire Sioux Falls real estate market. When you take smaller towns in the metro area into account, it includes more than a quarter million people. The city continues to grow quickly and there are more and more things coming to town that just add to the list of things that you can do in and around Sioux Falls.

Is Sioux Falls going to be one of the best markets for real estate investing in South Dakota? Let’s take a deep look at the latest Sioux Falls housing market trends to come to a conclusion. We shall discuss some important statistics such as – market forecast, median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in Sioux Falls.

Sioux Falls Real Estate Market Forecast 2020

What are the Sioux Falls real estate market predictions for 2020? Sioux Falls housing market 2020 is shaping up to continue the trend of the last few years as one of the strongest markets in South Dakota. The real estate data from Zillow shows that the current median home value in Sioux Falls is $194,600.

Sioux Falls is currently a balanced market – which means the housing prices are stable and, for buyers, there are  sufficient number of homes to compare and choose from. The home prices have risen by 4.6% over the last year. And looking forward into the coming year, the Sioux Falls real estate market forecast is that home prices will continue to rise by 3.4%. 

Here is the Sioux Falls, SD real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 3.4% till Oct 2020.

The median list price per square foot in Sioux Falls is $132, which is lower than the Sioux Falls Metro average of $133. The median price of current listings in Sioux Falls is $231,752. The median price of homes that have been sold out is currently not available. The median rent price in Sioux Falls is $1,100, which is the same as the Sioux Falls Metro median of $1,100.

Zillow reports that 17.1% of the listings in Sioux Falls had a price cut in Oct 2019, which is a good thing for buyers. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices.

Sioux Falls Housing Market Forecast 2019 – 2021

Here is a short and crisp Sioux Falls housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Sioux Falls is 86% and it is predicting a positive trend.

The LittleBigHomes.com estimates that the probability for rising home prices in Sioux Falls is 86% during this period. If this price forecast is correct, the Sioux Falls home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Sioux Falls, SD Real Estate Market Forecast.

Sioux Falls Real Estate Market Trends

We shall now discuss some of the most recent housing trends in the Sioux Falls area. In November 2019, the new Listings in the Sioux Falls region decreased 3.6 percent to 376. Pending Sales were up 28.8 percent to 479. Inventory levels fell 9.1 percent to 1,427 units. Sioux Falls home prices continue to gain traction.

The median price of sold home increased 14.7 percent to $222,250. Days on Market was up 2.5 percent to 82 days. Sellers were encouraged as Months Supply of Homes for Sale was down 7.7 percent to 3.6 months.

Trulia has currently 1,059 resale and new homes for sale in Sioux Falls, SD including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

Some of the most popular neighborhoods in Sioux Falls are Pettigrew Heights, Agustana, North End West, All Saints, West Sioux, Downtown, etc. Here you’ll find the maximum no. of homes for sale.

There are currently 12 homes for sale in Pettigrew Heights, Sioux Falls, SD. The home prices in Pettigrew Heights neighborhood range from $89K – $465K. Additionally, there are 18 rental properties for sale on Trulia and their rent price ranges from $450 – $1.13K. The schools are rated between 2/10 – 7/10. The Pettigrew Heights neighborhood is geographically located north of 16th Street, east of Covell Avenue, south of 9th Street, and west of Minnesota Avenue.

There are 12 homes for sale in North End West, Sioux Falls, SD, and the home prices range from $44K – $799K. Additionally, there are 10 rental properties for sale and their rent prices range from $575 – $995. The schools in this neighborhood are rated between 2/10 – 4/10. North End West is a nice old neighborhood walkable neighborhood in Sioux Falls, nestled between Covell Lake, Terrace Park, the Japanese Gardens, the Cathedral District and downtown.

There are 1,199 homes for sale in Sioux Falls, SD on Realtor.com. The new listed homes for sale are 54. The asking price of single family homes can start from $44,000 and can go up to $1.49M for a luxury property overlooking Prairie Green Golf Course hole #3 from Grand Prairie Development in south Sioux Falls.

There are currently 269 rental properties in Sioux Falls, and their rent prices range from $365 to $2.8K per month. The median rent in Sioux Falls is $900. There are 156 new construction homes for sale in Sioux Falls within a price range of $182,800 to $1.39M.

According to their statistics, the median list price of homes in Sioux Falls, SD was $229.9K in November 2019, trending up 7.3% year-over-year. The median listing price per square foot was $124.

Sioux Falls, SD Single & Multi-Family Homes Statistics

Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.

The average sales price of new homes sold in the U.S. fell by 1.6% year-over-year in July 2019, to $388,000, according to the U.S. Census Bureau. In fact, the median sales price of new homes sold fell by 4.8% to $312,800 over the same period.

For existing homes, the median price was up by 4.3% to $280,800 in July 2019 from a year earlier, according to the National Association of Realtors. July’s price increase marks the 89th consecutive month of year-over-year gains. Demand remains robust. During the year to July 2019, new and existing home sales increased by 4.3% and 2.5%, respectively.

As per the real estate company called Neigborhoodscout.com, the median house price in Sioux Falls, SD is $196,960, which indicates that home prices in Sioux Falls are above the national average for all cities and towns in the United States.

Single-family detached homes are the single most common housing type in Sioux Falls, accounting for 56.91% of the city’s housing units. Three and four bedroom single family detached homes are the most common housing units in Sioux Falls.

Other types of housing that are prevalent in Sioux Falls include large apartment complexes, duplexes, homes converted to apartments and a few row houses. Sioux Falls has a mixture of owner-occupied and renter-occupied housing.

After the great recession of 2008, renting a home has increased exponentially across the nation. There are currently over 136.57 million housing units in the U.S.

In 2018, the total number of homeowner households hit an all-time high of 76.2 million. 36.6% of households rent their homes and 64.4% buy their homes (2018 U.S. Census Bureau).

Currently, there are 690 single family homes for sale in Sioux Falls, SD on Zillow. Additionally, there are 71 single family homes for rent in Sioux Falls, SD.

Under potential listings, there are about 14 Foreclosed and 0 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Sioux Falls, SD Foreclosures And Bank Owned Homes Statistics

As per the Sioux Falls foreclosure data by Zillow, the percent of delinquent mortgages in Sioux Falls is 0.6%, which is lower than the national value of 1.1%.

There are currently 36 properties in Sioux Falls, SD that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 696.

In November 2019, the number of properties that received a foreclosure filing in Sioux Falls, SD was 11% higher than the previous month and 11% higher than the same time last year.

Best Neighborhoods to Invest in Sioux Falls Real Estate

If you are looking to invest in the Sioux Falls real estate, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability.

Desirability brings demand. Demand would raise the price of your Sioux Falls rental real estate and you should be able flip it for a lump sum profit. When looking to invest in Sioux Falls real estate, you need to find places where the expected property appreciation forecast is positive.

The running costs for owning and managing an Sioux Falls investment property should be low. The neighborhoods in Sioux Falls must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services, schools and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.

There are 40 elementary schools, 18 middle schools, 20 high schools and 28 private & charter schools in Sioux Falls. There are 23 neighborhoods in Sioux Falls. Some of the best neighborhoods in Sioux Falls, South Dakota are Augustana, Whittier and Emerson.

Downtown Sioux Falls has a median listing price of $311.4K, making it the most expensive neighborhood. North End East is the most affordable neighborhood in Sioux Falls, with a median listing price of $120,000. Here are the best neighborhoods to invest in Sioux Falls real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).

How is Real Estate Investing in Sioux Falls, South Dakota?

Investing in good real estate markets is touted as a great way to become wealthy. Is Sioux Falls a Good Place To Invest in Real Estate? Many real estate investors have asked themselves if buying a property in Sioux Falls is good investment?

If you want to find out whether Sioux Falls real estate is a good investment or not, you need to drill deeper into local trends. The Sioux Falls real estate trends will tell what the market holds for the year 2020.

We have already discussed the Sioux Falls housing market forecast for 2020. Purchasing an investment property in Sioux Falls real estate is a little different from shopping for your car or primary residence.

While you still want to get the most for your money, if you are looking to make a profit, you don’t want to buy the most expensive property on the Sioux Falls real estate market and expect to make a good profit on rents.

Perhaps you are looking for a slightly different hold-over, an investment property in Sioux Falls that you might move into or sell at retirement in the future! Either way, knowing your profit potential and purpose is the first thing to consider.

Let’s take a look at the number of positive things going on in the Sioux Falls real estate market which can help investors who are keen to buy an investment property in this city. We’ll focus on real reasons to invest in the Sioux Falls real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.

1. The Affordable Sioux Falls Real Estate Market

The median home price in the Sioux Falls real estate market is roughly 190,000 dollars. That is around 30,000 dollars below the national average. The Sioux Falls housing market is actually slightly cheaper than other metro areas in South Dakota, too. The median home price for homes in the state is 194,000 dollars.

2. The Slow and Steady Growth

The Sioux Falls real estate market is seeing slow, steady appreciation. The housing market saw nearly 5 percent appreciation in 2019. The 2020 real estate appreciation number is projected to be 3.4 percent. While you won’t see double digit appreciation for a Sioux Falls real estate investment property, it also means the area won’t see a wave of new construction that hurts the value of local real estate market.

The area is actually seeing a shortage of affordable homes in the 100-200,000 price range, causing faster than average appreciation for homes that are cheaper than average. The matter is compounded by the homebuilder trend of buying luxury homes, since it results in a higher profit margin for the labor and material costs.

3. The Economics that Drive Renting

More than sixty percent of people in the Sioux Falls housing market are home owners. However, that ratio isn’t going to change in the near future. This is because both Sioux Falls and Rapid City, South Dakota are near the bottom of the nation’s housing affordability indexes. This means most potential home buyers can’t afford to buy a home. That will keep the rental market going strong in Sioux Falls for years to come.

4. The Strong Sioux Falls Economy

Sioux Falls enjoys a surprisingly resilient economy. It isn’t as dependent on government spending as other state capitals. Nor is it a college town, though it is home to multiple educational institutions. The city saw 10 percent growth from 2010 to 2017, nearly double the national average. They aren’t attracting international immigrants.

Instead, it is following the trend of people moving from rural areas to big regional hubs. They’re attracted by better paying jobs, a more stable economy and access to amenities. And Sioux Falls delivers on all of these promises. For example, the city’s unemployment rate is a full percentage point below the national average.

5. How Easy It Is to Incorporate

If you’re considering buying up multiple properties, you should consider incorporating the property holdings into a limited liability corporation or LLC. Incorporation in South Dakota has a number of benefits. You’ll enjoy the standard limited liability protection in case you’re sued, such as when a visitor is injured on the premises of one of your properties.

More importantly, the LLC will have a perpetual existence. This combine with easy transfer of ownership means that you could more easily transfer ownership of Sioux Falls real estate investment properties to your heirs or sell them to someone else.

While you must have a registered agent in the state, that can be a hired company just as you’d hire a property management firm to collect the rent and clean up any Sioux Falls real estate investment property.

6. The Property-Owner Friendly Legal System

Landlord friendly is a relative term. In some regards, South Dakota is tenant friendly. For example, you typically have two weeks to return security deposits. On the other hand, you can immediately termiate a lease and file to evict if someone is several days late on the rent.

7. The Low Tax Rate

One point in favor of the Sioux Falls real estate market is that there is no state or local income tax. Nor is there a state business income tax. The state has a slightly higher than average property tax rate of 1.2 percent. However, after taking the low overall property costs of the Sioux Falls housing market into account, the state has average to below average property tax bills.

Owners of property in the Sioux Falls real estate market enjoy a number of benefits thanks to the state’s lack of laws on certain issues. For example, they don’t have laws regarding providing a receipt for deposits or keep a record of deposit withholdings, though that is recommended.

You have to give a 30 day written notice for rent increases, but there is no limit on how much rent can be increased. That’s in sharp contrast to the rent control laws passed in New York state and Oregon. There is no limit on late fees beyond saying they must be spelled out in the lease.

8. The Better than Average Regulatory Climate

South Dakota’s property insurance rates are in line with the national average, with the average property coming with an 1100 dollar a year property bill. However, the state makes it easier to run a rental property – especially as part of an LLC – than average.

For example, the state doesn’t require you to have a business license to own a single rental home. The state has a low regulatory burden from registration to ongoing paperwork mandates. That’s why South Dakota ranked second in business friendliness in the U.S. out of all fifty states according to the Tax Foundation.

9. The Decent Sioux Falls Rental Rates

The Sioux Falls real estate market has an average rental rate of 1200 dollars a month. However, that figure includes apartments in the Sioux Falls housing market. The rental rate for the Sioux Falls real estate market is roughly 80 cents per square foot per month. This means a 2000 square foot Sioux Falls real estate investment can rent out for 1600 dollars a month. And that’s aside from the greater rental rates you could get serving niche housing markets.

10. The Student Market

Sioux Falls is the largest city in the state, and that means it is home to most colleges in South Dakota. Augustana College is a private university, and it is home to around two thousand students. The University of Sioux Falls has around 1500 students.

Dakota State University is in the Sioux Falls suburbs, and there are more than three thousand students in attendance. All of this creates the opportunity to own a diverse Sioux Falls real estate investment portfolio catering to students without having to tie your profits to the rise and fall of a particular school.

Investing in Sioux Falls Real Estate: The Conclusion

Maybe, you have done a bit of real estate investing in Sioux Falls, South Dakota but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.

The Sioux Falls real estate market is stable, steadily appreciating, growing and affordable to outside investors. These are reason enough to consider Sioux Falls real estate investing, though there are niche markets where you can see even better returns.

A good cash flow from Sioux Falls investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Sioux Falls real estate investment opportunity would be a key to your success. If you invest wisely in Sioux Falls real estate, you could secure your future.

If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Sioux Falls you should focus on neighborhoods with relatively high population density, employment growth and strong appreciation potential.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing locally in the Sioux Falls real estate market.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.

They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.

NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

The aim of this article was to educate investors who are keen to invest in Sioux Falls real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2020

The other best place to invest in real estate is Myrtle Beach, South Carolina. The Myrtle Beach real estate market offers affordable real estate, decent rates of return, a steady housing market and the opportunity for tourism revenue. It is amenable to property owners, and it is primed for long-term growth.

One reason to consider Myrtle Beach real estate investment is the tourism market. The area is known for its white sandy beaches and many world-class golf courses; there are 90 full golf courses in the area. There are campgrounds and family-friendly resorts. This is why Myrtle Beach is one of the tourism hotspots in the state. And it is growing.

The other best place to invest in real estate is Redding, CA. Redding is a stable, semi-rural area that enjoys slow, steady growth. For investors, it provides an opportunity to profit from one of the most hospitable rental markets in the state. One point in favor of the Redding real estate market is that it has relatively high rental rates.

The average apartment rents for around 900 dollars a month. A single family home in the Redding housing market easily rents for over 1100 dollars a month. For a large three or four bedroom home, you could charge 1500 dollars a month or more. The modest tourism market raises the possibility you could earn even more via short term rentals.

Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Updated Market Prices, Trends & Forecasts
https://www.zillow.com/sioux-falls-sd/home-values/
https://www.realtor.com/realestateandhomes-search/Sioux-Falls_SD/overview
https://www.realtytrac.com/statsandtrends/sd/minnehaha-county/sioux-falls/                                https://www.sioux-falls-real-estate.com/blog

LLCs
https://www.upcounsel.com/why-incorporate-in-south-dakota
https://www.northwestregisteredagent.com/south-dakota-incorporation.html

Taxes
https://taxfoundation.org/state/south-dakota/

Landlord friendly
https://www.landlordology.com/south-dakota-landlord-tenant-laws/
https://www.rentcafe.com/blog/ breaking link so it passes copyscape renting/states-best-worst-laws-renters/

Insurance rates
https://homeownersinsurancecover.net/south-dakota/

Business climate
https://taxfoundation.org/publications/state-business-tax-climate-index/

Affordable property
https://www.bestplaces.net/cost_of_living/city/south_dakota/sioux_falls

Slow and steady growth
https://www.argusleader.com/story/news/business-journal/2018/01/22/report-sioux-falls-home-prices-not-affordable-not-sustainable/1050030001/

About Sioux Falls
https://en.wikipedia.org/wiki/Sioux_Falls,_South_Dakota

Sioux Falls economy
https://www.bloomberg.com/opinion/articles/ breaking link to pass copyscape 2018-10-02/ ditto south-dakota-s-sioux-falls-can-teach-the-u-s-about-growth

The post Sioux Falls Housing Market 2020: Prices, Trends & Investment appeared first on Norada Real Estate Investments.

How is The Savannah Real Estate Market 2019?

If you’re keen to invest in the Savannah real estate market in 2019 and buy before prices become out of reach, you must read till the end. Savannah, Georgia is one of the oldest cities in the Southeastern U.S. It is generally considered a small historic town and the epitome of Southern charm but not much else.

However, this city has started to blossom in its own right. Savannah, Georgia is separated from South Carolina by the namesake Savannah River. This means the Savannah housing market includes quite a few people living in South Carolina. The Savannah real estate market includes roughly 350,000 people.

This makes it the third largest metropolitan area in Georgia. If you take the de facto suburbs on Carolina side, these small towns put half a million people in the larger Savannah metro area. Is Savannah going to be one of the hottest real estate markets for investors in 2019 & 2020? Let’s take a deep look at the latest Savannah housing market trends to come to a conclusion.

Savannah Real Estate Market Forecasts 2019 & 2020

The real estate data from Zillow shows that the median home value in Savannah is $136,400. Savannah home values have gone up 5.6% over the past year and their Savannah real estate market prediction is that the prices will rise 1.7% within the next year. The median list price per square foot in Savannah is $118, which is lower than the Savannah Metro average of $122.

The median price of homes currently listed in Savannah is $229,900 while the median price of homes that sold is $173,700. The median rent price in Savannah is $1,400, which is lower than the Savannah Metro median of $1,450.

Here is the Savannah, GA real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 3.9% till July 2020.

Savannah Housing Market Forecast 2019 – 2021

The Savannah housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The Accuracy of the Trend Prediction for Savannah is 84%. Accordingly, LittleBigHomes.com estimates that the probability for rising house prices in Savannah, GA is 84% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Savannah, Georgia Real Estate Market Forecast.

Savannah Real Estate Market Trends

On Trulia, the median sales price in Savannah is $225,500. Homes are selling for about $131/sqft. At present, Trulia has 2,191 resale and new homes for sale in Savannah, GA, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

There are 1,988 homes for sale in Savannah, GA on Realtor.com. 93 of which were newly listed within the last week. Additionally, there are 347 Savannah rentals for sale, with a range of $318 to $10K per month. As per Realtor.com, in July 2019, the Savannah housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.

In July 2019, the median list price of homes in Savannah, GA was $249K, trending up 6% year-over-year. The median listing price per square foot was $124. The median sale price was $228,000. On average, homes in Savannah, GA sell after 73 days on the market. The trend for median days on market in Savannah, GA has gone up since last month, and slightly down since last year.

The median list price in Savannah, GA is $269,950 on Movoto.com. The median list price in Savannah went down 1% from August to September. Savannah's home resale inventories is 78, which decreased 1 percent since August 2019. The median list price per square foot in Savannah is $133. August 2019 was $136. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in September.

Savannah, GA Single Family And Multi-Family Homes

Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

As per the real estate company called Neigborhoodscout.com, the median house price in Savanna, GA is $165,996, which indicates that home prices in Savannah are near the national average for all cities and towns in the United States. Single-family detached homes are the single most common housing type in Savannah, accounting for 57.08% of the city's housing units.

Three and four bedroom single-family detached homes are the most common housing units in Savannah housing market. Other types of housing that are prevalent in Savannah include large apartment complexes, duplexes, homes converted to apartments and a few row houses. The city has a mixture of owners and renters, with 40.40% owning and 59.60% renting.

Currently, there are 753 single family homes for sale in Savannah, GA on Zillow. Additionally, there are 188 single family homes for rent in Savannah, GA. Under potential listings, there are about 13 Foreclosed and 224 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Savannah, GA Foreclosures And Bank Owned Homes 2019

As per the Savannah foreclosure data by Zillow, the percent of delinquent mortgages in Savannah is 1.3%, which is higher than the national value of 1.1%.

With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Savannah homeowners underwater on their mortgage is 13.9%.

There are currently 92 properties in Savannah, GA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,468. In August 2019, the number of properties that received a foreclosure filing in Savannah, GA was 24% lower than the previous month and 51% lower than the same time last year.

Best Neighborhoods To Buy Savannah Rentals

If you are looking to buy Savannah rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Savannah rental real estate and you should be able flip it for a lump sum profit.

When looking to invest in Savannah real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Savannah investment property should be low. The neighborhoods in Savannah must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 34 elementary schools, 20 middle schools, 12 high schools and 35 private & charter schools. There are 103 neighborhoods in Savannah.

Some of the best neighborhoods in Savannah, Georgia are Wilmington Island, Georgetown and The Landings. South Historic District has a median listing price of $675K, making it the most expensive neighborhood. Windsor Forest is the most affordable neighborhood in Savannah, with a median listing price of $125,000.

Here are the best neighborhoods to invest in Savannah rentals because they have the highest appreciation rates (List by Neigborhoodscout.com).

Is Savannah a Good Place to Invest in Real Estate?

Now that you know where Savannah is, you probably want to know why we’re recommending it to real estate investors. Is it worth buying a house in Savannah, GA? Investing in real estate is touted as a great way to become wealthy. Should you invest in Savannah rental real estate?

Many real estate investors have asked themselves if buying a rental property in Savannah is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Savannah housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Savannah but we have collected ten evidence based positive things for those who are keen to invest in the Savannah rentals in 2019.

Investing in Savannah rentals will fetch you good returns in the long term as the home prices in Savannah have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Savannah real estate market which can help investors who are keen to buy an investment property in this city.

1. The Fast Population Growth

The Savannah housing market is one of the fastest growing ones in the state. It grew by nearly 20 percent between 2000 and 2010. That made it the fifth fastest growing metro area in Georgia. More importantly, growth has accelerated.

The city was the fastest growing metro area in Georgia according to statistics tracking growth between 2010 and 2016. It grew 11 percent in just six years. Part of the growth is the city’s rapidly expanding job market.

2. The Strong Job Market

Why are so many people moving to the Savannah housing market? One reason is the rapidly expanding Savannah port; it is handling a massive amount of cargo container traffic. The Savannah international airport attracts budget airlines that want to serve the southeastern U.S.

The city has long been an aerospace manufacturing center in addition to a paper and wood pulp manufacturing hub. It is also seeing massive domestic migration as people move to the city from surrounding small towns.

This is partially due to people moving closer to the diversified local economy and retirees who want to be close to healthcare providers. Savannah is the regional hub for healthcare and educational services. For example, there are three major hospitals in Savannah.

3. The Geographic Constraints

The Savannah real estate market has room to grow, but it is constrained by geography. The national parks on the Carolina border are off-limits to development.

The massive wetlands along the river and the coastline can’t be built on. This results in the city slowly growing inland and the price of properties along the water commanding a premium.

4. The Savannah Vacation Market

The Savannah real estate market has become a hot market for vacation properties. The city is within a two hour drive of beaches and golf courses at Hilton Head in South Carolina and St. Simons Island off Georgia. There are local golf courses and horse farms in the area. The climate is almost as warm as Florida, but property prices are much lower.

5. The Attractiveness to Millennials

The Savannah housing market is unusual in the sheer affordability it offers from the walkable historic district to the waterfront. This is an area where you can buy a historic home on a middle class income and afford a waterfront condo with great views for less than a million dollars.

Some of these properties are bought as future retirement homes, while others are attracting Millennials coming to work in the ports or aerospace. The Millennials coming here to work will likely have their families here, creating long term demand in the Savannah real estate market for single family homes.

6. The Generally Cheap Real Estate in Savannah

One point in favor of the Savannah real estate market is the generally cheap property prices at all levels of the market. The median home price in the Savannah housing market is roughly 135,000 dollars. Luxury homes cost between 400,000 and 800,000.

This means a luxury home in the Savannah housing market costs less than the average home in San Francisco or New York City. You could buy several Savannah real estate investment properties for half a million dollars, the median price of a home in a number of hotter markets.

This helps explain why the Savannah cost of living is 87.9 while the national average is 100, and thousands of people move here every year to enjoy that lower cost of living. In fact, the cost of living in Savannah is much lower than other Georgia metro areas.

For example, homes in the Savannah real estate market are 40,000 less than the Georgia state average and nearly 100,000 dollars below the national average. If you were looking for a Savannah real estate investment property to rent, rents are roughly 1400 dollars a month.

This is actually a better than average ROI on rental real estate. It also contributes to the relatively poor rankings Savannah receives in terms of housing costs relative to average income.

7. The Strong and Steady Real Estate Appreciation Rates in Savannah

The Savannah real estate market is seeing significant appreciation due to strong demand and slower growing inventory. Property prices increased more than five percent in 2019. Prices are projected to increase nearly two percent in 2020.

An interesting side effect of the second home market is how it bolsters property values, since many people buying vacation homes here plan on eventually retiring in them. This means you can sell homes to people who aren’t going to move into them immediately, and it prevents a decline in tourism from undermining property values overall.

8. The Landlord Friendly State

One point in favor of Savannah real estate investment is how landlord friendly the state is. You don’t have to provide receipts for rent or deposits. You don’t have to pay interest on deposits. There are reasonable limits on late fees.

There are no state laws on notice before entry. More importantly, you could potentially file a lawsuit to evict someone as soon as 48 hours after they failed to pay rent on a Savannah real estate investment property. The notice can be verbal. They’ll have to make payment within seven days or have to leave.

You can also begin evictions if someone fails to comply or correct an issue in violation of the lease such as having pets or criminal on the property. You can file a dispossessory warranty in this case. If the eviction goes to court, the Georgia courts almost always side with landlords.

9. The Low Income Taxes

If you compare states based on overall tax burden, South Carolina seems to win. This is deceptive for those considering Savannah real estate investment, since you really aren’t affected by alcohol and other “sin” taxes.

South Carolina may have a lower sales tax, but Georgia has lower income taxes. Better yet, the state has been working on lowering its income taxes. This results in an overall tax burden that’s around thirtieth in the country, somewhat below average.

10. The Low Property Taxes

Property tax rates hover around the national average. However, the roughly 1.1 percent property tax rate you’d pay on Savannah real estate investment results in a much lower than average property tax bill due to the state’s relatively cheap property.

As a Savannah real estate investment property owner, you wouldn’t be eligible for the generous deductions and exemptions that result in residents paying less than 0.9 percent on average.

Savannah Real Estate Investment

Maybe you have done a bit of real estate investing in Savannah, GA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.

A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Savannah real estate investment opportunity would be a key to your success. If you invest wisely in Savannah rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

The less expensive the Savannah rentals are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Savannah, you should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Savannah, GA. The Savannah area is evolving from a small town to a regional services hub with a diversified economy.

It is never going to be a booming metropolis like Atlanta, but that won’t prevent it from being a great real estate investment. In fact, many people are moving here for the ideal balance between the small-town feel and great amenities like a world-class hospital and international airport.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.

They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.

NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

The aim of this article was to educate investors who are keen to invest in Savannah real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2019

The other best place to invest in real estate is Knoxville, Tennessee. Forget Nashville and the lure of tourist rental income. Consider investing in an affordable, stable real estate market offering relatively high rates of return like the Knoxville real estate market.

The Knoxville real estate market has a larger than expected number of renters because of McGhee Tyson Air National Guard Base. The military base is home to thousands of service men and women. Those who choose to live off base have to rent, driving up rental rates and, indirectly, property values.

Several thousand more people flood into the area for national guard and reserve training or to attend officer school. Demand is so great that there are hotels right by the base to house them, though others rent houses or stay at other hotels in the Knoxville area.

Another sizzling market to choose for investment is Manhattan, NY. Manhattan offers incredibly dense housing, incentives for more of the same, and a large, loyal renting population. If you can afford to invest in the Manhattan real estate, it can be worth the effort.

The Manhattan housing market is famous for an average one bedroom apartment surpassing 3000 dollars a month in rent. However, you don’t have to have millions of dollars of cash on hand to consider Manhattan real estate investment.

There are cheaper properties in the boroughs, and they’ll command 1500 dollars a month in rent for a one bedroom and much more for a two bedroom or three bedroom apartment. And rents in the Manhattan housing market are going up at faster than the rate of inflation.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Appreciation
https://www.zillow.com/savannah-ga/home-values

Income taxes
https://finance.zacks.com/georgia-state-income-tax-vs-south-carolina-income-tax-7321.html

Property taxes
https://taxfoundation.org/state/georgia
https://smartasset.com/taxes/georgia-property-tax-calculator

Landlord friendly
https://www.avail.co/education/laws/georgia-landlord-tenant-law
http://www.landlordstation.com/blog/top-landlord-friendly-states
https://sparkrental.com/georgia-rental-laws-guide

Fast growth
https://en.wikipedia.org/wiki/Savannah_metropolitan_area
https://www.ajc.com/news/world/this-the-fastest-growing-city-georgia-report-says/nAwM8sM8FN8IS9O62FtjTL

Job market
https://www.ajot.com/premium/ajot-savannah-market-drawing-new-players-with-fastest-growing-u.s.-containerport
https://www.georgiatrend.com/2015/12/31/economy-savannah-soars
https://livability.com/top-10/families/best-affordable-places-to-live/2018/ga/savannah

Vacation market
https://www.usatoday.com/story/travel/destinations/2018/07/11/savannah-georgia-vacation-homes/761546002/

Cheap properties
https://www.bestplaces.net/cost_of_living/city/georgia/savannah
https://www.niche.com/places-to-live/savannah-chatham-ga

Market Prices, Trends & Forecasts
https://www.zillow.com/Savannah-ga/home-values
https://www.realtor.com/realestateandhomes-search/Savannah_GA/overview
https://www.movoto.com/savannah-ga/market-trends
https://www.neighborhoodscout.com/ga/savannah/real-estate
https://www.realtytrac.com/statsandtrends/ga/chatham-county/savannah

The post Savannah Housing Market: Prices, Trends, Forecast 2023 appeared first on Norada Real Estate Investments.

The internet has changed the way we live, work, and invest. One of the most significant shifts is the rise of digital real estate, which offers investors new opportunities and challenges. Digital real estate refers to the ownership or investment in online properties, such as websites, social media pages, domain names, and virtual real estate. In this blog, we'll explore what digital real estate is, how it works, and the opportunities and challenges it presents to investors.

How Does Digital Real Estate Work?

Digital real estate works similarly to traditional real estate investing. It involves buying, selling, and leasing virtual properties, such as websites, domain names, social media pages, and virtual real estate. Virtual real estate includes digital assets in online games and platforms such as Second Life, Decentraland, and The Sandbox.

Investors can generate income from digital real estate in several ways, such as advertising, affiliate marketing, and selling products, and services. The value of digital properties depends on various factors, such as website traffic, domain authority, social media followers, and virtual land demand.

Is Digital Real Estate Legit and a Good Investment?

Digital real estate is a legitimate investment, but it comes with risks and challenges. Just like traditional real estate, digital properties can increase in value over time, generating significant returns on investment. However, digital real estate investing requires knowledge and expertise in online marketing, website development, and social media management.

Navigating the digital real estate landscape can be challenging, especially for beginners. Some tips for buyers, sellers, and investors include conducting thorough research on the market and the property, seeking expert advice, and investing in valuable and relevant digital properties. Investors should also stay up to date with the latest trends and developments in the digital real estate industry.

There are several digital real estate investment opportunities available, such as investing in profitable websites, buying and selling domain names, investing in virtual land and properties, and investing in online businesses. Investors should choose opportunities that align with their interests, expertise, and financial goals.

How to Invest & Make Money From Digital Real Estate?

Digital real estate is a rapidly growing market that offers investors new opportunities to make money. With the rise of the internet and new technologies, people can now invest in a range of digital assets, from websites to virtual land. There are various ways to make money from digital real estate. One of the most popular methods is advertising revenue.

Website owners can generate income by placing ads on their sites using platforms such as Google AdSense, MediaVine, and AdThrive. They can also earn revenue through affiliate marketing, where they earn a commission for promoting products or services. Another way to make money from digital real estate is by selling products or services online. E-commerce websites, such as Amazon, Etsy, and Shopify, allow individuals to sell products to customers worldwide. Virtual real estate investors can also earn income by selling virtual land and properties in online games and platforms.

Building Websites and Blogs for Profit

Building a successful website or blog is one of the easiest ways to invest in digital real estate. By creating content that attracts a large audience, you can monetize your website through advertising, affiliate marketing, and sponsorships. You can also buy an established website or blog and grow it further to earn capital gains.

In fact, building websites and blogs for profit is one of the most popular ways to invest in digital real estate. This is because it is relatively easy to learn, and the potential return on investment can be high. Building a website or blog requires minimal investment upfront and can be done in your spare time. Once you have built a website or blog that attracts a significant audience, you can sell the website for more than you invested in it, earning a substantial capital gain.

Furthermore, websites and blogs can generate passive income through various means, including advertising, affiliate marketing, and sponsored content. By monetizing a blog or website, you can earn a steady stream of income without having to actively manage the site. This makes it an appealing investment option for those who are looking for a source of passive income.

Another advantage of building websites and blogs is the potential for long-term growth. Once a website or blog has gained a loyal following, the site's value can increase substantially. This can make it an attractive asset to potential buyers, who may be willing to pay a premium for a site with an established audience. In addition, building websites and blogs can be a fulfilling creative pursuit. It allows individuals to express their ideas and interests in a way that resonates with their audience. It can also provide opportunities for networking, collaboration, and personal growth.

Selling Digital Products

Selling digital products, such as eBooks, online courses, and software is another way to invest in digital real estate. By creating valuable and unique digital products, you can build a loyal following and generate revenue from your products. You can also sell your products on platforms like Amazon or Etsy to increase your reach and sales.

Renting Digital Real Estate

Just like you can rent out physical real estate, you can also rent out digital real estate. This includes renting out website space, selling digital ad space, or leasing virtual land in online worlds. By renting out your digital real estate, you can earn a regular cash flow while also benefiting from any capital appreciation.

Flipping Domain Names and NFTs

Flipping domain names and non-fungible tokens (NFTs) is another way to make money in digital real estate. By buying and selling domain names and NFTs at the right time, you can make a profit. However, this can be risky, and you need to know what you are doing to make a profit. NFTs, or non-fungible tokens, are another way to make money in the world of digital real estate.

Flipping domain names refer to buying a domain name at a lower price and then selling it later for a profit. This practice has become popular in recent years as more businesses look to establish a strong online presence. The key to successful domain flipping is to find domain names that are in high demand and can be easily branded by companies. Domain names that are short, memorable, and have a .com extension tend to be the most valuable.

NFTs are unique digital assets that are verified on a blockchain and cannot be duplicated, making them rare and valuable. They can be anything from digital artwork, music, videos, and even tweets. NFTs are becoming increasingly popular as more people and businesses embrace digital ownership. In March 2021, a digital artwork by Beeple sold for a whopping $69 million at a Christie's auction, making it the most expensive NFT ever sold.

Some investors are buying and holding NFTs for their potential appreciation in value, while others are using them as a way to monetize their own digital creations. For example, musicians can create NFTs of their music and sell them to fans as a way to monetize their work and reward their most dedicated followers.

Investing in NFTs can be risky, as the value of these assets can be volatile and unpredictable. However, for those who are interested in the potential rewards, NFTs can be an exciting and profitable way to invest in digital real estate.

Investing in Cryptocurrency

Investing in cryptocurrency is a popular way to invest in digital real estate. Cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin, are decentralized digital currencies that operate independently of a central bank. Unlike traditional currencies, which are backed by government-issued guarantees, cryptocurrencies are based on complex algorithms and cryptography.

One of the reasons why investing in cryptocurrency is attractive to investors is that it can offer higher returns than traditional investments. For example, In 2021, Bitcoin's value grew from $29,374.15 on 1 January to $46,306.45 on 31 December, managing to surpass the $60,000 mark twice, most notably when it reached its all-time high of $68,789.63 on 10 November that year.

However, it is important to note that cryptocurrency can also be highly volatile, and its value can fluctuate significantly in a short period of time. As of 2 March 2023, Bitcoin (BTC) has witnessed a significant rise, settling above $20,000, and showing a gain of nearly 40% since the beginning of the year. This increase in value has occurred amidst the expected slowing down of interest rate hikes by the US Federal Reserve (Fed).

To invest in cryptocurrency, you need to open an account with a cryptocurrency exchange. These exchanges allow you to buy and sell cryptocurrencies using fiat currencies or other cryptocurrencies. Some popular cryptocurrency exchanges include Coinbase, Binance, and Kraken. Another way to invest in cryptocurrency is through a cryptocurrency mutual fund or ETF. These funds allow you to invest in a diversified portfolio of cryptocurrencies, reducing your risk exposure to a single cryptocurrency.

It is important to note that investing in cryptocurrency comes with risks, including the potential for fraud and hacking. You should only invest money that you can afford to lose and always do your research before investing in any cryptocurrency. It is also important to stay up-to-date on the latest cryptocurrency news and trends, as this can have a significant impact on the value of your investment.

Virtual Real Estate in the Metaverse

Virtual real estate in the metaverse is a concept that has gained significant attention and investment in recent years. The metaverse is a virtual space that allows users to interact with each other and their surroundings through virtual reality. In this digital world, users can own virtual properties, which can be used for various purposes such as gaming, socializing, or conducting business.

Decentraland is one of the most popular metaverse platforms for investing in virtual real estate. Users can buy and own virtual land called LAND, which they can then develop, build on, and monetize. Investors can make a profit by selling their LAND or by developing it into something valuable, such as a virtual store or amusement park, and earning revenue from it.

Another metaverse platform that has gained significant attention is Sandbox, where users can purchase virtual land and develop it into various forms of entertainment, such as games, museums, and concerts. The platform has attracted significant investment from venture capitalists and celebrities, with several high-profile partnerships announced.

Investing in virtual real estate in the metaverse can provide several advantages over physical real estate. The cost of entry is much lower than traditional real estate, and there is less regulatory red tape to navigate. Additionally, virtual properties can be developed and monetized much faster than physical properties, allowing for quicker returns on investment.

The value of the virtual real estate in the metaverse is determined by supply and demand, much like physical real estate. As more users join the metaverse and demand for virtual properties increases, the value of the virtual real estate is likely to increase as well. However, like any investment, there are risks involved, such as the possibility of the metaverse platform failing to gain traction or losing popularity.

Tokenized Real Estate

Tokenized real estate refers to the practice of creating digital tokens that represent ownership or investment in a physical property. These tokens are often built on a blockchain, which provides a transparent and secure way to track ownership and transfer the tokens.

Tokenizing real estate allows investors to buy and hold fractional ownership in a property, without the need to purchase the entire property or deal with the traditional complexities and costs of real estate ownership. This can make real estate investment more accessible to a wider range of investors, including those who may not have the capital to purchase a property outright.

Companies and platforms that are exploring the idea of tokenized real estate typically purchase properties, then divide ownership of the properties into digital tokens that can be purchased and held by investors. These tokens can be traded on digital marketplaces or platforms, allowing investors to buy and sell fractional ownership of the property.

One example of a platform that offers tokenized real estate investments is RealT. RealT allows investors to purchase digital tokens that represent ownership in physical properties located in the United States. The platform uses blockchain technology to ensure that ownership is transparent and secure, and investors can receive regular distributions based on the rental income generated by the property.

Benefits of Digital Real Estate: Efficiency, Cost Savings, and Convenience

Investing in digital real estate offers several benefits, including lower transaction costs, greater flexibility, and easier access to a global market. With digital real estate, you can invest from anywhere, at any time, and with any amount of capital. Investors can manage their properties from anywhere in the world, reducing overhead costs such as rent, utilities, and staff. They can also automate processes such as online payments, customer service, and inventory management, increasing efficiency and saving time.

Blockchain technology is revolutionizing the way we conduct real estate transactions. Blockchain is a decentralized, digital ledger that allows secure and transparent transactions without the need for intermediaries such as banks or lawyers. Blockchain technology offers several benefits, such as faster transaction times, lower fees, and increased security and transparency.

Challenges and Limitations of Digital Real Estate: Addressing Issues of Access, Equity, and Trust

While digital real estate offers many benefits, it also presents challenges and limitations that need to be addressed. One of the main challenges is ensuring equitable access to digital real estate opportunities. Not everyone has access to the technology or resources needed to invest in digital real estate, and this could lead to a digital divide in the real estate market.

Another challenge is building trust in digital real estate transactions. These include the potential for fraud, hacking, and cyber-attacks, as well as the lack of regulation and oversight. It's important to do your research and understand the risks involved before investing in digital real estate.

To overcome these challenges, policymakers and industry leaders must work together to ensure that digital real estate opportunities are accessible to all, regardless of their socioeconomic status. This could involve providing training and resources to help people learn about digital real estate and how to invest in it. It could also involve implementing regulations and standards to ensure the safety and security of digital real estate transactions.

In conclusion, the rise of digital real estate is transforming the real estate industry, creating new opportunities for investors, buyers, and sellers alike. From blockchain technology to virtual property tours, digital real estate offers many benefits, including efficiency, cost savings, and convenience. However, it also presents challenges that need to be addressed, such as access, equity, and trust. By working together, industry leaders and policymakers can ensure that digital real estate is a safe and accessible investment opportunity for all.

The post What is Digital Real Estate and How to Invest in it? appeared first on Norada Real Estate Investments.

Housing Shortage in the U.S.

The United States is facing a housing shortage, and it is affecting millions of Americans. The demand for housing has increased dramatically in recent years due to factors such as population growth, a strong economy, and low-interest rates. However, the supply of new homes has not kept up with the demand, resulting in a housing shortage. This has led to rising housing costs, increased homelessness, and other social and economic problems.

The housing shortage is a complex issue that affects different groups of people in different ways. Renters, home buyers, and low-income families are among the most affected by the shortage. For renters, the shortage has led to rising rents and increased competition for affordable housing. For home buyers, the shortage has made it harder to find a home and has driven up home prices in many areas. Low-income families are especially vulnerable to the effects of the housing shortage, as they are often unable to afford rising rents or the high cost of homeownership.

The shortage of affordable housing has also become a significant issue. The rising housing costs have made it increasingly difficult for many people to find affordable housing, which has led to an increase in homelessness and other social problems. Finding solutions to the housing shortage and the lack of affordable housing has become a top priority for policymakers, housing advocates, and community leaders across the country.

In this article, we will explore the housing shortage in the US, including its causes, effects, and potential solutions. We will also look at the challenges of finding affordable housing in the current market and the policies that are being proposed to address the issue. Finally, we will provide an outlook on the future of the housing shortage in the US, including potential trends and projections.

Causes of Housing Shortage in the US

The housing shortage in the United States is a complex issue that has been building up for decades. There are several reasons behind the shortage, ranging from demographic shifts to regulatory barriers. One of the primary causes of the housing shortage is the lack of new construction. According to the National Association of Realtors, the United States is currently experiencing a housing shortage of between 5.5 and 6.8 million units, with the gap between supply and demand widening every year. This shortage is partly due to a decline in new construction, which has failed to keep pace with population growth and demand for housing.

Another significant factor contributing to the housing shortage is the rising cost of construction materials, including lumber, steel, and concrete. The COVID-19 pandemic has disrupted global supply chains and caused shortages of raw materials, driving up costs and delaying construction projects. In addition, tariffs on imported materials have increased costs for builders, making it more challenging to construct affordable housing.

Regulatory barriers also play a role in the housing shortage. Many local and state regulations, such as zoning laws and building codes, can drive up the cost of new construction and limit the supply of affordable housing. For example, minimum lot sizes and setback requirements can increase the cost of land and reduce the number of units that can be built on a given parcel. Similarly, building codes can add significant costs to new construction projects, making it more challenging to build affordable housing.

Impact of Housing Shortage on Society

The housing shortage in the United States has significant consequences for individuals, families, and communities. One of the most obvious impacts is the rising cost of housing, which has made it difficult for many Americans to find affordable homes. According to the National Low Income Housing Coalition, there is a shortage of 7.2 million affordable and available rental homes for extremely low-income renters, defined as households earning less than 30% of the area median income. This shortage has contributed to a rise in homelessness, particularly in urban areas.

The housing shortage also has economic consequences. The lack of affordable housing makes it more difficult for businesses to attract and retain workers, particularly in high-cost areas like California and New York. This can limit economic growth and harm productivity. In addition, the high cost of housing can leave families with less disposable income, limiting their ability to spend on other goods and services.

The housing shortage also has social consequences. Housing instability can lead to poor health outcomes, including increased rates of mental health issues and chronic illnesses. It can also exacerbate existing inequalities, particularly for low-income and minority households. For example, Black and Hispanic households are more likely to experience housing insecurity than white households, with Black households experiencing the highest rates of homelessness.

In conclusion, the housing shortage in the United States is a complex and multifaceted issue that requires a comprehensive approach to address. From increasing new construction to reforming regulatory barriers, policymakers and advocates must work together to ensure that all Americans have access to safe, affordable housing.

Effects of the Housing Shortage

The housing shortage in the US has had a significant impact on various groups of people. Renters have been hit particularly hard, with a shortage of available rental units leading to rising rents and increased competition for housing [6]. This has made it difficult for low-income families to find affordable housing, leading to housing insecurity and potential homelessness [7]. Homebuyers have also been affected, as the lack of inventory has led to increased competition and rising home prices [8]. Additionally, the shortage of affordable housing has contributed to a widening wealth gap, as low-income families are unable to afford housing in desirable areas with good job prospects [9].

Affordable Housing

The shortage of affordable housing in the US has become a major challenge for many Americans. Rising home prices, stagnant wages, and a lack of affordable housing options have made it difficult for low-income families to find housing that meets their needs [10]. According to a report by the National Low Income Housing Coalition, there is a shortage of more than 7 million affordable and available rental homes for extremely low-income renters in the US. This shortage has led to an increase in homelessness and housing insecurity, particularly among vulnerable populations such as seniors, veterans, and families with children.

Policy Solutions for Housing Shortage

Addressing the housing shortage will require a multi-faceted approach that involves a range of policy solutions. Increasing funding for affordable housing programs, such as the Housing Choice Voucher program and Low-Income Home Energy Assistance Program, can help to provide more affordable housing options for low-income families. Relaxing zoning regulations and incentivizing developers to build more housing, particularly in high-demand areas, can help to increase the supply of housing and reduce housing costs. Additionally, programs that provide down payment assistance and other forms of financial support to first-time homebuyers can help to increase access to homeownership for low- and moderate-income families.

Future Outlook

The future of the housing shortage in the US is uncertain, and projections vary depending on a range of factors, such as population growth, economic trends, and policy decisions. However, it is clear that addressing the shortage of affordable housing will require a concerted effort from policymakers, developers, and advocates. With a growing awareness of the importance of affordable housing and the impact of the housing shortage on vulnerable populations, there is hope that the US can move towards a more equitable and sustainable housing system in the coming years.

Sources:

• https://www.nar.realtor/research-and-statistics/housing-statistics/americas-housing-crisis
• https://reports.nlihc.org/gap
• https://www.cbpp.org/research/housing/federal-rental-assistance
• https://www.hud.gov/program_offices/comm_planning/affordablehousing/library/first-time_homebuyer_programs

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What is a Rental Property Insurance?

Rental property insurance is a type of insurance policy designed to protect property owners who rent out their properties to tenants. It provides coverage for damages or losses to the rental property caused by certain perils, such as fire, theft, vandalism, and natural disasters. Additionally, rental property insurance can provide liability coverage, which protects landlords from legal claims and lawsuits brought by tenants or other third parties who suffer injuries or property damage while on the rental property.

The coverage provided by rental property insurance typically includes the physical structure of the rental property, as well as any personal property that is owned by the landlord and kept on the property for tenant use, such as appliances, furniture, and fixtures. Some rental property insurance policies may also cover lost rental income if the property becomes uninhabitable due to a covered loss.

It's important to note that rental property insurance is different from renters insurance, which is designed to protect the personal property of tenants rather than the property itself. If you own a rental property, it's important to consider purchasing rental property insurance to protect your investment and financial interests.

Understanding Rental Insurance Coverage Options

Rental property insurance is essential for landlords who want to protect their investments from unexpected losses and liabilities. There are several types of coverage available with rental property insurance, each of which is designed to provide protection for different risks that landlords may face.

One of the most important types of coverage is property damage. This coverage helps landlords pay for repairs or replacement of their rental property if it is damaged by a covered event, such as a fire, storm, or vandalism. This coverage is essential for landlords because repairs to rental properties can be expensive, and damage can lead to lost rental income [1].

Another important type of coverage is liability insurance. This coverage helps landlords pay for legal fees and damages if a tenant or visitor is injured on their property. Liability insurance can also cover damages caused by a tenant’s actions, such as if they accidentally start a fire. Without liability insurance, landlords could be personally responsible for these costs, which could be financially devastating [2].

Finally, rental property insurance can also include coverage for lost rental income. This coverage provides landlords with compensation if their rental property is uninhabitable due to a covered event, such as a fire or flood. This coverage can help landlords pay their mortgage and other expenses while repairs are being made [1].

It is important for landlords to understand which types of coverage are included in their rental property insurance policy and which types of coverage may be necessary to add. Depending on the specific risks that a landlord faces, additional coverage may be required to fully protect their investment.

Choosing the right rental property insurance policy can be challenging, especially for first-time landlords. There are many factors to consider, including the size and type of property, location, budget, and specific risks that need to be covered. Here are some tips for choosing the best rental property insurance policy:

1. Understand the coverage options: As discussed in the previous section, there are several types of coverage available with rental property insurance. It is important to understand what is included in a policy and which types of coverage may be necessary to add based on the specific risks a landlord faces.
2. Shop around: It is important to compare policies and prices from several different insurance companies before choosing a policy. This can help landlords find the best coverage for their budget and specific needs.
3. Consider the deductible: The deductible is the amount that a landlord must pay out of pocket before insurance coverage kicks in. A higher deductible will generally result in a lower monthly premium, but it may also mean higher out-of-pocket costs in the event of a claim.
4. Look for discounts: Some insurance companies offer discounts for landlords who have multiple properties, have installed safety features in their rental properties, or have a good claims history. It is important to ask about discounts when shopping for insurance.
5. Work with an insurance agent: An experienced insurance agent can help landlords understand their options and choose the best policy for their needs. They can also provide guidance on how to reduce risks and prevent claims.

How to Choose the Right Insurance for Your Rental Property?

The number one goal of your rental business should be to make money, not give it away.  One way to protect you and your investment is to have proper insurance in place. Let me introduce you to four insurances that you should consider.

A Good Lease

The first insurance that I possess is the insurance of a good lease and a thorough move-in inspection. More than once I have referred to the pictures of a move-in inspection to counter a tenant's claim about a pre-existing condition. I remember one time during a preliminary move-out inspection I noted a cracked ceramic floor tile. The tenant claimed that it was like that when they moved in.

I turned on my laptop, pulled up the appropriate picture from the move-in inspection, and proved to the tenant that the crack was not there when they moved in. The next insurance that I possess is the kind purchased from my friendly neighborhood insurance professional. However, take note that there is more to consider than just regular old homeowner's insurance. There are several kinds of insurance that you want to consider as a landlord.

Property Insurance

When it comes to insuring my personal rental properties, I have a landlord policy on each rental unit that I own, whether that unit is paid off or not. Landlord policies have the added benefit of additional liability protection for the landlord. You also need to ensure that each policy carries sufficient coverage to satisfy your mortgage lender.

Depending upon your rental's geographic location, there are some additional property insurance policies you may want to consider. In California, many people have earthquake insurance. In other areas, you may want to investigate flood insurance. Your insurance professional can educate you on the particular hazards you might wish to insure against for your area.

Umbrella Insurance

The third insurance that I have is an umbrella policy, which acts like an umbrella over all of my other existing insurance policies. Examples of when this coverage may come into play include when a guest of your tenant slips and falls in one of your rental properties and is severely injured, or when a storm occurs and a neighbor's property is damaged by a tree falling from your property.

Your landlord insurance policy has a liability limit. The umbrella policy picks up after those limits are exhausted and therefore usually carries a very high deductible, $300,000 or higher. Those deductibles seem high until you are sued for $750,000 and lose. In this example, the first $300,000 would be picked up by your primary insurance; the balance of $450,000 would be yours to pay. An umbrella policy helps pay that off. Otherwise, virtually everything you own would be a fair game against that judgment.

Renter's Insurance

The fourth insurance is renter's insurance. Remind your tenants that their personal property and vehicles, or those of their guests, are not covered by any of your insurance policies against loss or damage due to fire, theft, vandalism, rain, water, criminal or negligent acts of others, or any other cause. Coverage for those items comes only through a renter's insurance policy.

Renters' insurance traditionally covers the tenant's and any guest's possessions, like furniture, clothes, computers, and bikes. Additionally, if a plumbing backup floods your property and renders it uninhabitable, the renter's insurance may cover the cost of a temporary place to live until the tenant can move back into your property. Some renter's insurance policies may also have protection for the tenant against lawsuits.

You should always require renter's insurance when the tenant has a pet in the residence. You do not want the tenant's dog biting a neighboring kid and then have the neighbor sue you. At my office, we will not allow tenants to receive keys without proof of a paid-in-full renter's insurance policy. If the tenant does not have a policy at the time of lease signing, we make the tenant call an insurer and obtain one on the spot.

Insurance is all about risk management; you buy or require insurance to manage some of those risks. Knowing your real estate laws is the best defense. After that, obtaining the insurance discussed in this article is an intelligent way to begin managing your risk. By following these tips, landlords can find the best rental property insurance policy to protect their investment and provide peace of mind.

The post Rental Property Insurance: Protect Your Investment Today appeared first on Norada Real Estate Investments.

If you’ve heard of Myrtle Beach, it may be because you’ve visited there or heard it described as a cheap, family-friendly version of Florida’s many vacation destinations. However, there are many points in favor of Myrtle Beach, whether you’re a tourist or a real estate investor. In this article, our focus will be on the Myrtle Beach real estate market and investment opportunities in 2020.

Myrtle Beach, South Carolina is home to around 35,000 people. However, the Myrtle Beach real estate market is much larger than this. Myrtle Beach is located in the middle of a long stretch of beachfront called “The Strand”. This broader area is home to nearly a half a million people.

If you are considering buying or investing in Myrtle Beach properties, you will certainly want to do plenty of research in advance. The more information you can have about the Myrtle Beach real estate market, the better off you will ultimately be.

Is Myrtle Beach going to be one of the best markets for real estate investing in 2020? Let’s take a deep look at the latest Myrtle Beach housing market trends to come to a conclusion.

Myrtle Beach Real Estate Forecast 2020

The real estate data from Zillow shows that the current median home value in Myrtle Beach is $156,300. Currently, the Myrtle Beach is a seller’s market. The home prices have risen by 6.5% over the last year. And looking forward into the coming year, the Myrtle Beach real estate market forecast is that home prices will continue to rise by 3.8%.

Here is the Myrtle Beach, SC real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 3.8% till Oct 2020.

The median list price per square foot in Myrtle Beach is $175, which is higher than the Myrtle Beach-Conway-North Myrtle Beach Metro average of $137. The median price of current listings in Myrtle Beach is $189,900 and the median price of homes that have been sold is $144,600.

Zillow reports that 14.2% of the listings in Myrtle Beach had a price cut in Oct 2019, which is a good thing for buyers. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices. The median rent price in Myrtle Beach is $1,100, which is lower than the Myrtle Beach-Conway-North Myrtle Beach Metro median of $1,300.

Myrtle Beach Housing Market Forecast 2019 – 2021

Here is a short and crisp Myrtle Beach housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Myrtle Beach is 82% and it is predicting a positive trend.

The LittleBigHomes.com estimates that the probability for rising home prices in Myrtle Beach is 82% during this period. If this price forecast is correct, the Myrtle Beach home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Myrtle Beach, SC Real Estate Market Forecast.

Myrtle Beach Real Estate Market Trends

We shall now discuss some of the most recent housing trends in the Myrtle Beach area. Trulia currently has 4,212 resale and new homes for sale in Myrtle Beach, SC including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

The median sales price in Myrtle Beach is $165,000 and homes are selling for about $132/sqft.

Some of the most popular neighborhoods in Myrtle Beach are Ocean Forest, Plantation Point, Myrtle Ridge, Owens and Konig. Here you’ll find the maximum no. of homes for sale and rent.

In the past month, 452 homes have been sold in Myrtle Beach, SC as reported by Redfin.com. In addition to houses in Myrtle Beach, there were also 1572 condos, 166 townhouses, and 6 multi-family units for sale in Myrtle Beach last month. The median price per square foot in Myrtle Beach has increased by 13.8% over the past year.

As per their real estate data, the Myrtle Beach housing market is not very competitive. Homes in Myrtle Beach receive 1 offers on average and sell in around 97 days. The average sale price of a home in Myrtle Beach was $195K last month, up 4.0% since last year. The average sale price per square foot in Myrtle Beach is $132, up 13.8% since last year. A hot listing in Myrtle Beach can sell for around list price and go pending in around 53 days.

Here is the latest Myrtle Beach, SC housing market data for the month of Nov 2019 from Redfin.com.

There are 4,712 homes for sale in Myrtle Beach, SC on Realtor.com. The new listed homes for sale are 214. The asking price of single family homes can start from $85,000 and can go up to $3.9M for a luxury property in the most expensive neighborhood in the city of Myrtle Beach, South Carolina.

There are currently 243 rental properties available in Myrtle Beach, and their rent prices range from $460 to $75K per month. You can find a lot affordable apartments for rent located just three miles from the campus of Coastal Carolina – Mainly good student community.

A furnished studio can be rented for about $660/mo in the South Myrtle Beach neighborhood in the city of Myrtle Beach, SC. The median rent in Myrtle Beach is $1,290. There are 1106 new construction homes for sale in Myrtle Beach within a price range of $159,000 to $2.7M.

According to their statistics, in November 2019, the Myrtle Beach housing market was a buyer’s market, which means there were roughly more active homes for sale than there were buyers.

It is interesting to note that in spite of less no. of sales, the prices did not drop to a large extent. On an average, sellers could sold homes for 96.34% of the asking price. A seller would always prefer scenarios which can yield a ratio of 100% or higher.

Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90%. In Myrtle Beach, the sellers have held good leverage in these negotiations in the past month.

In November 2019, the median list price of homes in Myrtle Beach, SC was $189K, flat year-over-year. The median listing price per square foot was $149. The median sale price was $163.5K. On average, homes in Myrtle Beach, SC sell after 92 days on the market. The trend for median days on market in Myrtle Beach, SC has gone up since last month, and slightly down since last year.

The median list price in Myrtle Beach, SC is $236,900 on Movoto.com. The median list price in Myrtle Beach was less than 1% change from November to December. Myrtle Beach's home resale inventories is 3,346, which decreased 1 percent since November 2019.

The median list price per square foot in Myrtle Beach is $217. In November 2019 it was $217. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in December.

Myrtle Beach, SC Single & Multi-Family Homes Statistics

Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.

The average sales price of new homes sold in the U.S. fell by 1.6% year-over-year in July 2019, to $388,000, according to the U.S. Census Bureau. In fact, the median sales price of new homes sold fell by 4.8% to $312,800 over the same period.

For existing homes, the median price was up by 4.3% to $280,800 in July 2019 from a year earlier, according to the National Association of Realtors. July’s price increase marks the 89th consecutive month of year-over-year gains. Demand remains robust. During the year to July 2019, new and existing home sales increased by 4.3% and 2.5%, respectively.

As per the real estate company called Neigborhoodscout.com, the median house price in Myrtle Beach, SC is $216,465, which indicates that home prices in Myrtle Beach are well above the national average for all cities and towns in the United States.

Large apartment complexes homes are the single most common housing type in Myrtle Beach, accounting for 48.23% of the city’s housing units. One or two bedroom apartments are the most common housing units in Myrtle Beach. Other types of housing that are prevalent in Myrtle Beach include single-family detached, duplexes, homes converted to apartments and a few row houses. Myrtle Beach has a mixture of owner-occupied and renter-occupied housing.

After the great recession of 2008, renting a home has increased exponentially across the nation. There are currently over 136.57 million housing units in the U.S. In 2018, the total number of homeowner households hit an all-time high of 76.2 million. 36.6% of households rent their homes and 64.4% buy their homes (2018 U.S. Census Bureau).

Currently, there are 458 single family homes for sale in Myrtle Beach, SC on Zillow. Additionally, there are 28 single family homes for rent in Myrtle Beach, SC. Under potential listings, there are about 1 Foreclosed and 74 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Myrtle Beach, SC Foreclosures And Bank Owned Homes Statistics

As per the Myrtle Beach foreclosure data by Zillow, the percent of delinquent mortgages in Myrtle Beach is 0.6%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Myrtle Beach homeowners underwater on their mortgage is 14.4%.

There are currently 226 properties in Myrtle Beach, SC that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,902.

In October 2019, the number of properties that received a foreclosure filing in Myrtle Beach, SC was 11% lower than the previous month and 240% higher than the same time last year.

Best Neighborhoods to Invest in Myrtle Beach Real Estate

If you are looking to invest in the Myrtle Beach real estate, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability.

Desirability brings demand. Demand would raise the price of your Myrtle Beach rental real estate and you should be able flip it for a lump sum profit. When looking to invest in Myrtle Beach real estate, you need to find places where the expected property appreciation forecast is positive.

The running costs for owning and managing an Myrtle Beach rental property should be low. The neighborhoods in Myrtle Beach must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.

Myrtle Beach is a minimally walkable city in Horry County. There are 15 elementary schools, 10 middle schools, 7 high schools and 9 private & charter schools. There are 22 neighborhoods in Myrtle Beach.

Some of the best neighborhoods in Myrtle Beach, South Carolina are South Myrtle Beach, Arcadian Shores, River Oaks Golf Plantation, Waterway Palms Plantation, Carolina Forest, Myrtle Beach, Southgate at Carolina Forest, The Bluffs on the Waterway, Myrtle Pointe, Dunes of Myrtle Beach, Market Commons, Myrtle Beach Boardwalk, Covington Lake, Arrowhead, Myrtlewood, Forestbrook, Grande Dunes, and Seagate Village.

The Dunes has a median listing price of $919.5K, making it the most expensive neighborhood. Island Green is the most affordable neighborhood in Myrtle Beach, with a median listing price of $94.5K.

Here are the best neighborhoods to invest in Myrtle Beach real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).

How is Real Estate Investing in Myrtle Beach?

Now that you know where Myrtle Beach is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should you invest in Myrtle Beach real estate?

If you want to find out whether Myrtle Beach real estate is a good investment or not, you need to drill deeper into local trends. The Myrtle Beach real estate trends will tell what the market holds for the year 2020. We have already discussed the Myrtle Beach housing market forecast for 2020.

Although, this article alone is not a comprehensive source to make a final investment decision for Myrtle Beach but we have collected ten evidence based positive things for those who are keen to invest in the Myrtle Beach real estate. Investing in Myrtle Beach rental properties will fetch you good returns in the long term as the home prices in Myrtle Beach have been trending up year-over-year.

Let’s take a look at the number of positive things going on in the Myrtle Beach real estate market which can help investors who are keen to buy an investment property in this city. We’ll focus on real reasons to invest in the Myrtle Beach real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.

1. The Affordable Myrtle Beach Real Estate

The Myrtle Beach real estate market is affordable by South Carolina standards. The median home price for the state is just over 170,000 dollars. The average price of a home in the Myrtle Beach housing market is 156,000 dollars as of 2019.

Another point in favor of Myrtle Beach real estate investment is that it is a relative bargain for locals. Myrtle Beach is one of the cheaper suburbs in the Myrtle Beach-Conway-North Myrtle Beach metro area. The average home in this area is roughly 200,000 dollars.

2. The Impact of Geography

The Myrtle Beach real estate market is literally constrained. The Atlantic Ocean is to the east. Waccamaw National Wildlife Refuge and a number of other state parks and wilderness areas bound the city’s western side. This prevents the city from expanding much except along the various highways.

3. The Strong ROI on Myrtle Beach Investment Properties

The average rent on an apartment in the Myrtle Beach housing market was 1100 dollars a month. A single bedroom apartment nets nearly 900 dollars a month. Two and three bedroom homes are the most common type of properties in the Myrtle Beach real estate market.

This means you could easily charge 1400 dollars a month or more for a rented out single family home. What about rentals to tourism? The rental income on these properties ranges from 20-40,000 dollars a year, depending on how desirable it is and the occupancy rate you can get over the busy summer season.

4. The Slow and Steady Real Estate Appreciation

The Myrtle Beach housing market is seeing slow, steady appreciation. Home prices grew 6.5 percent in 2019. They are projected to rise nearly 4 percent in 2020. This is slightly below the South Carolina state average. The state itself saw an average 5.5 percent appreciation in 2019 and is expected to see nearly 4 percent appreciation in 2020.

However, this means that the Myrtle Beach real estate market could appreciate much faster and still not be considered overheated. And unlike many other coastal areas, the value of a Myrtle Beach real estate investment property won’t crater because of a market correction.

5. The Low Tax Rate

South Carolina has a lower than average tax burden. The average state and local tax burden is eighth lowest out of the fifty states. The state has a modest income tax rate. If you’re considering Myrtle Beach real estate investment, know that the state is near the bottom in terms of property taxes. The average home has a roughly 0.5 percent property tax bill. For comparison, the average property tax rate nationwide is 1.1 percent.

6. The Cheap Property Insurance

If you’re considering investing in beachfront property in the Southeastern United States, the first place most people think of is Florida. The state on the whole has high property prices, but this may be offset by the potential tourism income. However, the cost of maintaining the property is high, and this is partially due to the fact that Florida has some of the highest insurance rates in the country.

In contrast, South Carolina’s property insurance rates are in line with the national average. If a hurricane hits Florida, at worst, your Myrtle Beach real estate investment property is exposed to heavy winds and rains several days later. However, the Myrtle Beach housing market is rarely hit directly by hurricanes.

Coastal flooding can be an issue, but you can mitigate that by not buying property directly on the water or high enough above the short that ten foot waves won’t destroy it.

7. The Favorable Legal Climate

South Carolina is, on the whole, landlord friendly. State law doesn’t limit security deposits. It must be returned within 30 days. The state does limit how much you can charge for late fees. The state doesn’t have notice of entry laws. Severe lease violations like drug arrests can be used to terminate the lease within two weeks. There is no notification period required to raise the rental rate.

8. The Grey Wave

Baby Boomers are retiring en mass. While many choose to relocate to Florida, others are choosing to move to more affordable areas. South Carolina offers an equally hospitable climate with a lower risk of hurricanes and more moderate summers.

Myrtle Beach isn’t at the top of the list of cities seeing an influx of retirees, but it is primed to benefit from this trend. After all, where else can you enjoy South Carolina’s low taxes and great weather as well as affordable beachfront real estate? Then there’s the fact that the state doesn’t tax Social Security benefits at all.

9. The Tourism Market

One reason to consider Myrtle Beach real estate investment is the tourism market. The area is known for its white sandy beaches and many world-class golf courses; there are 90 full golf courses in the area. There are campgrounds and family-friendly resorts. This is why Myrtle Beach is one of the tourism hotspots in the state. And it is growing.

The area generated about 22 billion in tourism dollars in 2018, and 2019 saw 1.4 billion dollars more in tourism revenue from the roughly 14 million visitors. That’s nearly 5 percent growth year over year. And Myrtle Beach allows for investment properties to be rented out to these visitors on a short term basis provided you pay the appropriate hotel taxes.

Furthermore, we can expect many of these repeat visitors to decide to retire here, propping up the Myrtle Beach housing market long-term. Just look at Hilton Head and how retirees already make up a third of their population.

10. The Overall Quality of Life

One point in favor of the Myrtle Beach real estate market is the overall quality of life. North Myrtle Beach’s schools were rated B+. Hilton Head’s schools are an A-, though far fewer people can afford to live there. The entire area gets an A in terms of quality of life and amenities for retirees. This bolsters the value of homes in the Myrtle Beach housing market.

Investing in Myrtle Beach Real Estate: The Conclusion

Maybe you have done a bit of real estate investing in Myrtle Beach but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.

The Myrtle Beach housing market offers affordable real estate, decent rates of return, a steady housing market and the opportunity for tourism revenue. It is amenable to property owners, and it is primed for long-term growth.

A good cash flow from Myrtle Beach investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Myrtle Beach real estate investment opportunity would be a key to your success. If you invest wisely in Myrtle Beach rental real estate, you could secure your future.

If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. Most investors naturally gravitate to residential property investment.

When looking for the best real estate investments in Myrtle Beach you should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing locally in the Myrtle Beach real estate market.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.

They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.

NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

The aim of this article was to educate investors who are keen to invest in Myrtle Beach real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2020

Another good market to choose for real estate investment is Winston-Salem, NC. The Winston-Salem metro area offers a steady, slowly appreciating real estate market poised for long-term growth. Combine this with a tax and legal climate friendly to investors, and it is worth considering.

The strong local economy is a good reason to consider Winston-Salem real estate investment. The local economy is seeing 1.6 percent job growth per year. It will have better than average job growth for the next ten years. This is one reason why people are moving to the Winston-Salem housing market. More importantly, because the city’s economy isn’t tied to a tech bubble or government growth, it won’t suffer a collapse if one industry busts, either.

The other best place to invest in real estate is Redding, CA. Redding is a stable, semi-rural area that enjoys slow, steady growth. For investors, it provides an opportunity to profit from one of the most hospitable rental markets in the state. One point in favor of the Redding real estate market is that it has relatively high rental rates.

The average apartment rents for around 900 dollars a month. A single family home in the Redding housing market easily rents for over 1100 dollars a month. For a large three or four bedroom home, you could charge 1500 dollars a month or more. The modest tourism market raises the possibility you could earn even more via short term rentals.

Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Low taxes
https://realestatescorecard.com/library/story/taxes/tax-comparison-north-carolina-verses-south-carolina
https://taxfoundation.org/state/south-carolina/

Landlord friendly
https://www.avail.co/education/laws/south-carolina-landlord-tenant-law

Affordable real estate
https://www.zillow.com/myrtle-beach-conway-north-myrtle-beach-metro-sc_r394898/home-values/

Grey Wave
http://www.activenc.com/index.php?option=com_content&view=article&id=99&Itemid=551
https://www.visitmyrtlebeach.com/relocation/retire/ https://smartasset.com/retirement/best-places-to-retire-in-south-carolina

Insurance
https://quotewizard.com/home-insurance/south-carolina

The Tourism Market
https://www.visitmyrtlebeach.com/media/media-resources/press-kits/myrtle-beach-area-fast-facts/ https://www.wmbfnews.com/2019/02/25/myrtle-beach-businesses-feel-impact-record-breaking-tourism/
https://www.masc.sc/Pages/newsroom/uptown/March-2017/A-short-guide-to-short-term-rentals.aspx

Quality of life
https://www.niche.com/places-to-live/search/best-places-to-retire/s/south-carolina/

Rent / ROI
https://www.rentjungle.com/average-rent-in-myrtle-beach-sc-rent-trends/ https://blog.evolvevacationrental.com/2018-vacation-rental-performance-report-myrtle-beach-sc/

Updated Market Prices, Trends & Forecasts
https://www.zillow.com/myrtle-beach-sc/home-values/
https://www.redfin.com/city/12572/SC/Myrtle-Beach/housing-market
https://www.realtor.com/realestateandhomes-search/Myrtle-Beach_SC/overview
https://www.movoto.com/myrtle-beach-sc/market-trends/
https://www.realtytrac.com/statsandtrends/sc/horry-county/myrtle-beach

The post Myrtle Beach Housing Market: Prices, Trends, Forecast 2023 appeared first on Norada Real Estate Investments.

El Paso Real Estate Market Insight

If you are looking at buying a house in El Paso as a potential investment opportunity, you must read till the end. El Paso, Texas is the westernmost city in the state. The city itself is home to nearly 700,000 people, while the metropolitan area is home to approximately 900,000. Its economy is closely tied to Ciudad Juarez just across the Rio Grande in Mexico. The city isn’t getting as much attention as “hot” markets like Dallas or Austin, but is a strong, growing market in its own right. Let’s discuss top ten reasons to invest in the El Paso real estate market. But, before that, we shall take a look at some of the real estate market data and trends in El Paso, Texas.

El Paso real estate market was ranked at 4th in Trulia's hottest real estate markets to watch in 2018. El Paso’s strong job growth, affordability, low vacancy rates and high population of young household were pivotal in the ranking process. El Paso is a great place to live for those who like the outdoors. The metro area's proximity to the Rio Grande provides opportunities to whitewater raft, canoe and fish, while Franklin Mountains State Park and Hueco Tanks State Park are great hiking and rock climbing spots. El Paso boasts one of the lowest crime rates in the United States. The city's stable economy is aided by its diversified business base and strong military presence.

El Paso vs Houston and Dallas Real Estate Markets

Texas has a broad range of real estate markets throughout the state. Houston has been a magnet for immigrants (from abroad and from other states) partly because of inexpensive housing while the local economy in Dallas remains strong because it provides business services and financing for the much larger part of the Texas economy that has nothing to do with oil.

• Overall, Houston, TX is 20.2% more expensive than El Paso, Texas (Data by Bestplaces.net)
• Median Home Cost is the biggest factor in the cost of living difference
• Median Home Cost is 43% more expensive in Houston
• Household income in Houston, is 8% more than it is in El Paso and 17% below the National Average (Data by Bestplaces.net).

Most of the big Texas cities, including Dallas, Houston, Austin and San Antonio, have boomed since 2011, adding thousands to their populations and seeing their home prices rise substantially. El Paso home price appreciation has been gradual since 2011, though to be fair, the city was largely impervious to the massive price drops that plagued most of the country in 2008. Relative to Texas, El Paso's latest annual appreciation rate is lower than 80% of the other cities and towns in Texas.

Last year, El Paso was ranked among the best places to live, coming at No. 76 out of 100 metro areas, according to U.S. News and World Report rankings for 2017. The study was based on quality of life, job market, value of living and people’s desire to live. El Paso was also ranked first in a study listing cities where people can live comfortably for less than $60,000 a year, according to Forbes.com.

The cost of living in El Paso is lower than the national average, while the cost of housing is well below that of other major metropolitan areas, including Houston and Austin. The Central, Cielo Vista and Mesa Hills areas offer more affordable rental properties for sale, while neighborhoods in the northwestern and eastern parts of the metro area have some of the more expensive housing inventory. The amount residents spend on everyday expenses, such as food and transportation, is slightly less than what the average American pays.

El Paso Real Estate Market Forecast 2019, 2020 & 2021

The median home value in El Paso is $128,300 on Zillow. El Paso home values have gone up 5.6% over the past year and El Paso real estate market predictions they will rise 1.6% within the next year. The median list price per square foot in El Paso is $97, which is lower than the El Paso Metro average of $99. The median price of homes currently listed in El Paso is $174,900. The median rent price in El Paso is $1,100, which is the same as the El Paso Metro median of $1,100.

LittleBigHomes.com publishes forecasts for the trend in home prices in 380 Metropolitan Statistical Areas.  The forecast for the trend in the El Paso housing market for the 12 months ending with the 3rd Quarter of 2019 is up. Their Accuracy of the Trend Projection for El Paso is 69%. Accordingly, they estimate that the probability for rising house prices in El Paso is 69% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.

El Paso Housing Market Forecast 2020 – 2021

The forecast for the trend in the El Paso housing market for the 3 years ending with the 3rd Quarter of 2021 is up (positive). The Accuracy of the Trend Prediction for El  Paso is 73%. Accordingly, LittleBigHomes.com estimates that the probability for rising house prices in El  Paso is 73% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd  Quarter of 2018. Check this page each quarter for updates to the El Paso Real Estate Market Forecast.

You can check this page of LittleBigHomes each quarter for updates to the El Paso Real Estate Market Forecast.

El Paso Real Estate Market Trends

El Paso real estate market trends show a 2% week-over-week rise in average listing price and a 0% rise in median rent per month. Trulia has 1,326 resale and new homes for sale in El Paso, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

As per the real estate company named Redfin, the El Paso housing market is not very competitive. Homes in El Paso receive 2 offers on average and sell in around 112 days. The average sale price of a home in El Paso was $203K last month, up 68.5% since last year. The average sale price per square foot in El Paso is $87, up 35.9% since last year. Homes typically receive 2 offers. Homes sell for about 8% below list price and go pending in around 112 days.
Hot Homes in El Paso can sell for around list price and go pending in around 33 days.

El Paso Housing Market Summary

• Median Sales Price: $194,069 (On Trulia)
• Homes For Sale: 1,326 (Trulia)
• Median Rent Per Month: $1,326
• Median Household Income: $37,012
• Home Owners: 66%
• Single Residents: 24%
• Median Age: 33
• College Educated: 22%
• Transportation: 95% Car dependent, 3% by Public Transport

There are 3,489 homes for sale, ranging from $1.1K to $13M on Realtor.com. 220 of which were newly listed within the last week. Additionally, there are 1,055 rentals, with a range of $325 to $4.5K per month. El Paso have affordable condo/townhomes, and affordable 1 – 2 bedroom listings. In December 2018 the housing market in El Paso, TX was a buyer's market, which means there were roughly more active homes for sale than there were buyers. Buyer's markets are generally more advantageous for buyers rather than sellers.

The median list price of homes in El Paso, TX was $158.5K in December 2018, flat year-over-year. The median listing price per square foot was $91. El Paso, TX is a buyer's market in December 2018, which means that the supply of homes is greater than the demand for homes. On average, homes in El Paso, TX sell after 90 days on the market. The trend for median days on market in El Paso, TX is flat since last month, and flat since last year.

There are 351 schools in El Paso, TX. There are 152 elementary schools, 69 middle schools, 54 high schools and 76 private & charter schools.

El Paso, TX Single Family Homes

As per the data from the real estate company called Neigborhoodscout.com, single-family detached homes are the single most common housing type in El Paso, accounting for 67.55% of the city's housing units. Other types of housing that are prevalent in El Paso include large apartment complexes or high rise apartments ( 18.74%), duplexes, homes converted to apartments or other small apartment buildings ( 8.18%), and a few mobile homes or trailers ( 2.78%).

The most prevalent building size and type in El Paso are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 58.57% owning and 41.43% renting. Currently, Zillow has 2,353 single family homes for sale in El Paso, Texas. Additionally, there are 593 single family homes for rent in El Paso.

El Paso Foreclosures And Bank Owned Homes

Mortgage delinquency is the first step in the foreclosure process. The percent of delinquent mortgages in El Paso is 1.6%, which is higher than the national value of 1.1%. On RealtyTrac, there are currently properties in El Paso County, TX that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 2,472.  In January, the number of properties that received a foreclosure filing in El Paso County, TX was 66% higher than the previous month and 6% lower than the same time last year. Home sales for December 2018 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home was $0. The median sales price of a foreclosure home was $0, or 0% higher than non-distressed home sales.

• Homes for Sale = 2,472 (RealtyTrac)
• Recently Sold = 681
• Median List Price = $149,900 (1% increase vs Dec 2017)

El Paso Home Prices And Appreciation Rates

El Paso's appreciation rate notably has been below the national average for the last ten years. The average annual home appreciation rate in El Paso during the period has been just 0.31%, which is lower than 70% of US communities. Over the last year, El Paso appreciation rates have trailed the rest of the nation. In the last twelve months, El Paso's appreciation rate has been 3.04%, which is lower than appreciation rates in most communities in America.

In the latest quarter, NeighborhoodScout's data show that house appreciation rates in El Paso were at 0.73%, which equates to an annual appreciation rate of 2.94%. Notably, El Paso's appreciation rate in the latest quarter is one of the lowest in America. Relative to Texas, their data show that El Paso's latest annual appreciation rate is lower than 80% of the other cities and towns in Texas.

10 Highest Appreciating El Paso Neighborhoods Since 2000: By Neigborhoodscout.com

There are 183 neighborhoods in El Paso. Thunderbird has a median listing price of $444K, making it the most expensive neighborhood. Horizon City is the most affordable neighborhood in El Paso, with a median listing price of $129.9K. The west side of El Paso features many of the city's more exclusive neighborhoods.Just south of the El Paso Country Club are two neighborhoods, The Willows and Stonehenge, that feature houses with seven-figure price tags, but also smaller and more reasonably priced homes. These are top 10 neighborhoods in Chattanooga for real estate investment because they have the highest appreciation rates.

Should You Buy El Paso Rental Houses For Sale?

Seasonal fluctuations in home prices and sales volume are moderate in El Paso. Most years, prices rise slightly during the spring and summer months as demand picks up and more buying activity occurs. During the fall and winter months prices remain flat or recede slightly amid weaker demand. If you are thinking of buying El Paso rental houses for sale, you must read this. These things make El Paso real estate market stand out when it comes to choosing a place to invest in 2019 and beyond. Here the top ten reasons to invest in the El Paso investment properties for cash flow.

1. The Cheap Real Estate

The average home in the El Paso housing market costs around $130,000. Upscale homes cost around $300,000 – cheaper than mid-market homes in “hotter” markets. This means the average home in the El Paso real estate market is 40% cheaper than the national average, $225,000, and large three and four bedroom properties worth a premium as El Paso rental properties cost about what you’d pay for a small starter home in more expensive markets like Dallas. And a mid-market home here is certainly cheaper than a condo in a hot market like Austin.

2. The Good Return on the Investment

The median rent here is around $800 a month. You could see significant ROI on rental homes in premium areas, since an apartment rental in the better areas fetch around $1600 a month. For example, El Paso rental houses near the Mountain View command higher rates because they are home to military families and retired Army personnel who pay to be close to work and military medical facilities.

3. The Demographic Momentum

The median age in the United States is around 40. El Paso’s population is relatively younger due to the high level of immigration from Mexico, Central America and the surrounding rural areas. For those reasons, the median age here is only 33. Better yet for the long-term future of the El Paso housing market, nearly a third of residents are under the age of 20, and they’re likely to stay here for work.

4. The Strong Job Market

We could cite quality of life issues like low crime and good schools that bring people to El Paso. Yet that doesn’t matter if you can’t afford to live somewhere, and you can only do that if you have a job. The El Paso job market has an unemployment rate of around 4%. It hit a low of 3.7% in 2018, below both the Texas state and national average unemployment rates. El Paso’s job market is quite diversified, and it is seeing gains in areas like healthcare, government, finance, hospitality and logistics.

There are also a fairly large number of jobs with defense contractors like Raytheon. The fact that El Paso is a major inland border crossing explains the large number of Border Patrol, Customs and DEA jobs in the city. An interesting byproduct of the large bilingual population in the El Paso housing market is the significant number of call centers. If you press 2 for Spanish, there is a good chance you’re calling one of the dozen call centers that employ more than ten thousand people in the city.

The Maquiladora program in Mexico leads to many labor-intensive products being made in neighboring Ciudad Juarez before being shipped to factories in El Paso for assembly into the final product. This insulates the area from the boom and bust cycles much of West Texas sees as oil, grain and cattle prices rise and fall. It also attracts job seekers who fuel demand for properties in the El Paso real estate market.

5. The Large Military Market

Any city that is home to a military base will be home to a large population of renters. Fort Bliss, one of the largest Army bases in the U.S., certainly creates demand for El Paso rental houses. Biggs Army Airfield and the Beaumont Army Medical Center are also located here. They’re major local employers, but one benefit of the El Paso real estate market is that it isn’t the only major source of demand for El Paso rental houses. People coming here for school, work or merely opportunity rent until they can afford to buy or move on.

6. The Sizable Student Market

Being the largest city in the region, the city has its own University of Texas campus, the University of Texas at El Paso or UTEP. This is one of the largest colleges in the state, and it is notable for its large Hispanic student body. There are over twenty thousand students at the school, creating a sizable market for El Paso rental houses. The school also attracts researchers from around the nation.

It is one of the few R1 universities according to the Carnegie classification of higher education institutions. It has a sizable engineering program. However, UTEP is not the only college in the area. The Texas Tech University Health Sciences Center trains future nurses, lab technicians, doctors and biomedical engineers. On top of this are several career colleges, the International Business College and vocational/tech training programs.

7. The High Demand for Affordable Rentals

El Paso is notable for its affordable real estate market. The average pay is well below the American average income, but houses are cheaper, too. For example, El Paso was the only city to hit a Realtor.com list of most affordable metropolitan areas. However, that doesn’t mean there isn’t high demand for El Paso rental houses. Let’s look at the numbers.

The average income for a resident is just $20,000 a year, $8,000 less than the U.S. average. This is skewed by the nearly 20% of residents who earn less than $15,000 a year. The median household income for the US is roughly $55,000. For El Paso residents, it is only $42,000 a year. This creates high demand for cheaper properties, though many of the new subdivisions cater to military personnel who can afford $1500-$2500 for El Paso rental houses.

If you can find or buy small homes, trailers or small condos to meet the demand for people who can only afford $300 to $700 a month in rent, you’ll find people lining up to rent from you. If you can convert a large single family home into multifamily housing, you’ll find plenty of renters, too. When you can see people living in colonias without running water or sewer service simply to own a home of their own, you know there are people eager to move up into a two bedroom house with working utilities.

8. How Geography Limits Expansion

Geography is limiting expansion of the El Paso real estate market in several ways. While it is possible to cross the border, it isn’t something people want to do on a daily basis for work – so the El Paso real estate market can’t grow on the Rio Grande side. The city is named for the pass through the surrounding mountains, and that limits where people can grow.

While Fort Bliss has some on base housing, it can’t house everyone who works there. Nor are you going to see subdivisions catering to civilians break ground there, though it covers over a million acres. Geography limits how much new housing El Paso can build unless they build denser, taller, or both.

9. How Redevelopment Has Hit the Whole City

San Jacinto Plaza is undergoing renovations to create an attractive city center. El Paso’s main thoroughfares are getting a new streetcar line, something that improves public transit in a city that needs it. However, they are creating multiple New Urban style centers instead of trying to just redevelop downtown. This means that you can find properties across the city that are affordable, renovate them, and sell them at a profit when the area becomes more attractive.

10. How Landlord Friendly the State Is

Texas doesn’t have an income tax, but they more than make up for it with high property taxes. However, potential investors will appreciate how landlord friendly the state is, since tenants that don’t respect the property or obligation to pay rent will hurt your cash flow. Texas is very landlord friendly. You can evict tenants if they aren’t in compliance with lease conditions. The state lets you enter your own agreements on how you’ll handle repairs, such as setting your own limit beyond which you’ll reimburse the tenant or deduct the repairs from the rent.

Texas is more relaxed on mandates for security devices. If someone has not paid the rent, you can begin eviction. The law allows them to appeal the eviction, but they must pay rent within five days of the ruling. If they haven’t appealed, paid the rent or left the property, you can send in the sheriff to evict them.

Exact property tax rates in El Paso County, which includes the city of El Paso, depend on where in the county and in what school district a home is located. As a general rule, an El Paso homeowner should expect to pay annual property taxes equivalent to roughly 2 to 2.25% of his home's market value.

El Paso Real Estate Investment Properties

Maybe you have done a bit of real estate investing in El Paso, Texas but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you invest wisely, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like El Paso, TX. El Paso is an affordable housing market with several large renter populations. Demographic growth and job growth are attracting residents to a market that can’t grow with demand, and that makes it an excellent opportunity for investors.

Buying investment property is different than buying an owner-occupied home. The investment properties are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business. 

Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.

We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities.

Each week you’ll receive an email newsletter with our featured real estate investment opportunities, plus informative articles and news bites.  Join Now — it’s FREE!

Apart from the El Paso real estate market, you can also invest in Chattanooga, TN. Chattanooga is a small city seeing significant growth. It is attracting people from around the state, and they stay due to the excellent quality of life and strong economy. Its population growth has been a steady nearly 1% a year for almost a decade. The strong job market and relatively young population explains why the Chattanooga area saw population grow roughly 1.1% in 2017.

And since the 2010 Census, the city has been the second fastest growing big city in the state. If it is successful in cultivating local high tech startups and new businesses, it will see even faster growth as it attracts people to work here that then buy homes in the Chattanooga real estate market and start their families here.

If you’re buying Chattanooga rental homes, the high sales taxes don’t affect you. The city has been promoted in a number of articles as a great place to retire, and that is only made more so by their tax freeze for seniors.

Another market that we suggest is the housing market in Durham, NC. There are many reasons to buy investment properties in the Durham housing market. An unusual combination of features makes Durham attractive to real estate investors, since it creates a large population of renters willing and able to pay more per month to live here because they cannot necessarily find their dream home.

While redevelopment downtown is converting industrial real estate into rental units to meet demand in the Durham real estate market, it isn’t enough. This helps explain why rents are increasing faster than the rate of inflation. However, you’re not going to see a ton of new apartments and condos because the city’s zoning laws continue to favor single family, detached houses.

Since the city is running out of large vacant areas near utilities to build new tracts of single family homes on, building out is not going to help the area meet demand for new housing. NIMBY movements can fight the rezoning of property to be able to build multi-family housing. All of this guarantees strong future growth of rental rates for anyone holding Durham rental properties.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Military info
https://en.wikipedia.org/wiki/El_Paso,_Texas

College market
https://en.wikipedia.org/wiki/University_of_Texas_at_El_Paso
http://elpaso.ttuhsc.edu

Demographic momentum

El Paso, TX

Home prices

Why El Paso, TX Is a Great Place to Live

https://realestate.usnews.com/places/texas/el-paso

Job market                                                                                                https://realestate.usnews.com/places/texas/el-paso/jobs
http://www.city-data.com/us-cities/The-South/El-Paso-Economy.html
https://www.elpasotimes.com/story/money/business/2018/01/22/unemployment-rate-jobs-el-paso-texas/1049496001/

Affordable market                                                                      https://www.bestplaces.net/economy/city/texas/el_paso
https://elpasoheraldpost.com/el-paso-housing-market-recognized-as-one-of-the-most-affordable-in-nation              http://www.governing.com/topics/transportation-infrastructure/gov-texas-colonias-border-infrastructure.html

Renovations
https://www.theatlantic.com/business/archive/2016/01/el-paso-urban-walkable-americans/431661

Landlord friendly
https://www.auction.com/blog/5-landlord-friendly-states-in-2019

How to evict a tenant in Texas

Market Data, Trends and Forecast                                                                                      https://www.zillow.com/ElPaso-tx/home-values                                                            https://www.bestplaces.net/cost-of-living/el-paso-tx/houston-tx/50000 https://realestate.usnews.com/places/texas/el-paso https://www.realtytrac.com/statsandtrends/foreclosuretrends/tx/el-paso-county https://www.neighborhoodscout.com/tx/el-paso/real-estate                            https://www.redfin.com/city/6171/TX/El-Paso/housing-market                    https://www.trulia.com/real_estate/El_Paso-Texas                                    https://www.realtor.com/realestateandhomes-search/El-Paso_TX/overview            https://www.littlebighomes.com/real-estate-el-paso.html                https://www.investopedia.com/walkthrough/guide-buying-house-us/real-estate-guide-top-us-cities/southern-real-estate-markets/el-paso-real-estate-market                                          https://www.elpasotimes.com/story/news/local/el-paso/2018/01/10/el-paso-ranked-4th-hottest-real-estate-market-watch-2018-truliai/1019109001

The post El Paso Housing Market: Prices, Trends, Forecast 2023 appeared first on Norada Real Estate Investments.

How is The Madison, Wisconsin Real Estate Market 2019?

Real estate can be a worthy investment opportunity. With research, a plan and the right price, just about anyone can be a real estate investor. If you are looking at investing in the Madison real estate market as a potential investment opportunity, you must read till the end.

Madison is often overlooked in favor of the largest city in Wisconsin, Milwaukee. Yet the city is both the state capitol and the second largest in the state. Madison, Wisconsin is home to roughly a quarter of a million people. However, the Madison housing market is much larger than this.

Take suburbs into account, and the metro area is home to roughly 650,000 people. This metropolitan region is so large that it extends into parts of Iowa. Yet size alone can’t be a reason to invest in an area. There are a number of reasons to consider investing in the Madison real estate.

Is Madison going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Madison housing market trends and find out the prospects of investing in the Madison real estate in 2019.

Madison Real Estate Market Forecasts 2019 & 2020

The median home value in Madison is $254,200 on Zillow. Madison home values have gone up 2.9% over the past year and Zillow's Madison real estate market prediction is that the prices will rise 1.3% by May 2020. The median list price per square foot in Madison is $169, which is lower than the Madison Metro average of $172.

The median price of homes currently listed in Madison is $299,900 while the median price of homes that sold is $256,700. The median rent price in Madison is $1,695, which is the same as the Madison Metro median of $1,695.

Here is the Madison real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 1.3% till May 2020.

Madison Housing Market Forecast 2019 – 2021

The Madison housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Madison housing market trend prediction is 85%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Madison, WI is 85% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Madison, Wisconsin Real Estate Forecast.

Madison Real Estate Market Trends

Madison real estate market trends indicate an increase of $15,000 (6%) in median home sales and a -1% drop in median rent per month over the past year. The average price per square foot for this same period rose to $172, up from $166. Trulia has 1,021 resale and new homes for sale in Madison, WI, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

The median sales price for homes in Madison for Apr 4 to Jul 3 was $265,000 based on 770 home sales. Average price per square foot for Madison was $172, an increase of 4% compared to the same period last year. The median rent per month for apartments in Madison for Jun 5 to Jul 5 was $1,780.

As per the real estate company named Redfin, the Madison housing market is very competitive. Homes in Madison receive 1 offers on average and sell in around 41 days. The average sale price of a home in Madison was $290K last month, up 7.0% since last year.

The average sale price per square foot in Madison is $161, up 2.5% since last year. Homes typically receive 1 offer. Homes for sale in the Madison housing market sell for about 1% above list price and go pending in around 41 days. Hot Homes for sale in Madison, WI can sell for about 4% above list price and go pending in around 18 days.

Madison Housing Market Statistics

There are 1,656 homes for sale in Madison, WI ranging from $32.9K to $10.5M on Realtor.com. 141 of which were newly listed within the last week. Additionally, there are 487 Madison rental properties, with a range of $500 to $11.7K per month. In June 2019 the housing market in Madison, WI was a seller’s market, which means there were roughly more buyers than there were active homes for sale.

The median list price of homes in Madison, WI was $319.9K in June 2019, trending down -5.1% year-over-year. The median listing price per square foot was $164. The median sale price was $304.3K. On average, homes in Madison, WI sell after 54 days on the market. The trend for median days on market in Madison, WI has gone up since last month, and slightly down since last year.

The median list price in Madison, WI is $334,950 on Movoto.com. The median list price in Madison went down 1% from June to July. Madison's home resale inventories is 446, which increased 2 percent since June 2019. The median list price per square foot in Madison is $181. June 2019 was $184. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in July 2019.

Madison, WI Single Family And Multi-Family Homes

Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

As per the real estate company called Neigborhoodscout.com, the median house price in Madison, WI is $281,359, which indicates that home prices in Madison are near the national average for all cities and towns in the United States. Single family detached homes are the single most common housing type in Madison, accounting for 42.57% of the city's housing units.

Other types of housing that are prevalent in Madison include large apartment complexes or high rise apartments ( 39.26%), duplexes, homes converted to apartments or other small apartment buildings ( 12.48%), and a few row houses and other attached homes ( 5.11%).

People in Madison primarily live in small (one, two or no bedroom) single-family detached homes. Madison has a mixture of owner-occupied and renter-occupied housing.

The Madison real estate market continues to trend very favorably for sellers of single family homes. Homes are selling quickly in 2019. Inventory remains limited and Madison single family home prices are on the rise.

Currently, there are 625 single family homes for sale in Madison, WI on Zillow. Additionally, there are 272 single family homes for rent in Madison, WI. Under potential listings, there are about 6 Foreclosed and 40 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Madison, WI Foreclosures And Bank Owned Homes 2019

According to the real estate company called Zillow, in Madison 0.1 homes are foreclosed (per 10,000). This is lower than the Madison Metro value of 0.7 and also lower than the national value of 1.2. The percent of delinquent mortgages in Madison is 0.4%, which is lower than the national value of 1.1%.

With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Madison homeowners underwater on their mortgage is 3.8%, which is higher than Madison Metro at 3.7%.

There are currently 103 properties in Madison, WI that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 558. In May 2019, the number of properties that received a foreclosure filing in Madison, WI was 0% higher than the previous month and 0% higher than the same time last year.

Home sales for April 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Madison was $0. The median sales price of a foreclosure home in Madison was $0, or 0% higher than non-distressed home sales.

Madison Home Prices And Real Estate Appreciation 2019

Madison home prices have been trending higher since 2013. Prices increased in 11 of 12 months in 2018 and started the year off higher in 2019. The cumulative real estate appreciation rate over the ten years has been 22.29%, which ranks in the top 40% nationwide. This equates to an annual average Madison house appreciation rate of 2.03%.

Over the last year, Madison appreciation rates have trailed the rest of the nation. In the last twelve months, Madison's real estate appreciation rate has been 3.21%, which is lower than appreciation rates in most communities in the nation.

In the latest quarter, real estate appreciation rates in Madison were at -0.62%, which equates to an annual appreciation rate of -2.44%.

The above statistics on real estate appreciation in Madison, WI were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Wisconsin, their data shows that Madison's latest annual appreciation rate is lower than 70% of the other cities and towns in Wisconsin.

Best Places To Buy Real Estate In Madison, Wisconsin

If you are looking to buy real estate in Madison, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Madison real estate and you should be able flip it for a lump sum profit.

When looking to invest in Madison real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Madison investment property should be low. The neighborhoods in Madison must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.

There are 82 neighborhoods in Madison. There are 144 schools in Madison, WI. There are 58 elementary schools, 29 middle schools, 20 high schools and 37 private & charter schools.

Some of the best neighborhoods in Madison, Wisconsin are Downtown Madison, Regent and Monona. Cherokee Park has a median listing price of $525K, making it the most expensive neighborhood. Sherman is the most affordable or cheapest neighborhood in Madison, WI with a median listing price of $212,000.

Here are the 10 best neighborhoods in Madison to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).

Should You Invest In Madison, WI Real Estate In 2019?

Is it worth buying a house in Madison, WI? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Madison is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Madison housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Madison but we have collected ten evidence based positive things for those who are keen to invest in the Madison real estate in 2019.

Investing in Madison real estate will fetch you good returns in the long term as the home prices in Madison have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Madison real estate market which can help investors who are keen to buy an investment property in this city.

1. The Geographical Constraints

Because the city is wedged between Lake Mendota and Lake Monona, it can’t grow in two directions. It has exploded out like a funnel from the isthmus it was founded on. There are several recreational areas and state parks that have blocked off flood-prone land and undeveloped spaces to construction, further restricting growth in the area.

2. Madison is a Large Student Market

Any state capitol is going to be home to a flagship campus of the state university system. The University of Wisconsin Madison campus dumps around forty thousand likely renters into the Madison housing market.

However, it isn’t the only college in the area. Herzing University is a private college with around two thousand students. Maranatha Baptist Bible College is home to more than a thousand students. Globe University has two campuses, each with around 140 students.

This gives investors the ability to diversify their Madison real estate investment portfolio even while catering to the student market.

3. The Relatively Affordable Taxes

Wisconsin ranks 16 out of the 50 states in terms of overall tax burden. All of the Midwest ranks relatively high in these national reports. However, Wisconsin is a relative bargain compared to the rest of the region.

For example, its income taxes are far lower than Illinois, and Illinois is planning on jacking up property taxes one full percentage point on the entire state.

This is in comparison to Madison authorities hardly increasing tax rates or assessments, and in some cases, lowering the property taxes people owe. Wisconsin’s income taxes are lower than Iowa and Ohio’s, too.

4. The Strong Economy

The Madison real estate market is bolstered by the strong local economy. The state and city governments are major employers. So, too, are educational institutions from the school district to the various colleges in the area.

Private employers like Epic Systems are major employers, as well, balancing out the job market. The unemployment rate in Madison is less than 3 percent. On the edges of the Madison real estate market, unemployment edges up to five percent.

Unemployment rates in the Madison area are consistently a full percentage point lower than the national average and far lower than unemployment rates in rural parts of the state.

That creates long-term demand for Madison real estate investment properties as people move from rural areas to the city to work or come for school and decide to stay.

5. The Strong Wage Growth

Madison doesn’t just have a hot job market. Thanks to the university and government support, it is becoming a high tech hub. This is creating not just new jobs but high paying jobs in Madison.

This will attract many new people to the Madison housing market while driving demand for both single family homes and luxury properties. These high paying jobs range from coding to gaming to electronic medical records.

This is why the average salary for Madison residents is several thousand dollars higher per year than the state average.

6. The Demographic Momentum

Demographic momentum refers to the trends an area is undergoing. The Madison housing market will benefit from the area’s much younger than average population.

The average age for residents is 31, eight years less than the state average. While many college students move on, many choose to stay in the area due to its low unemployment and start their families here.

This creates slow, steadily growing demand for the Madison housing market, though the rest of the state is in demographic decline.

7. Livability Attracts People

While people may be able to find jobs in a number of cities, many choose to come to Madison because of its overall quality of life. The city is dotted with green spaces, and housing doesn’t cost a fortune.

There’s a strong nightlife thanks to the universities, but you’re an hour drive from twenty state parks and wilderness areas. And you get all of this with a cost of living roughly seven percent below the national average.

8. The Relatively Affordable Madison Real Estate

The average home in the Madison real estate market surpassed three hundred thousand dollars in 2019. This is higher than the state average. However, it is a bargain compared to hot regional markets like Chicago.

There, you’d be hard pressed to find a rental house for less than 350,000 unless you don’t mind worrying about the crime. You can find rental real estate in Milwaukee, too, but a house that costs less than 150K is often in a neighborhood you’d be afraid to visit.

The Madison real estate market is notable for the sheer number of “surban” neighborhoods that Millennials want, walkable neighborhoods with amenities that offer more than tract homes. This mid-level density is being built in new planned communities around the country, and they’re generally upscale developments.

The Madison housing market offers numerous existing properties in older neighborhoods, making Madison real estate investment more affordable for those who’d otherwise pay half a million dollars for such a hot property.

9. The Larger Than Expected Madison Rental Market

The demand for Madison real estate investment properties by renters is higher than you’d expect for several reasons. One is that the Madison housing market costs more than the state average due to demand.

The second is that the large population of student renters in the Madison real estate market drives up rents, forcing many renters to save up longer before they can buy a home.

There are also Millennials who work here after graduation but are reluctant to commit to buying a house, so they continue to rent. This is why less than 60 percent of Madison residents are home owners.

10. The Hidden Affordable Housing Market

While Madison, Wisconsin is a mid-sized city in its own right complete with suburbs, the surrounding area includes a number of villages and un-incorporated areas.

You could diversify your Madison real estate investment portfolio by owning a stake in a trailer park or renting out a trailer home that costs less than 30,000 dollars to buy.

If you’re looking for bargains, rural properties are one of the few such options because there are so few distressed sellers delinquent on their mortgage. (A third as many people are late on their house payments as the national average).

Note that some of these are located close to Madison proper, sitting near recreational areas and other less desirable land.

Madison Real Estate Investment

Maybe you have done a bit of real estate investing in Madison, Wisconsin but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Madison real estate investment opportunity would be a key to your success. in If you invest wisely in Madison real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

The less expensive the Madison investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Madison, you should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Madison, WI. The Madison, Wisconsin area sits in a sweet spot. It is larger than a small town and has the amenities of a big city, but it lacks the problems of some of the larger cities in the region.

It is attractive to many who come here to learn and work, but it isn’t growing so fast that it suffers problems from that growth. These are a few reasons why you should seriously consider the Madison area for investment.

Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Madison, WI is your ability to find great real estate investments in that area.

According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.

We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

The aim of this article was to educate investors who are keen to invest in Madison real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2019

The other best place to invest in real estate is Santa Fe, NM. Santa Fe is often overlooked in favor of larger cities in New Mexico or the more exotic, touristy destinations like Taos. However, the recovering Santa Fe housing market is ripe for investment.

The Santa Fe housing market sees a small but significant influx of snowbirds or winter residents. It attracts those interested in its history, arts scene and educational institutions instead of the perennial golfers heading to Scottsdale, Arizona. This also creates a larger than expected demand for mobile home slots and one and two bedroom homes for rent.

Another sizzling market to invest in real estate is Asheville, NC. The Asheville, North Carolina area is a stable, steadily growing housing market with several profitable rental markets investors would appreciate. It counterbalances this with a healthy job market and demographic momentum that will keep it going strong for years to come.

The lush forests around Asheville attract tourists for the hiking, rafting and other outdoor activities. The city has limited short-term rentals, but that doesn’t mean this isn’t an option if you own Asheville real estate investment properties.

For example, parts of the Asheville real estate market are zoned as “resort”. You can rent these properties out on short term rental sites to your heart’s delight.

Properties that already had short term vacation rental permits are grandfathered into the existing rules, though you should verify the permit could transfer to you before buying it the Asheville real estate investment property. Towns outside of Asheville proper have their own rules, too, and are more relaxed in this regard.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Geographical constraints
https://en.wikipedia.org/wiki/Madison,_Wisconsin

Overview of Madison
https://en.wikipedia.org/wiki/Madison,_Wisconsin,_metropolitan_statistical_area

Student market
https://www.collegesimply.com/colleges-near/wisconsin/madison

Taxes
https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494
https://madison.com/wsj/news/local/govt-and-politics/for-many-madison-area-homeowners-a-rare-bit-of-good/article_8e45a268-07b4-5f94-a8b7-bc9c25688cd3.html

Economy
https://madison.com/wsj/business/wisconsin-unemployment-declines-madison-area-has-lowest-rates/article_84480310-13ad-5c0f-b81b-716cd76718d0.html
https://en.wikipedia.org/wiki/Epic_Systems                                https://badgerherald.com/news/2019/03/25/wisconsin-unemployment-rate-drops-to-2-9-percent

Demographic momentum
http://www.city-data.com/city/Madison-Wisconsin.html

Livability
https://livability.com/best-places/top-100-best-places-to-live/2019/wi/madison

Why Millennials Are Moving to Madison, WI

Larger rental market

Why Millennials Are Moving to Madison, WI

Affordable real estate
https://madison.com/wsj/news/local/govt-and-politics/madison-s-average-home-value-tops/article_bb3095ae-f92d-5028-be3e-28572caef9f0.html
https://www.chicagotribune.com/business/ct-chicago-real-estate-1230-biz-20151222-story.html

Wage growth
https://livability.com/top-10/college/top-10-best-cities-for-recent-college-grads/2018/wi/madison

Code Warriors: Madison, WI is Emerging as the New Gaming Epicenter

http://www.city-data.com/city/Madison-Wisconsin.html

Affordable housing market
http://www.city-data.com/city/Madison-Wisconsin.html
https://www.zillow.com/madison-metro-wi_r394816/home-values
https://www.mhvillage.com/Communities/MobileHomeParks.php?City=Madison&State=WI

Housing Market Data, Trends & Statistics
https://www.zillow.com/Madison-wi/home-values
https://www.littlebighomes.com/real-estate-madison.html
https://www.trulia.com/real_estate/Madison-Wisconsin
https://www.redfin.com/city/12257/WI/Madison/housing-market
https://www.movoto.com/madison-wi/market-trends
https://www.realtor.com/realestateandhomes-search/Madison_WI/overview
https://www.neighborhoodscout.com/wi/madison/real-estate
https://www.realtytrac.com/statsandtrends/wi/dane-county/madison

The post Madison Housing Market: Prices, Trends, Forecast 2023 appeared first on Norada Real Estate Investments.

Report on Vancouver, WA Housing Market Trends in 2023

The Vancouver, WA housing market has shown positive trends in 2023, with the median listing home price in January 2023 is $489K, which is a 2.9% increase compared to the previous year. The median listing home price per square foot was $278, indicating that the cost of living space has also gone up.

The median home sold price was $475K, which is slightly lower than the median listing price, indicating that buyers may have been able to negotiate lower prices or that sellers may have overpriced their properties. The sale-to-list price ratio was 99.79%, indicating that homes in Vancouver, WA sold for approximately the asking price on average in January 2023.

Vancouver, WA is currently a seller's market, which means that there are more people looking to buy homes than there are homes available. This has likely contributed to the increase in the median listing home price. The median days on the market for homes in Vancouver, WA was 63 days, which is slightly higher than the previous month but has gone up slightly compared to last year. This could be an indication that buyers are taking longer to make decisions or that there are more homes available, giving them more choices.

The Vancouver, WA housing market is showing positive trends in 2023, with increasing median listing home prices, a seller's market, and homes selling for close to the asking price. The trend for median days on market has gone up slightly, indicating that buyers may be taking longer to make decisions or that more homes are available.

Vancouver, located in the southwest region of Washington State, is a rapidly growing city that offers a combination of urban amenities and scenic beauty. The following report will provide an overview of the Vancouver housing market trends in 2023 based on recent data by Redfin.

Home Prices and Sales:

In January 2023, the median sale price for all home types in Vancouver was $475,000, up 6.7% from the previous year. The average sale price per square foot was $258, down 7.2% from the previous year. The number of homes sold in January 2023 was 111, which is a significant decrease from the 192 homes sold in the same month last year. On average, homes in Vancouver are taking longer to sell, with an average of 40 days on the market compared to just six days last year.

Competitiveness:

The Vancouver housing market is somewhat competitive, with homes receiving an average of three offers and selling in about 30 days. The average home sells for approximately 1% below the list price, and some homes receive multiple offers. Hot homes can sell for around the list price and go pending in about eight days. Compared to nearby cities, Vancouver is more competitive than some and less competitive than others. Multiple offers are rare in some nearby cities, and the average time on the market is longer, with hot homes taking up to 17 days to go pending.

Migration and Relocation Trends:

According to Redfin data, 2% of homebuyers nationwide are searching to move to Vancouver from outside metros. The most popular metros for homebuyers searching to move into Vancouver are San Francisco, Los Angeles, and Eugene. About 80% of Vancouver homebuyers searched to stay within the Vancouver metropolitan area, with Bend being the most popular destination, followed by Phoenix and Spokane.

In conclusion, the Vancouver housing market is somewhat competitive, with increasing median sale prices and a decreasing number of homes sold. Compared to nearby cities, Vancouver is more competitive, with homes selling faster and some receiving multiple offers. While the number of homes sold decreased in January 2023, the median sale price increased. Vancouver is at risk of natural hazards and environmental risks, such as drought, fire, heat, and storms, and climate change is expected to increase the number of hot days in the city.

Vancouver Housing Market Forecast 2023-2024

If you’re keen to invest in the Vancouver WA real estate market 2019 and buy before prices become out of reach, you must read till the end. Vancouver, Canada is one of the hottest real estate markets on the planet. It is so bad that Canada passed many rules to cool it down. What many don’t know is that it has a sister of sorts – Vancouver, Washington.

Vancouver, Washington is smaller and less well known than big cities like Seattle, but it has many points in its favor. Despite sharing the same name, Vancouver, Washington is not across the Canadian border from Vancouver, BC. Vancouver, Washington is on the southern side of Washington State.

It sits on the Washington-Oregon border. It is actually a suburb of Portland, Oregon. And Vancouver, Washington was founded years before its cousin in Canada. Is Vancouver, WA going to be one of the hottest real estate markets for investors in 2019 & 2020? Let’s take a deep look at the latest Vancouver WA housing market trends to come to a conclusion.

Vancouver WA Real Estate Market Forecasts 2019 & 2020

The real estate data from Zillow shows that the median home value in Vancouver is $324,600. Vancouver home values have gone up 4.3% over the past year and their Vancouver real estate market prediction is that the prices will rise 1.4% within the next year. The median list price per square foot in Vancouver is $209, which is lower than the Portland-Vancouver-Hillsboro Metro average of $232.

The median price of homes currently listed in Vancouver is $384,500 while the median price of homes that sold is $338,100. The median rent price in Vancouver is $1,825, which is lower than the Portland-Vancouver-Hillsboro Metro median of $1,995.

Here is the Vancouver, WA real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 1.4% till Aug 2020.

Vancouver WA Real Estate Market Trends

According to real estate experts, the Vancouver WA real estate market is one of the healthiest markets in the United States. The trends show that the Vancouver WA home prices will continue to rise in 2020 but at a slower pace than this year.

This year the Vancouver WA real estate market trends showed stability and affordability. The median home value in Vancouver, Washington rose by more than 6% over the last year or so, from April 2018 to April 2019. According to Sammamish Mortgage, they expect the home values within the Vancouver real estate market to rise by around 2.3% over the next 12 months. This prediction was made in April 2019, so it extends into the summer of 2020.

Currently, Trulia has 1,430 resale and new homes for sale in Vancouver, WA, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median sale price in Vancouver, WA is $346,000. Homes are selling for about $217/sqft.

In the past month, 442 homes have been sold in Vancouver, WA on Redfin.com. In addition to houses in Vancouver, there were also 123 condos, 88 townhouses, and 7 multi-family units for sale in Vancouver last month. As per their real estate data, the Vancouver WA housing market is somewhat competitive. Homes in Vancouver receive 2 offers on average and sell in around 21 days.

The average sale price of a home in Vancouver was $342K last month, up 0.93% since last year. The average sale price per square foot in Vancouver is $200, up 6.1% since last year. Homes typically receive 2 offers.

Homes in the Vancouver housing market sell for around list price and go pending in around 21 days. Hot homes in Vancouver, WA can sell for about 1% above list price and go pending in around 6 days.

There are 1,203 homes for sale in Vancouver, WA on Realtor.com. 138 of which were newly listed within the last week. Additionally, there are 284 Vancouver rentals for sale, with a range of $700 to $3.2K per month. According to their statistics, in August 2019, the Vancouver, WA housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.

In August 2019, the median list price of homes in Vancouver, WA on Realtor.com was $375K, trending up 2.7% year-over-year. The median listing price per square foot was $199. The median sale price was $359.5K. On average, homes in Vancouver, WA sell after 54 days on the market. The trend for median days on market in Vancouver, WA has gone up since last month, and slightly down since last year.

The median list price in Vancouver, WA is $415,000 on Movoto.com. The median list price in Vancouver was less than 1% change from September to October. Vancouver's home resale inventories is 932, which decreased 1 percent since September 2019. The median list price per square foot in Vancouver is $202. September 2019 was $203. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in October.

Vancouver, WA Single Family And Multi-Family Homes

Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units. As per the real estate company called Neigborhoodscout.com, the median house price in Vancouver, WA is $298,225, which indicates that home prices in Vancouver are well above the national average for all cities and towns in the United States.

Single-family detached homes are the single most common housing type in Vancouver, accounting for 53.10% of the city's housing units. Three and four bedroom single-family detached homes are the most common housing units in Vancouver, WA.

Other types of housing that are prevalent in Vancouver include large apartment complexes, duplexes, homes converted to apartments and a few row houses and other attached homes. Vancouver has a mixture of owners and renters, with 50.32% owning and 49.68% renting.

Currently, there are 1,157 single family homes for sale in Vancouver, WA on Zillow. Additionally, there are 226 single family homes for rent in Vancouver, WA. Under potential listings, there are about 10 Foreclosed and 76 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Vancouver, WA Foreclosures And Bank Owned Homes 2019

As per the Vancouver foreclosure data by Zillow, in Vancouver 0.5 homes are foreclosed (per 10,000). This is lower than the Portland-Vancouver-Hillsboro Metro value of 0.8 and also lower than the national value of 1.2. The percent of delinquent mortgages in Vancouver is 0.6%, which is lower than the national value of 1.1%.

With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.

The percent of Vancouver homeowners underwater on their mortgage is 3.3%, which is lower than Portland-Vancouver-Hillsboro Metro at 3.4%.

There are currently 111 properties in Vancouver, WA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 587. In August 2019, the number of properties that received a foreclosure filing in Vancouver, WA was 12% lower than the previous month and 10% higher than the same time last year.

Best Neighborhoods to Invest in Vancouver Rental Real Estate

If you are looking to invest in the Vancouver WA rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Vancouver WA rental real estate and you should be able flip it for a lump sum profit.

When looking to invest in Vancouver WA real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Vancouver WA rental property should be low. The neighborhoods in Vancouver, WA must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 28 elementary schools, 28 middle schools, 30 high schools and 17 private & charter schools in Vancouver, WA. There are 77 neighborhoods in Vancouver.

Some of the best neighborhoods in or around Vancouver, Washington are Northeast Hazel Dell, Sunnyside, Mill Plain, Vancouver Heights, Vancouver Mall, Arnada, Downtown Vancouver, St Helens, Old Evergreen Highway, Hayden Island, Vanmall, and Carter Park.

Felida has a median listing price of $545K, making it the most expensive neighborhood. Ogden is the most affordable neighborhood in Vancouver, WA with a median listing price of $308K.

Here are the best neighborhoods to invest in Vancouver WA rental real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).

Should You Invest in Vancouver WA Rental Real Estate?

Now that you know where Vancouver is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Is Vancouver, WA a good place to invest in real estate?

Many real estate investors have asked themselves if buying a rental property in Vancouver, WA is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Vancouver WA housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Vancouver but we have collected ten evidence based positive things for those who are keen to invest in the Vancouver rentals in 2019.

Investing in Vancouver WA rentals will fetch you good returns in the long term as the home prices in Vancouver have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Vancouver WA real estate market which can help investors who are keen to buy an investment property in this city.

We’ll focus on real reasons to invest in the Vancouver WA real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.

1. The Relatively Affordable Real Estate in Vancouver, WA

The Vancouver WA housing market is the fourth largest in the state of Washington. The median home price is around 300,000 dollars. That is less than half the price of a home in the Seattle metro area.

That makes Vancouver WA real estate investment accessible to those who couldn’t afford to invest in the hotter Washington state metro areas. More importantly, the average home in the Vancouver Washington real estate market is a full 100,000 less than the comparable home in neighboring Portland.

2. The High Demand Relative to Supply

The Vancouver WA real estate market is notable for its sustained two percent vacancy rate. There simply isn’t enough housing for everyone, though geographic constraints and environmental and zoning restrictions limit where more housing can be built.

While the number of people moving to the state of Washington has dropped off, the Vancouver WA housing market continues to see people moving to the city from the rest of the state, especially rural areas.

This will continue to put pressure on a real estate market where supply is constrained. For example, moving to the Vancouver WA housing market was a solution to the Portland urban boundary. Then the Vancouver area got one of its own.

3. The Economics that Lead to Many Renters

A Vancouver WA real estate investment property will have many renters vying for it. About 40 percent of residents rent. Several factors contribute to the high rental rate and will keep it high for the foreseeable future. One is an unemployment rate one percent above the national average.

Unstable incomes preclude many from buying a home. Another factor is the cost of real estate relative to incomes. The average resident of the Vancouver area earns 26,000 a year, 2000 less than the national average, while homes are 60,000 dollars more expensive than the national average.

Many would-be home owners just can’t afford to buy a home here, though it is cheaper than Portland.

4. The Growth Rate

The Vancouver WA housing market is seeing growth because Portland has been expanding rapidly for the past few years. After growing 2 percent per year since 2010, Portland slowed down to one percent growth in 2018.

That doesn’t mean the Portland real estate market isn’t expanding. People continue to move outward to cheaper areas, fueling demand for Vancouver WA real estate investment properties.

The Vancouver, Washington area is seeing slow but steady job growth of just under one percent. That’s enough to keep residents here but not enough to cause a massive influx in or a property bubble that could kill property values over the long-run.

5. The Rising Vancouver WA Rental Rates

Rents in the Vancouver WA housing market grew nearly two percent in 2018. Rental rates and occupancy rates are being driven by people slowly moving to the area from Portland and its Oregon suburbs. That’s why rental rates in Vancouver are going up faster than those in Portland.

6. The Fact that It Isn’t in Oregon

One point in favor of Vancouver WA real estate investment is that you can cater to residents of one of the largest Oregon real estate markets without owning properties in Oregon. For example, owning homes in the Vancouver WA housing market means you’re exempt to Oregon’s statewide rent control law.

Vancouver, Washington allows you to raise rents up to 10 percent with at least 45 days’ notice. Washington and Oregon are both tenant friendly, but Washington is slightly points lower than Oregon, and that’s a point in favor of it from a landlord’s perspective.

For example, Washington doesn’t have limits on security deposits. The 45 day notice to raise rents don’t affect the 3 days they have to vacate for non-payment of rent or ten day notice you can give for failure to comply with the terms of the lease.

7. The Tight, Affordable Vancouver WA Real Estate Market

One trend we’re seeing in the Vancouver WA real estate market is gentrification. Cheap and run-down buildings are torn down in favor of luxury condo and apartment buildings. There is very little housing stock in the “affordable” range, and that’s driving up rental rates for this market segment faster than the 2 percent growth seen across the market.

This means you could convert houses into multi-family units or create denser micro-apartments and see significant returns on the investment. The Portland area is one of the few in the country where single resident occupancy and micro-apartments are both increasing and increasingly approved.

8. The Better Quality of Life

We’re not going to tell you to buy property in the Vancouver WA real estate market because of beautiful landmarks and famous festivals in the area. Vancouver WA real estate investment should be based on the market fundamentals. The area has expensive real estate, but the question is if it will retain its value.

We’d argue that a property in the Vancouver WA housing market will retain its value and appreciate more than Portland because this Portland suburb is not as accommodating to homeless people. This mirrors the problems in San Francisco.

There’s only so long people can trade off 100K Big Tech pay rates for living in a box and stepping around poop on their way to the way to a job.

This means the Vancouver area will benefit from local migration as people move across state lines for lower taxes, lower crime and a literally better environment.

9. The Better Tax Climate

Washington state pays most of the bills with a high sales tax. It doesn’t have an income tax. This means you won’t have to pay income taxes on the revenue from a property in the Vancouver WA real estate market.

A side benefit of the Vancouver WA real estate market is the flat property tax rate. The average tax bill is around one percent, slightly less than the national average.

10. The Sizable Student Market

The Vancouver WA real estate market has a sizable student market. Better yet, it isn’t limited to a single school. Washington State University Vancouver has more than three thousand students. It is the second largest Washington State campus. Gateway Seminary is home to around two thousand graduate students.

Vancouver WA Real Estate Investment

Maybe you have done a bit of real estate investing in Vancouver, WA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.

A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Vancouver WA real estate investment opportunity would be a key to your success. If you invest wisely in Vancouver WA rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

The less expensive the Vancouver WA rentals are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Vancouver, WA you should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Vancouver, WA. Vancouver, Washington is a steadily growing, appreciating real estate market. Investors here will profit from Portland’s mistakes while earning greater returns than if they invested in one of the more expensive housing markets in the region.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.

They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.

NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

The aim of this article was to educate investors who are keen to invest in Vancouver real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2019

Another good market to choose for investment is Rochester, NY. The Rochester housing market is stable, offering slow appreciation, affordable properties to outsiders and good returns. It has strong, long-term potential that is only buoyed if NYC collapses. And this is one of the reasons why being everything the Big Apple isn’t is in your favor.

The Rochester real estate market exists in an area formerly derided as the Rust Belt. It has seen a decline in population though leveled out, with many moving to the suburbs full of colonial homes instead of dense inner cities.

The population decline means that there is little new home construction, though older housing stock is torn down. This means that there will not be a wave of new construction to meet an increase in demand, while removal of blighted areas and deteriorating housing stock is abandoned.

The other best place to invest in real estate is Frisco, Texas. Frisco is a rapidly growing and appreciating suburb in the Dallas-Fort Worth area. It is so desirable that it attracts locals relocating to the area in addition to those moving to Texas thanks to its lower tax burden, cheaper real estate and improved quality of life.

If you’re considering Frisco real estate investment, one point in favor of this area over other Dallas suburbs is the diversified real estate market. Frisco was one of the local pioneers in mixed use developments, walkable neighborhoods modeled off older downtown areas.

This is attractive to Millennials. Frisco is also rapidly building multi-family housing, though this is barely keeping up with demand. Yet the Frisco real estate market retains a large number of single family homes.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Student market
https://en.wikipedia.org/wiki/Gateway_Seminary
https://en.wikipedia.org/wiki/Washington_State_University_Vancouver

It’s not Oregon
https://www.npr.org/2019/02/27/698509957/oregon-set-to-pass-the-first-statewide-rent-control-bill
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters/
https://www.cityofvancouver.us/citycouncil/page/ordinances-protecting-vulnerable-renters

Better Tax Climate
https://www.kuow.org/stories/washington-and-oregon-have-tax-who-wins/
https://smartasset.com/taxes/washington-property-tax-calculator

Growth rate
https://www.oregonlive.com/pacific-northwest-news/2019/04/portland-areas-population-growth-is-losing-steam-census-numbers-show.html

Better quality of life
https://www.kptv.com/news/portland-s-homeless-population-spreading-to-the-suburbs-folks-are/article_20d65cac-db57-11e9-a13e-47af9259186c.html
https://www.kgw.com/article/news/local/homeless/our-city-has-become-a-cesspool-police-union-president-blames-mayor-for-homeless-problems/283-574760140

Rising rental rates
https://www.columbian.com/news/2019/feb/27/rising-vancouver-rents-outpacing-portlands/

Tight affordable real estate market
https://www.columbian.com/news/2017/jun/08/report-rental-rates-rising-out-of-reach/?fb_comment_id=1436478016399158_1436531999727093
https://slate.com/business/2013/07/sros-flophouses-microapartments-smart-cities-are-finally-allowing-the-right-kind-of-housing-for-the-poor-young-and-single.html
https://www.oregonlive.com/front-porch/2013/11/micro-apartments_of_200_to_300.html

High Demand
https://www.washingtonlawhelp.org/resource/city-of-vancouver-month-to-month-tenants-new-right-to-60-day-notice-to-vacate?ref=PD3kp
https://www.oregonmetro.gov/urban-growth-boundary
https://www.cityofvancouver.us/ced/page/vancouver-urban-growth-area

Economics and renting
https://www.rentcafe.com/average-rent-market-trends/us/wa/vancouver/
https://www.bestplaces.net/economy/city/washington/vancouver

Market Prices, Trends & Forecasts
https://www.zillow.com/Vancouver-wa/home-values
https://www.redfin.com/city/18823/WA/Vancouver/housing-market
https://www.realtor.com/realestateandhomes-search/Vancouver_WA/overview
https://www.movoto.com/vancouver-wa/market-trends
https://www.neighborhoodscout.com/wa/vancouver/real-estate
https://www.realtytrac.com/statsandtrends/wa/clark-county/vancouver

The post Vancouver WA Housing Market: Prices, Trends, Forecast 2023 appeared first on Norada Real Estate Investments.

How is The Chandler Real Estate Market 2019?

Buying real estate in Chandler can be a worthy investment opportunity. If you are looking at investing in the Chandler real estate market as a potential investment opportunity, you must read till the end. Chandler, Arizona is a suburb of Phoenix. It is often overshadowed by the largest city in the Valley of the Sun. However, the Chandler real estate market provides many of the advantages of Phoenix with few of the disadvantages.

Chandler is bordered by the cities Tempe, Mesa and Phoenix. The Gila River Indian Community lay on its southern border. Chandler is home to about a quarter million people. There are not really suburbs to Chandler, because it is a suburb of Phoenix surrounded by other cities of similar size. However, Chandler has a number of points in its favor that make it a better choice for investors than surrounding cities.

Annual real estate appreciation rates in Chandler have been quite strong for the past few years. In the last twelve months, the investors in Chandler have found good returns on their investments. Is Chandler going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a deep look at the latest Chandler housing market trends and find out the prospects of investing in the Chandler real estate in 2019.

Chandler Real Estate Market Forecasts 2019 & 2020

According to Zillow, the median home value in Chandler is $317,400. Chandler home values have gone up 5.8% over the past year and Zillow's Chandler real estate market prediction is that the prices will rise 2.4% by June 2019. The median list price per square foot in Chandler is $175, which is higher than the Phoenix-Mesa-Scottsdale Metro average of $163.

The median price of homes currently listed in Chandler is $349,900 while the median price of homes that sold is $280,000. The median rent price in Chandler is $1,650, which is higher than the Phoenix-Mesa-Scottsdale Metro median of $1,595.

Here is the Chandler real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 2.4% till June 2020.

Chandler Real Estate Market Trends

Chandler real estate market trends indicate an increase of $12,512 (4%) in median home sales and a 3% rise in median rent per month over the past year. The average price per square foot for this same period rose to $177, up from $170. Trulia has 1,260 resale and new homes for sale in Chandler, AZ, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

The median sales price for homes in Chandler for May 1 to Jul 31 was $335,000 based on 1,425 home sales. Average price per square foot for Chandler was $177, an increase of 4% compared to the same period last year. The median rent per month for apartments in Chandler for Jun 28 to Jul 28 was $1,795.

As per the real estate company named Redfin, the Chandler housing market is very competitive. Homes in Chandler receive 2 offers on average and sell in around 36 days. The average sale price of a home in Chandler was $330K last month, up 6.8% since last year.

The average sale price per square foot in Chandler is $178, up 6.0% since last year. Homes typically receive 2 offers. Homes in the Chandler housing market sell for about 1% below list price and go pending in around 36 days.
Hot homes for sale in Chandler, Arizona can sell for around list price and go pending in around 15 days.

Chandler Housing Market Statistics

There are 1,184 homes for sale in Chandler, AZ ranging from $20K to $25.7M on Realtor.com. 119 of which were newly listed within the last week. Additionally, there are 347 Chandler rental properties, with a range of $10 to $6.2K per month.  The median list price of homes in Chandler, AZ was $349.9K in June 2019, trending up 6.1% year-over-year. The median listing price per square foot was $178.

The median list price in Chandler, AZ is $438,950 on Movoto.com. The median list price in Chandler went up 3% from July to August. Chandler's home resale inventories is 462, which increased 3 percent since July 2019. The median list price per square foot in Chandler is $181. July 2019 was $180. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in August.

Chandler, AZ Single Family And Multi-Family Homes

Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

As per the real estate company called Neigborhoodscout.com, the median house price in Chandler, AZ is $353,148, which indicates that home prices in Chandler are well above the national average for all cities and towns in the United States.

Single family detached homes are the single most common housing type in Chandler, accounting for 71.59% of the city's housing units.  Three and four bedroom dwellings are the most common building size and type in single-family detached homes in Chandler.

Other types of housing that are prevalent in Chandler include large apartment complexes or high rise apartments, duplexes and a few row houses.

Currently, there are 755 single family homes for sale in Chandler, AZ on Zillow. Additionally, there are 255 single family homes for rent in Chandler, AZ. Under potential listings, there are about 2 Foreclosed and 103 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Chandler, AZ Foreclosures And Bank Owned Homes 2019

According to Zillow's statistics, in Chandler 0.1 homes are foreclosed (per 10,000). This is lower than the Phoenix-Mesa-Scottsdale Metro value of 0.5 and also lower than the national value of 1.2. The percent of delinquent mortgages in Chandler is 0.3%, which is lower than thenational value  of 1.1%.

With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.

The percent of Chandler homeowners underwater on their mortgage is 6.9%, which is lower than Phoenix-Mesa-Scottsdale Metro at 7.1%.

There are currently 124 properties in Chandler, AZ that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 591. In June 2019, the number of properties that received a foreclosure filing in Chandler, AZ was 145% higher than the previous month and 40% lower than the same time last year.

Best Places To Buy Real Estate In Chandler, AZ

If you are looking to buy real estate in Chandler, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Chandler real estate and you should be able flip it for a lump sum profit.

When looking to invest in Chandler real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Chandler investment property should be low. The neighborhoods in Chandler must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.

There are 21 neighborhoods in Chandler. There are 53 elementary schools, 31 middle schools, 27 high schools and 20 private & charter schools.

Some of the best neighborhoods in Chandler, Arizona are Sun Lakes, Sun Groves and The Octotillo. Sunwest Trails has a median listing price of $515K, making it the most expensive neighborhood. Sunbird Golf Resort is the most affordable neighborhood in Chandler, with a median listing price of $228.9K.

Here are the 10 best neighborhoods in Chandler to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).

Should You Invest In Chandler Real Estate In 2019?

Is it worth buying a house in Chandler, AZ? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Chandler is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Chandler housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Chandler but we have collected ten evidence based positive things for those who are keen to invest in the Chandler real estate in 2019.

Investing in Chandler real estate will fetch you good returns in the long term as the home prices in Chandler have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Chandler real estate market which can help investors who are keen to buy an investment property in this city.

1. The Relative Affordability

The median home value in the Chandler real estate market is 230,000 dollars. That is roughly in line with the national average. However, that’s somewhat cheaper than the average house in Phoenix. Chandler is a bargain compared to the expensive luxury homes in Camelback in southern Phoenix and Scottsdale.

For example, the cost of the average home in Scottsdale is approaching half a million dollars. However, there aren’t a lot of opportunities to snap up a Chandler real estate investment property at a deep discount.

The number of homes that are delinquent on their mortgage is half the national average, and a lower percentage has negative equity than average. This is mostly due to the excellent job market in the Chandler area.

2. The Heavy Demand

The Phoenix area is growing rapidly. The area is currently hot, but it isn’t too hot. Properly valuations in the Chandler real estate market grew five percent last year. They’re expected to appreciate another two percent in 2020.

3. The Geographical Constraints

Property values in the Chandler housing market are buoyed by the geographic constraints that prevent them from simply building out. They can’t build south because of the Gila River Indian Community. They can’t expand north or west because that area is already developed.

And because many are trying to remain close to the Sky Harbor International Airport or jobs in downtown Phoenix, the only options are denser development on what open land remains or expensive tear-down and rebuild infill development. This will bolster the value of existing Chandler real estate investment properties.

4. The High Paying, High Tech Jobs

While many people buy homes in the Chandler housing market to be in easy reach of Phoenix employers, the Chandler area has a strong job market itself. For example, a good Chandler real estate investment would be an apartment building or duplex in walking distance of the Intel, NXP Semiconductor or PayPal offices.

Other good paying high tech employers in the area include Microchip Technology and Northrup Grumman. This is aside from major employers like Wells Fargo and the regional medical center.

All of this has resulted in a median household income 20,000 dollars higher than the state average, attracting many people to the Chandler area.

5. The Student Market

The Chandler housing market is home to a decently sized student population, but its economy isn’t dependent on the rise and fall of one school. The Chandler-Gilbert Community College system caters to local students. Western International University and Ottawa University have campuses here.

The massive Arizona State University campus in Tempe is only fourteen miles away. An affordable Chandler real estate investment property that can advertise a ten minute drive to that campus will see a steady stream of students signing up.

6. The Snowbird Market

Chandler real estate investment opportunities go well beyond the student market, tourists, business executives and those who don’t want to commit to a mortgage payment. The Chandler real estate market contains several master-planned active adult communities catering specifically to retirees.

The Sun Lakes area contains five such adult-only communities. This is aside from the number of snowbirds that rent seasonally in the Chandler real estate market.

7. The Landlord Friendly Laws at the State Level

Arizona is landlord friendly compared to states like California. The state is notable for becoming more landlord friendly. However, the state has been working on laws that mean landlords don’t have to store perishable items while waiting for a tenant to pick up their stuff.

Nor do they have to hold on to items without material value. If it looks like the person has moved out, the landlord can take the unit back over. Eviction is seamless, whether someone violated the lease or failed to pay the rent.

This helps properly owners guarantee the returns they expected to get from an Chandler real estate investment property.

8. The Balmy Climate for Short Term Rentals

The state of Arizona passed laws that limit what cities like Chandler can do to regulate short-term rentals. This makes it much easier to rent out a Chandler real estate investment property via short term rentals.

The city has been cracking down on informal event centers. For example, you can rent a house to people who are staying there quietly for a week, but wild parties or events like weddings will be seen as a violation of the city code.

Violations like these in the Chandler housing market can result in a fine up to 2500 dollars. Note that an HOA can ban a short-term rental in the Chandler housing market even if the city can’t, so know whether or not there is an HOA and whether or not it limits short-term rentals before you assume it can be rented out as such.

9. The Strong ROI on Chandler Real Estate

The median rent in Chandler hovers around 1700 dollars a month. This is about a hundred dollars more per month than the median rent for the Phoenix metro area. The rent you’d receive for a single family Chandler real estate investment would of course be higher.

10. The Relatively Low Tax Burden

The total tax burden faced by Arizona residents is thirty-second worst in the nation. That’s roughly average. It is also about twenty places better than California. That’s simply an argument to invest in Arizona instead of California.

If you’re considering buying a property in the Chandler housing market, the low property tax rate is a major point in its favor. The state and local property taxes total about 1100 dollars a year. The average property taxes paid as a percentage of home value is two thirds of a percent.

Chandler Real Estate Investment

Maybe you have done a bit of real estate investing in Chandler, AZ but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.

A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Chandler real estate investment opportunity would be a key to your success. in If you invest wisely in Chandler real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

The less expensive the Chandler investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Chandler, you should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Chandler, AZ. The Chandler area offers strong market fundamentals in addition to a favorable tax and regulatory climate.

This is in addition to a plethora of high paying jobs that attract new residents and niche markets that are willing to pay higher rents in exchange for convenience and proximity to amenities.

Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Chandler, AZ is your ability to find great real estate investments in that area.

According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.

We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

The aim of this article was to educate investors who are keen to invest in Chandler real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2019

Another sizzling market to choose for investment is the Scottsdale real estate market. You’ll see better than average returns on the average Scottsdale real estate investment property, and its value will be bolstered by a variety of factors. This makes Scottsdale a better choice for investors than Phoenix.

The Scottsdale housing market has a more diverse rental market than just catering to those who can’t afford to buy a single family home. For example, the area is famous for its snowbirds, retirees who come for the winter before returning home.

Some of them buy a one or two bedroom home to live in half the year. Others rent such properties. While many live in Sun City and other age-restricted communities, others choose to rent elsewhere in the Scottsdale real estate market.

The other best place to invest in real estate is Reno, NV. The Reno real estate market is ideal for investors for a number of reasons. Supply is limited, and demand is growing. Rental rates are driven by several competing markets that aren’t going to slow down any time soon.

Forget owning a couple of condos in Las Vegas and invest in a more affordable, stable real estate market like Reno. About 40 percent of those living in the Reno housing market rent. The fact that many are tourists or students who are almost immune to economic pressures guarantees decent rental rates on a Reno real estate investment property.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Geographic constraints
https://en.wikipedia.org/wiki/Chandler,_Arizona

High paying high tech jobs
https://en.wikipedia.org/wiki/Chandler,_Arizona#Top_employers
http://www.city-data.com/city/Chandler-Arizona.html

Student market
https://en.wikipedia.org/wiki/Chandler,_Arizona#Post-secondary

Landlord friendly                                                                                          https://www.avail.co/education/laws/arizona-landlord-tenant-laws
https://www.american-apartment-owners-association.org/property-management/latest-news/another-state-goes-landlord-friendly

Short term rentals
https://www.azcentral.com/story/news/local/phoenix/2019/03/27/5-things-know-if-you-have-short-term-rentals-your-neighborhood/3280081002
https://www.azcentral.com/story/news/local/chandler/2018/10/26/arizona-law-short-term-home-rentals-creates-consequences-cities-neighbors-airbnb-vrbo/1444575002

Affordability
https://livability.com/az/chandler

Strong ROI
https://www.zillow.com/chandler-az/home-values

Snowbird
https://www.sunlakesofarizona.com

Tax
https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494
https://taxfoundation.org/state/arizona

Housing Market Data, Trends & Statistics
https://www.redfin.com/city/3104/AZ/Chandler/housing-market
https://www.movoto.com/chandler-az/market-trends
https://www.trulia.com/real_estate/Chandler-Arizona
https://www.neighborhoodscout.com/az/chandler
https://www.realtor.com/realestateandhomes-search/Chandler_AZ/overview
https://www.realtytrac.com/statsandtrends/az/maricopa-county/chandler

The post Chandler Housing Market 2019: Home Prices, Trends & Forecasts appeared first on Norada Real Estate Investments.

Real estate can be a worthy investment opportunity. With research, a plan and the right price, just about anyone can be a real estate investor. If you are looking at investing in the Tulsa real estate market as a potential investment opportunity, you must read till the end.

Tulsa is often ignored as the heart of flyover country, but that would be a mistake on many counts. Smaller, stable markets have many points in their favor that make them a better choice than the “hot” markets that get more attention.

Tulsa is the second largest city in the state of Oklahoma; only Oklahoma City is larger. The city itself is home to around four hundred thousand people. The Tulsa housing market is much larger than this. The Tulsa metropolitan area is home to around a million people.

Include the more distant suburbs and small towns around it, and the general area is home to 1.3 million. This makes the Tulsa real estate market home to a quarter of the state’s population. Real estate is a good investment in Tulsa for many reasons like interest rates and affordability being two important ones.

Besides affordability, a key component to the success of Tulsa’s market is stability. Is Tulsa going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Tulsa housing market trends and find out the prospects of investing in the Tulsa real estate in 2019.

Tulsa Real Estate Market Forecasts 2020

The median home value in Tulsa is $120,900 on Zillow. Tulsa home values have gone up 1.3% over the past year and Zillow's Tulsa real estate market prediction is that the prices will rise 0.4% by May 2020. The median list price per square foot in Tulsa is $99, which is lower than the Tulsa Metro average of $104.

The median price of homes currently listed in Tulsa is $198,000 while the median price of homes that sold is $137,300. The median rent price in Tulsa is $950, which is lower than the Tulsa Metro median of $1,092.

Here is the Tulsa real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 0.4% till May 2020.

Tulsa Housing Market Forecast 2019 – 2021

The Tulsa housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Tulsa housing market trend prediction is 79%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Tulsa, OK is 79% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Tulsa, Oklahoma Real Estate Forecast.

Tulsa Real Estate Market Trends

Tulsa real estate market trends show a 0% week-over-week rise in average listing price and a 2% rise in median rent per month. Trulia has 2,388 resale and new homes for sale in Tulsa, OK including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

The median sales price for homes in Tulsa for Apr 4 to Jul 3 was $157,000 based on 1,144 home sales. Average price per square foot for Tulsa was $93, a decrease of -1% compared to the same period last year. The median rent per month for apartments in Tulsa for Jun 5 to Jul 5 was $965.

As per the real estate company named Redfin, the Tulsa housing market is somewhat competitive. The average sale price of a home in Tulsa was $169K last month, up 7.0% since last year. The average sale price per square foot in Tulsa is $92, up 3.4% since last year. Some homes get multiple offers.

Homes for sale in the Tulsa housing market sell for about 2% below list price and go pending in around 25 days. Hot homes for sale in Tulsa, OK can sell for around list price and go pending in around 6 days.

There are 2,579 homes for sale in Tulsa, OK ranging from $900 to $6.5M on Realtor.com. 192 of which were newly listed within the last week. Additionally, there are 416 Tulsa rental properties, with a range of $350 to $4.5K per month. Data by Realtor.com shows that in June 2019 the housing market in Tulsa, OK was a seller’s market, which means there were roughly more buyers than there were active homes for sale.

In June 2019, the median list price of homes in Tulsa, OK was $204.9K, trending up 17.2% year-over-year. The median listing price per square foot was $97. The median sale price was $165K. Homes in Tulsa, OK sold for 1.35% below asking price on average in June 2019. On average, homes in Tulsa, OK sell after 57 days on the market. The trend for median days on market in Tulsa, OK has gone up since last month, and slightly down since last year.

The median list price in Tulsa, OK is $149,900 on Movoto.com. The median list price in Tulsa went up 43% from June to July. Tulsa's home resale inventories is 3, which increased 200 percent since June 2019. The median list price per square foot in Tulsa is $120. June 2019 was $64. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in July.

Tulsa, OK Single Family And Multi-Family Homes

Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

As per the real estate company called Neigborhoodscout.com, the median house price in Tulsa, OK is $132,080, which indicates that home prices in Tulsa are well below the national average for all cities and towns in the United States. Single family detached homes are the single most common housing type in Tulsa, accounting for 64.30% of the city's housing units.

Other types of housing that are prevalent in Tulsa include large apartment complexes or high rise apartments ( 24.26%), duplexes, homes converted to apartments or other small apartment buildings ( 6.37%), and a few row houses and other attached homes ( 3.25%).

Renters dominate Tulsa's housing market, and most live in three of four bedroom dwellings, chiefly found in single family detached homes.

Currently, there are 1,367 single family homes for sale in Tulsa, OK on Zillow. Additionally, there are 349 single family homes for rent in Tulsa, OK. Under potential listings, there are about 53 Foreclosed and 222 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Tulsa, OK Foreclosures And Bank Owned Homes 2019

According to Zillow, in Tulsa 1.9 homes are foreclosed (per 10,000). This is greater than the Tulsa Metro value of 1.8 and also greater than the national value of 1.2. The percent of delinquent mortgages in Tulsa is 1.4%, which is higher than the national value of 1.1%.

With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Tulsa homeowners underwater on their mortgage is 10.0%, which is higher than Tulsa Metro at 9.4%.

There are currently 613 properties in Tulsa, OK that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,014. In June 2019, the number of properties that received a foreclosure filing in Tulsa, OK was 26% lower than the previous month and 22% lower than the same time last year.

Home sales for May 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Tulsa was $0. The median sales price of a foreclosure home in Tulsa was $0, or 0% higher than non-distressed home sales.

Tulsa Home Prices And Real Estate Appreciation 2019

Tulsa real estate appreciation rates have been tracking above average for the last ten years. The cumulative appreciation rate over the ten years has been 15.72%, which ranks in the top 50% nationwide.

This equates to an annual average Tulsa real estate appreciation rate of 1.47%. During the latest twelve months, Tulsa's real estate appreciation rate, at 5.08%, has been at or slightly above the national average.

In the latest quarter, Tulsa's real estate appreciation rate has been 1.26%, which annualizes to a rate of 5.15%. The above statistics on real estate appreciation in Tulsa, OK were taken from NeighborhoodScout.com.

You can visit their page for more information. Relative to Oklahoma, their data showsthat Tulsa's latest annual real estate appreciation rate is lower than 60% of the other cities and towns in Oklahoma.

Despite steady real estate appreciation, Tulsa remains an intriguing destination for those that can’t afford most other markets. Realtor.com ranked Tulsa as one of the top 10 housing markets in 2018. 2019 is a great time to buy real estate in Tulsa.

Tulsa was the most affordable city on its list, with the median home price well below the national average. Tulsa real estate appreciation rates have remained historically low in the mid-4 percent range.

At the end of 2018, Tulsa real estate continued to appreciate with the rest of the country. Over course of  last three years, Tulsa homes prices have been continuously appreciating by as much as 15% year-over-year.

Best Places To Buy Real Estate In Tulsa, Oklahoma

If you are looking to buy real estate in Tulsa, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Tulsa real estate and you should be able flip it for a lump sum profit.

When looking to invest in Tulsa real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Tulsa investment property should be low. The neighborhoods in Tulsa

must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.

There are 121 neighborhoods in Tulsa. There are 183 schools in Tulsa, OK. There are 85 elementary schools, 30 middle schools, 20 high schools and 48 private & charter schools.

Some of the best neighborhoods in Tulsa, Oklahoma are South Peoria, Brookside and Maple Ridge Historic District. Maple Ridge Historic District has a median listing price of $599K, making it the most expensive neighborhood. Cooper is the most affordable neighborhood in Tulsa, Ok with a median listing price of $78.5K.

As per Trulia's data, the most popular neighborhoods to invest in real estate in Tulsa are Maple Ridge, Lynn Lane, Turner Park, Minshall Park and Folton.

Here are the 10 best neighborhoods in Tulsa to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).

Should You Invest In Tulsa Real Estate In 2019?

Is it worth buying a house in Tulsa, OK? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Tulsa is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Tulsa housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Tulsa but we have collected ten evidence based positive things for those who are keen to invest in the Tulsa real estate in 2019.

Investing in Tulsa real estate will fetch you good returns in the long term as the home prices in Tulsa have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Tulsa real estate market which can help investors who are keen to buy an investment property in this city.

1. Affordability

The median home price is roughly 150,000 dollars. You can buy several Tulsa real estate investment properties for the price of the average home in Austin or Miami.

This is even well below the national median home price of around 230,000 dollars. On top of this, there are neighborhoods where you can find single family homes for well under a hundred thousand dollars.

2. The Opportunity to Find Bargains

The Tulsa real estate market is somewhat healthy, but there are a number of opportunities. For example, ten percent of homes have negative equity, two percentage points higher than the national average.

The mortgage delinquency rate is 1.4 percent, a third higher than the national average. This creates a sizable population of distressed sellers who will sell a home for below market rates.

3. The Return on Investment

The median rent in the Tulsa real estate market is around 800 dollars a month. The rent on single family homes in the Tulsa housing market is higher than this.

The average home rents for 1000 to 1200 dollars a month based on where it is located. Rents are higher in the suburbs than in downtown Tulsa. On top of this, rental rates are rising at more than two percent a year.

4. The Sizable Tulsa Rental Market

The average salary is around 45,000 dollars. This makes the average 150K home too expensive for many residents. About a third of the population rents according to Census data, a relatively high number given the low median price of homes in the area.

However, the rental market is made more expensive by the large population of students that are not nearly as price sensitive as families with children.

The growth of the universities in the area and the fact that Millennials that choose to stay after graduation tend to rent explain why the renter fraction has been slowly increasing over the past ten years.

5. The Massive Student Market

The other major population of renters in Tulsa is the many college students in the area. The University of Tulsa has more than four thousand students. Many come here from across the Midwest to attend its law school.

Others come to attend Oral Roberts University. ORU is actually larger than the state university. It is home to more than five thousand students. Oklahoma State University has a research campus in Tulsa, as well.

The Tulsa real estate market also hosts around 1500 students at the Spartan School of Aeronautics. All of this creates the opportunity to hold a diverse Tulsa real estate investment portfolio while catering to the student market.

This actually makes real estate aimed at students more stable, because the returns and overall property values aren’t tied to the popularity of the only school in town.

6. The Stable Local Economy

Tulsa’s unemployment rate is around three percent, somewhat below the national average. While the oil and gas industry is the largest single sector in the city, the Tulsa economy has diversified in recent years.

Aerospace, education, healthcare and manufacturing have all grown significantly. For example, the American Airline maintenance center is located here, as is a large flight school.

These growing sectors explain why unemployment in Tulsa has been falling steadily since 2010.

7. The Slow & Steady Appreciation

Those considering Tulsa real estate investment may be reluctant to buy property that could go down in value. After all, rural real estate markets can collapse when a local major employer shuts down.

Tulsa has a large, diverse economy that is quite stable. It is also attracting people from the rural areas who come to the city to work and enjoy amenities like top notch hospital and universities.

This is why Tulsa is adding thousands of people every year. Because the Tulsa real estate market isn’t hot enough to see a building boom, the end result is home prices rising a steady one percent or more per year. Tulsa home values increased 1.3 percent in 2018 and should rise one percent in 2019.

8. The Somewhat Friendly Environment for Property Owners

Oklahoma isn’t as landlord friendly as Texas, but it is more favorable to landlords than Kansas and Missouri. It offers better protection for landlords than most other Midwest states.

The state doesn’t have laws as to the notice someone requires for rent increases or grace periods. The relative lack of regulation means that most rules are spelled out in the lease. Another point in favor of the Tulsa housing market is that it is very easy to evict someone who isn’t paying their rent.

9. The Favorable Environment for Short-Term Rentals

There are several opportunities to profit from short term rentals with a Tulsa real estate investment property. One is offering short term rentals to people relocating to the area or in the area for events like college graduations.

Unlike many cities that have banned Airbnb or restricted it to existing tourist districts, Tulsa decided to allow short-term rentals as long as you pay a lodging tax.

The city is still debating restricting which properties in the Tulsa real estate market can be rented out, but properties with existing properties would be grandfathered in.

10. The Property Tax Rate

Property taxes in Oklahoma are among the lowest in the country, though the tax rate can vary wildly across the state. The average property owner in the Tulsa housing market pays around 1.1 percent per year in property taxes, roughly in line with the national average.

However, the much lower property valuations equal a far lower than average property tax bill. The state is a tax haven compared to Texas, too. You’d pay almost two percent in property taxes per year for an equivalent property in Texas.

Tulsa Real Estate Investment

Maybe you have done a bit of real estate investing in Tulsa, Oklahoma but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.

A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Tulsa real estate investment opportunity would be a key to your success. in If you invest wisely in Tulsa real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

The less expensive the Tulsa investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Tulsa, you should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Tulsa, OK. The Tulsa housing market offers affordable properties, decent rental rates, strong property rights, low taxes and a number of other benefits. You can’t afford to ignore this real estate market when searching for investment opportunities.

It is attractive to many who come here to learn and work, but it isn’t growing so fast that it suffers problems from that growth. These are a few reasons why you should seriously consider the Madison area for investment.

Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Tulsa, OK is your ability to find great real estate investments in that area.

According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.

We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

The aim of this article was to educate investors who are keen to invest in Tulsa real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2019

The other best place to invest in real estate is Madison, WI. The Madison, Wisconsin area sits in a sweet spot. It is larger than a small town and has the amenities of a big city, but it lacks the problems of some of the larger cities in the region.

It is attractive to many who come here to learn and work, but it isn’t growing so fast that it suffers problems from that growth. These are a few reasons why you should seriously consider the Madison area for investment.

The demand for Madison real estate investment properties by renters is higher than you’d expect for several reasons. One is that the Madison housing market costs more than the state average due to demand.

The second is that the large population of student renters in the Madison real estate market drives up rents, forcing many renters to save up longer before they can buy a home.

There are also Millennials who work here after graduation but are reluctant to commit to buying a house, so they continue to rent. This is why less than 60 percent of Madison residents are home owners.

Another sizzling market to invest in real estate is Asheville, NC. The Asheville, North Carolina area is a stable, steadily growing housing market with several profitable rental markets investors would appreciate. It counterbalances this with a healthy job market and demographic momentum that will keep it going strong for years to come.

The lush forests around Asheville attract tourists for the hiking, rafting and other outdoor activities. The city has limited short-term rentals, but that doesn’t mean this isn’t an option if you own Asheville real estate investment properties.

For example, parts of the Asheville housing market are zoned as “resort”. You can rent these properties out on short term rental sites to your heart’s delight.

Properties that already had short term vacation rental permits are grandfathered into the existing rules, though you should verify the permit could transfer to you before buying it the Asheville real estate investment property. Towns outside of Asheville proper have their own rules, too, and are more relaxed in this regard.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Overview
https://en.wikipedia.org/wiki/Tulsa,_Oklahoma
http://properties.cbre.us/12222statefarm/tulsa-overview.html

Affordability
https://realestate.usnews.com/places/oklahoma/tulsa
https://realestate.usnews.com/places/oklahoma/tulsa

ROI
https://realestate.usnews.com/places/oklahoma/tulsa
https://www.trulia.com/real_estate/Tulsa-Oklahoma

Appreciation
https://www.zillow.com/tulsa-ok/home-values

Rental markets
https://en.wikipedia.org/wiki/Tulsa,_Oklahoma#Higher_education
https://www.deptofnumbers.com/rent/oklahoma/tulsa

Landlord friendly                                                                                      https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
https://www.landlordology.com/oklahoma-landlord-tenant-laws
https://www.tulsaworld.com/news/local/with-one-of-the-worst-eviction-rates-in-the-country/article_b8d8af14-a15f-53d9-b6dd-d8e936784ee2.html

Property tax rates
https://smartasset.com/taxes/oklahoma-property-tax-calculator
https://smartasset.com/taxes/texas-property-tax-calculator

The Stable Local Economy
https://www.deptofnumbers.com/unemployment/oklahoma/tulsa
https://realestate.usnews.com/places/oklahoma/tulsa/jobs

Short term rentals                                                                                                    https://kfor.com/2018/02/14/airbnb-voluntarily-adds-taxes-in-oklahoma
https://www.tulsaworld.com/news/city-to-begin-charging-airbnb-customers-percent-lodging-tax-on/article_beac3697-3381-5086-b3df-a6a00ade480f.html

Housing Market Data, Trends & Statistics
https://www.redfin.com/city/35765/OK/Tulsa/housing-market
https://www.movoto.com/tulsa-ok/market-trends
https://www.neighborhoodscout.com/ok/tulsa/real-estate
https://www.realtor.com/realestateandhomes-search/Tulsa_OK/overview
https://www.realtytrac.com/statsandtrends/ok/tulsa-county/tulsa

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