Norada Real Estate Investments

Archives for January 2023

Mortgage Interest Rates Forecast, Predictions, Trends 2023

by

Mortgage Interest Rates Forecast 2023: Will Rates Drop?

Mortgage rates have risen since the start of last year, reflecting investors' concerns that the economy is heating up and that the Fed will cool it down and reign in inflation. U.S. Treasury bond rates, which mortgage rates follow, encountered two tough patches this year: in late February, when Russia invaded Ukraine, and in mid-May when investors worried about poor consumer spending. Bond yields and mortgage rates declined throughout these times.

The Federal Reserve does not determine mortgage rates, and the central bank's choices do not have the same direct impact on mortgage rates as they have on other products such as savings accounts. The Fed does, however, determine borrowing costs for short-term loans in the United States by changing the federal funds rate. The federal funds rate can have an impact on 10-year Treasury bond yields, which are used to calculate most mortgage rates.

Essentially, the Fed does not set mortgage rates directly, but its policies can affect the financial markets and movers who do. Most analysts predict that mortgage rates will continue to rise given the inflation numbers continuing to increase. Since mortgage rates are tied closely to the performance of the 10-year Treasury market plus a margin to account for the additional riskiness of home lending. The long-term mortgage rates are expected to rise due to the overall turmoil in the world’s economy.

Also Read: How To Invest in Mortgage Estate Notes?

The mortgage market has seen a surge in activity with a 27.9% increase in mortgage applications in the week ending January 13th, 2023 according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. Refinance activity has risen 34% from the previous week, while the Purchase Index has increased by 25%. Despite this growth, refinance activity remains 81% lower than in the same week last year and purchase activity remains 35% lower.

Mortgage rates have now reached their lowest level since September 2022, about a percentage point below the peak rate last fall. The spring buying season is about to begin, and lower mortgage rates and an increase in the number of homes on the market will benefit first-time homebuyers. In the week ending January 20th, refinance applications rose 14.6% and home purchase applications rose 3.4%.

Despite the increase in demand, compared to last year, refinance activity is still 81% lower, and purchase activity is down 35%. The average 30-year fixed mortgage rate is currently 6.13% after steadily decreasing over the past three weeks. Forecasts for mortgage rates in 2023 vary, but December's inflation data suggests the Fed's efforts are working. The consumer price index could continue to fall, leading to a decrease in mortgage rates in 2023.

However, services inflation has increased, and the Fed has indicated that it will continue with rate hikes, though slower 25 basis point increases are expected. Despite uncertainties, economists are optimistic that the Fed will get inflation under control without causing a recession. Unemployment remains low, and there are more job openings than unemployed Americans, even as rate hikes are causing a contraction in economic activity and inflation begins to slow.

According to the U.S. Department of Housing and Urban Development, the national median family income for 2022 is $90,000, and the median price of an existing home sold in December was $366,900, according to the National Association of Realtors. Based on a 20% down payment and a 6.42 percent mortgage rate, the monthly payment of $1,840 is equal to 25% of the average family's monthly income.

The median family income was $79,900 a year ago, the median home price was $364,600, and the average mortgage rate was 3.4 percent. Buying a typical home back then required only 19% of a family's monthly income. In conclusion, mortgage demand has increased in recent weeks, but activity is still below last year's levels. Mortgage rates have reached their lowest level in months, and economists are optimistic about the future of the housing market.

Nevertheless, uncertainties remain and forecasts for 2023 vary. High mortgage interest rates imply you pay more interest, which can lower your purchasing power because you can't borrow as much money. This is because less money will be paid toward the principal (the amount borrowed) and more money will be paid toward the interest. Higher interest rates may assist in reducing the housing demand that is now driving up prices. If you're looking to buy a home, keep an eye on the local market and consider locking in your rate when you're ready to go.

It's also important to remember that just because you qualify for a certain amount doesn't imply you should borrow the maximum. Spend some time calculating how much house you can afford, including monthly payments. Work with your lender to calculate your monthly mortgage payment based on different loan amounts and interest rates.

Mortgage Rate Predictions 2023

Mortgage experts see rates decreasing over the coming year as the economy slows. Lawrence Yun, the chief economist of the National Association of Realtors, said he expects rates to fall to 5.5 percent by mid-2023. Fannie Mae sees the average rate of a 30-year fixed getting to 6.8% in 2023. Meanwhile, the prediction from Freddie Mac is 6.4%.

According to an updated prediction from the Mortgage Bankers Association as well, mortgage rates are also anticipated to fall in 2023, MBA economists also predicted that the United States would enter a recession in the first half of next year, owing to tighter financial conditions, reduced business investment, and slower growth globally. According to their mortgage rate prediction, this will raise the unemployment rate from 3.5% to 5.5% by the end of 2023.

“Next year will be particularly challenging for the US and global economies,” said Mike Fratantoni, chief economist and senior vice president for research and industry technology. “The sharp increase in interest rates this year – a consequence of the Federal Reserve’s efforts to slow inflation, will lead to an equally sharp slowdown in the economy, matching the downturn that is happening right now in the housing market.”

However, the good news for homeowners is that mortgage rates are projected to fall next year, according to Fratantoni. According to MBA, mortgage rates will conclude in 2023 at roughly 5.4%. According to Freddie Mac, the average rate for a 30-year fixed-rate mortgage is currently 6.94%. Fratantoni warned that mortgage rates will remain volatile in the coming months because the Fed is projected to continue raising interest rates this year.

According to the forecast, the Fed's continuous attempts to contain inflation will eventually limit homebuyer demand for mortgages in 2023. Mortgage origination volume is expected to decline to $2.05 trillion in 2023 from the $2.26 trillion expected in 2022, according to MBA. The forecast calls for purchase mortgages to drop by 3% next year, while refinance volume is anticipated to decline by 24%. The slowdown in housing activity and higher mortgage rates will cut the pace of home price growth, according to MBA. The forecast projects national home prices to be roughly flat in 2023 and 2024.

Will Fed Increase Interest Rates in 2023?

Fed officials predicted in December that rates would rise to just above 5% in 2023, then remain high throughout the year. However, incoming data will determine how high the Fed raises rates in 2023 and how long it keeps them there.

Let's look at the timeline for the Fed raising its benchmark interest rate in 2022. In March 2022, it raised its federal funds benchmark rate by 25 basis points to a range of 0.25% to 0.50%. The Fed raised interest rates for the first time since 2018. The Federal Reserve announced in early May 2022 that it would raise the federal funds rate target range to between 0.75% and 1%.

FOMC Meeting Date Rate Change (bps) Federal Funds Rate
Dec 14, 2022 +50 4.25% to 4.50%
Nov 2, 2022 +75 3.75% to 4.00%
Sept 21, 2022 +75 3.00% to 3.25%
July 27, 2022 +75 2.25% to 2.5%
June 16, 2022 +75 1.5% to 1.75%
May 5, 2022 +50 0.75% to 1.00%
March 17, 2022 +25 0.25% to 0.50%

The Federal Reserve has announced that it will sell Treasury and mortgage-backed securities in order to reduce the size of its balance sheet. To combat the sustained rise in inflation, the Fed raised the interest rate by 75 basis points, or 0.75%, in June 2022. This increase pushed the target rate range up from 1.5% to 1.75%, the largest single rate increase since 1994.

Following the release of the Consumer Price Index, which showed annual inflation of 9.1%, the Fed raised interest rates by 0.75% to a target range of 2.25% – 2.5% in July. Fed officials have stated that they want to see several month-to-month inflation rates annualize to less than 3% before becoming less hawkish and considering a pause in rate hikes. Treasury yields have risen across the yield curve, with the two-year rate rising by up to 21 basis points to around 3.78%, the highest since October 2007.

This is expected to reduce inflation, but it will also likely raise interest rates for borrowers. With inflation remaining stubbornly high, the Federal Reserve raised the target range for the federal funds rate by 0.75% in September, to 3%-3.25%. The Federal Reserve also released median forecasts, indicating that the target rate will be 4.4% by the end of 2022.

During its September meeting, the Fed raised the federal funds rate by 75 basis points to the 3%-3.25% range, the third consecutive three-quarter point increase, pushing borrowing costs to their highest level since 2008. It increased interest rates once more in November, bringing the federal funds rate to a range of 3.75% to 4%.

On Dec 14, 2022, the Federal Reserve raised the federal funds rate by 50 basis points, a reprieve from several other higher rate hikes in 2022. When you call a 50-basis-point rate increase a reprieve, you know the bar has been set low, but that's what seven Fed rate hikes in a year will do to a country. In order to keep inflation under control, the Federal Reserve raised the federal funds rate by 75 basis points four times in 2022, following two smaller increases.

Increasing the fed rate makes credit more expensive for consumers and businesses, and it is one of the Fed's only tools for combating inflation. The final increase for the year came on December 14, 2022 (+50 bps), mirroring the increase in May. The current federal funds rate is 4.25%-4.50%. It's unclear whether the Fed's interest-rate policy is working to keep inflation under control. However, there are signs that things are moving in the desired direction of the Fed in some areas, but not all.

The rate of inflation has slowed. According to the most recent Consumer Price Index report, the index, which measures price changes across a basket of consumer goods and services, fell 0.1% in December after increasing by the same amount in November. The index is up 6.5% over the last 12 months ending in December, down from 7.1% in November. It demonstrates that the hot inflation that persisted for much of last year is beginning to cool.

Mortgage Interest Rate Weekly Trends 2023

For Tuesday, January 31, 2023, the current average 30-year fixed mortgage rate is 6.44%, falling 3 basis points compared to this time last week. If you're in the market for a mortgage refinance, today's national 30-year fixed refinance rate is 6.47%, decreasing 8 basis points over the last seven days, according to the Bankrate’s national survey of large lenders.

Over the past 52 weeks, the benchmark 30-year fixed-rate mortgage has averaged 5.75 percent. A year ago, the 30-year fixed rate mortgage was 3.71 percent. Four weeks ago, the rate was 6.74 percent. The 30-year fixed-rate average for this week is 2.68 percentage points higher than the 52-week low of 3.76 percent.

Fed's actions don’t directly drive fixed mortgages’ moves, but the Fed does sway 10-year Treasury yields — which are strongly correlated to mortgage rates. Some analysts believe fixed mortgage rates will fall below 6 percent in 2023 as a recession looms.

3-month trend 30-Year Fixed Rates 15-Year Fixed Rates 10-Year Fixed Rates 5/1 ARM Rates
1/27/2023 6.43% 5.65% 5.63% 5.42%
1/20/2023 6.36% 5.63% 5.72% 5.41%
1/13/2023 6.46% 5.85% 6.01% 5.50%
1/6/2023 6.52% 6.06% 6.22% 5.50%
12/30/2022 6.59% 5.95% 5.89% 5.45%
12/23/2022 6.47% 5.83% 5.74% 5.45%
12/16/2022 6.60% 6.00% 6.11% 5.46%
12/9/2022 6.52% 5.91% 5.99% 5.45%
12/2/2022 6.67% 6.04% 6.07% 5.48%
11/25/2022 6.81% 6.16% 6.26% 5.51%
11/18/2022 6.84% 6.22% 6.35% 5.54%
11/11/2022 7.24% 6.46% 6.56% 5.62%
11/4/2022 7.23% 6.45% 6.67% 5.53%
10/28/2022 7.20% 6.43% 6.67% 5.55%
10/21/2022 7.20% 6.43% 6.59% 5.44%
10/14/2022 7.08% 6.28% 6.33% 5.37%
10/7/2022 6.89% 6.07% 6.12% 5.34%
9/30/2022 6.82% 5.97% 6.07% 5.20%
9/23/2022 6.43% 5.66% 5.78% 4.84%
9/16/2022 6.19% 5.51% 5.61% 4.63%
9/9/2022 6.08% 5.33% 5.46% 4.52%
9/2/2022 5.95% 5.18% 5.25% 4.42%

(Source: Bankrate.com)

Sources

  • https://www.mba.org/
  • https://www.bankrate.com/mortgages/rate-trends/
  • https://www.bankrate.com/mortgages/mortgage-rates/
  • https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/
  • https://themortgagereports.com/32667/mortgage-rates-forecast-fha-va-usda-conventional

Austin Housing Market: Prices, Trends, Forecast 2023

by

Austin Housing Market

Data by ABoR. Forecast by other sources.

The Austin Housing Market is Cooling Off

Austin's housing market is shifting. The market reflects what is happening in other major cities across the country. After reaching an all-time high of approximately $550,000 between April and May of last year, the median home price in Austin decreased to $537,000 in June. This trend indicates a slowdown in one of the nation's most overheated housing markets at the time. Zillow data indicates that Austin's median home price has continued to drop for six consecutive months.

The buyers have greater negotiating power than at any time since the pandemic. Properties take longer to sell and are being acquired for less than the initial list price on average. The market has just now gotten up to three months of housing inventory (2.7 months as of December), which is still short of the 6 to 6.5 months of inventory needed to be considered a healthy market. Austin home values are predicted to decline through 2023 amid continued skyrocketing interest rates and declining housing prices.

According to Goldman Sachs, Austin, Texas is one of the four cities in the United States that will likely see declines of over 25 percent in its housing market. These declines would be similar to those witnessed during the Great Recession in 2008. The decline is being attributed to the city's overheated housing market, which became detached from fundamentals during the COVID-19 pandemic housing boom. Austin has been previously named the second-most overpriced housing market in the nation and is considered the largest housing bubble in America. It shows that the localized risk of higher delinquencies for mortgages originating in 2022 or late 2021 still exists.

What's happening: According to the latest Central Texas Housing Market Report provided by the Austin Board of REALTORS®, in 2022, the median home price in the Austin-Round Rock MSA hit a new yearly record of $503,000. Despite this record, the housing market continued to tilt in favor of buyers as home sales decreased 18.3% to 33,547 homes sold last year and inventory climbed, with properties remaining on the market for 31 days, 11 days longer than in 2021.

  • In 2022, the median price in the MSA rose 11.4% to $503,000.
  • Sales dollar volume dipped 9.8% to yield a $21,018,159,929 impact on the Austin-area economy.
  • New listings stayed flat, and the year ended with 45,949 homes listed as pending sales dropped 24.2% to 31,633 homes.
  • In the month of December, closed listings across the MSA declined 31.5% to 2,435 year-over-year as sales dollar volume decreased 36.1% to $1,357,155,494.
  • The median sales price dropped 3.7% to $457,426.
  • New listings declined 15.1% to 1,828 listings, active listings skyrocketed 275.4% to 7,493 listings, and pending sales dropped 22.8% in December to 1,949 sales.
  • Last month, homes spent an average of 73 days on the market, 47 more compared to December 2021.

Real Estate Trends in Travis County – December 2022

Austin is the capital city of the U.S. state of Texas, as well as the seat and largest city of Travis County, with portions extending into Hays and Williamson counties. Data by ABoR revealed that in Travis County, residential home sales fell 23.8% to 15,705 in 2022, while dollar volume fell 16.1% to $11,556,937,031. The median price of residential properties rose 10.6% annually to $575,000.

In the previous year, new listings declined by 3.6% to 22,105, while active listings increased by 121.9% to 2,718 and pending sales decreased by 27.6% to 14,919. In December 2022, residential property sales in Travis County declined 44.9% to 984 purchases, while dollar volume decreased 47.8% to $649,319,748.

In addition, the median price declined 2.8% annually to $520,000. During the same time period, new listings decreased by 16.5% to 825, while active listings increased by 250.6% to 3,166 and pending sales decreased by 27.6% to 873. Monthly housing inventory increased by 1.9 months annually to 2.4 months.

Here are the housing market trends based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. In Dec 2022, the median listing home price in Travis County, TX was $575K, trending up 8.5% year-over-year. Travis County, TX was a buyer's market in Dec 2022, which means that the supply of homes is greater than the demand for homes.

  • There are 29 cities in Travis County.
  • Barton Creek has a median listing home price of $3.5M, making it the most expensive city.
  • Hornsby Bend is the most affordable city, with a median listing home price of $349K.
  • The median listing home price in Austin, TX was $599K, trending up 8.9% year-over-year.
  • There are 92 neighborhoods in Austin.
  • Zilker has a median listing home price of $1M, making it the most expensive neighborhood.
  • Tech Ridge is the most affordable neighborhood, with a median listing home price of $425K.
According to a new study, Austin homes are among the most overvalued in the United States. According to the study conducted by researchers from Florida Atlantic University and Florida International University, homebuyers in Austin are paying nearly 51% more than expected for houses. The only metro area where homebuyers pay a higher premium is Boise, Idaho, where homebuyers pay an astronomical 81 percent more.

When Zillow released its latest list of the top ten hottest housing markets in the United States, Austin was no longer ranked number one. Zillow previously ranked Austin as the hottest housing market but that ranking has slipped several spots for 2022. It ranks Austin at #10 now. According to Zillow's 2022 forecast, Tampa is the year's hottest housing market, with the city expected to top the list due to its relative affordability and high job growth.

Austin Housing Market Forecast 2023

What are the Austin real estate market predictions for 2023? Despite cooling off from its peak. Austin will remain a seller's market despite nationwide inflation and rising interest rates. The prices continue to rise across Austin MSA. The main reason is strong in-migration and a rapidly recovering local economy. According to the Census Bureau’s 2021 population estimates, Austin's population is increasing by 146 people every day. This type of expansion places immediate and substantial demands on infrastructure, especially housing.

Austin's rapidly expanding economic industry is driving more people into the city which is increasing the housing demand. A number of reasons have affected the present situation of the Austin housing market, one of which is the high migration of firms and persons relocating to the city from Texas and out-of-state, which has led to a robust and varied economy that attracts people seeking opportunity.

A surge of people moving in, combined with rapid population growth and low mortgage interest rates, has turned Austin and its surrounding area into a sellers' market. Austin’s engine of job and population growth is not projected to slow down anytime soon—the biggest drivers of residential real estate demand. Its economy has diversified and strengthened over the past two decades.

Companies like Google and Tesla are moving operations to Austin. The software giant Oracle has also relocated its headquarters here. As more companies move here, that means more people looking for homes, and the city is also attractive to outside investors. With a steady influx of job creation in the pipeline, the housing market will continue to post strong numbers well into 2022. Big companies moving here will also play into what happens to the housing market.

With an all-time high in corporate relocations, the housing demand is way up and the supply side cannot match up. All these factors indicate that this region has a higher probability of withstanding economic downturns due to the current pandemic. To determine the best local real-estate markets in the U.S., WalletHub compared 300 cities of varying sizes across 24 key indicators of housing-market attractiveness and economic strength. They looked at factors like median home-price appreciation to home sales turnover rate to job growth.

The city of Austin's real estate market came in at number 7 overall and 3rd among large cities. Boise was found to be the best market in the nation, followed by Seattle, Frisco, Nashville, and Gilbert in the top five. Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years.  The typical value of homes in Austin is $619,096. Since the last twelve months, Austin's home values have appreciated by 0.1%.

NeighborhoodScout's data also shows that Austin real estate has appreciated 196.13% over the last ten years, which is an average annual home appreciation rate of 11.47%. This figure puts Austin in the top 10% nationally for real estate appreciation. During the latest twelve months (between 2021 Q3 – 2022 Q3), Austin's appreciation rate was 19.10%.

In the latest quarter (between 2022 Q2 – 2022 Q3), Austin's appreciation rate has been 6.82%, which annualizes to a rate of 30.20%. However, higher mortgage rates mean it's more difficult to afford a home now, but the reduced demand also means less competition. Therefore, the appreciation will remain very modest in 2023 depending on how the mortgage rates trend. For long-term investment, you cannot underestimate Austin. Investing in a rental property for the long term would build your equity and also generate cash flow through rental income.

Here's Zillow’s housing market forecast for Austin-Round Rock Metro. The Zillow Home Value Forecast (ZHVF) is the one-year forecast of the Zillow Home Values Index (ZHVI). ZHVF is created using all homes, mid-tier cut of ZHVI and is available both raw and smoothed and seasonally adjusted. Austin-Round Rock Metro's home values are expected to drop by 1.8% between December 2022 and December 2023. According to their forecast, the supply and demand dynamics will likely push down prices over the next 12 months.

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Austin can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s unlikely to happen in the near future. The inventory in Austin MSA is still short but with inventory steadily increasing, right now is a great time to be a homebuyer in Central Texas.

Austin Housing Market Forecast
Source: Zillow

Is Austin Texas Good for Real Estate Investment?

Should you consider Austin real estate investment? Many real estate investors have asked themselves if buying an investment property in Austin is a good investment. You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2023. Let’s discuss a bit about the Austin metro area and then do a quick recap of how its housing market performed during the pandemic.

Austin is a minimally walkable city in Travis County with a population of approximately 790,195 people. It is the capital of Texas and it is growing at a fast clip. It is the fourth largest city in the state of Texas. The Austin real estate market isn’t the largest in the state of Texas, but there are several reasons to consider buying real estate in this city. The Austin housing market has gained a lot of steam, with home values almost doubling since 2010. It isn’t as big as Dallas, San Antonio, or Houston.

However, the Austin housing market is sizable – it is the eleventh largest city in the U.S. as of this writing, and it is the center of a large metro area. Austin has come up as another tech hub in the last 5 to 6 years. There are tons of high-paying tech jobs that moved to Austin in the last couple of years. The Austin-Round Rock metro area is home to about two million people. Recently Austin was ranked eighth for the best real estate markets, topping all other big Texas cities.

As per Neigborhoodscout.com, a real estate data provider, one and two-bedroom single-family detached homes are the most common housing units in Austin. Other types of housing that are prevalent in Austin include duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 46% of Austin's housing units.

According to ABoR, Austin's competitive housing market is changing the landscape of traditional homeownership. More homebuyers purchase condos and townhomes to live closer to the urban core or stay within their budget. Austin has been one of the hottest real estate markets in the country for many years. It has a record of being one of the best long-term real estate investments in the U.S. over the past 10 years.

It is currently a moderate seller’s real estate market. Austin's immense population growth during the past decade has heavily impacted its real estate market. Although this article alone is not a comprehensive source to make a final investment decision for Austin, we have collected ten evidence-based positive things for investors who are keen to buy an investment property in Austin. Texas is unique for having a biannual legislature. They don’t have the state legislature in town year-round. Instead, they are only in session for several months every two years.

This leads to an influx of legislators, reporters, and lobbyists every other year. This creates a unique but predictable boom and bust for the Austin housing market in the vicinity of the capitol building. Let’s look at the state of the Austin real estate market and the factors driving the market in the short and long term.

Is Austin Housing Market In A Bubble?

Austin is one of only eight U.S. metro areas to have fully recovered in the last 10 years to pre-recession values. Would Austin remain as one of the top real estate markets in the country or would the bubble burst? Well, Austin isn’t considered to be in a real estate bubble because the demand is consistently high and inventory is very tight. This is good news for investors because you can expect steady activity and the flow of people looking for housing.

In 2019, Austin continued to rank high on “Best of U.S.” lists. There was a record number of home sales in 2019. The December and Year-End 2019 Central Texas Housing Market Report reflects a record-breaking 33,084 home sales and $13B in sales volume. According to the Austin Board of REALTORS® (ABoR), between 2010 and 2019 home sales increased by 84%. The median home price in Austin has increased from $193,520 in 2010 to $318,000 in 2019, and the market did not show any signs of slowing down from 2020 to 2021.

The price of Austin properties declined following the 2007 peak while prices remained relatively flat following the 1995 and 2000 peaks. According to a report published on Williamskw.com, Austin will remain a seller's market in 2022 despite higher mortgage rates. The National Association of Realtors (NAR) suggests a “balanced” market is between 4-6 months of inventory. The entire Austin market is around 0.5 months. Austin inventory levels did increase in March 2022, yet not nearly enough for Austin to be a “buyers” market. That is not expected to change.

As Austin is a young city by many standards, Millennials will be the largest buying force in Austin in the upcoming years. This is going to be more attractive for the areas being close to neighborhood amenities and close by shopping & hang-out spots. Real estate industry experts think that there is no bubble. Austin's economy is strong and varied. Overall there is a huge scarcity of homes for sale in Austin. It just hasn't kept up with the pace of people moving here.

Austin's Affordable Real Estate & Certain Future Appreciation

Homes in Austin are 23% cheaper than the national average. It may be the second most expensive housing market in the state with a median home price of around $461,000, but it is still far cheaper than California or New York. Buy up condos or townhomes, and you’ll be able to see a sizable return on the investment.

An author in Forbes wrote in 2016 that Austin real estate is appreciating at one of the highest rates in the state because of NIMBY-ism, a reluctance to develop the riverfront or Texas hill country to build new homes. This has pushed development out along the highway and forced dense development in areas already zoned for housing.

This pushes up the price of existing homes, driving many in the Austin housing market to rent when they want to buy, while it guarantees capital gains for those who buy and hold property. Here are the ten neighborhoods in Austin having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

  1. East Cesar Chavez / Holly
  2. Chestnut
  3. Central East Austin
  4. Govalle
  5. Holly West
  6. Central East Austin South
  7. Rosewood
  8. Johnston Terrace
  9. Springdale / MLK-183
  10. MLK

Cost of living In Austin

The Austin-Round Rock metro area is home to about two million people. The city is known as a haven for live music, free thinking, and free spirits. It has a distinct culture and flavor compared to the rest of Texas, which is a mostly conservative and traditional state. According to WalletHub, among large U.S. cities, Austin ranked eighth, topping all other big Texas cities as well as San Jose, Atlanta, and Portland. Among all 300 cities, Austin still ranked a respectable No. 36 for best real estate markets.

One of the factors driving the Austin real estate market is the intangible but well-documented quality of life the city provides. In 2017, US News and World Report ranked the city first for quality of life. In 2016, Austin was ranked first on the Forbes list of Cities of the Future list. In 2017, that same magazine ranked the South River City neighborhood as one of the best for Millennials. WalletHub ranked the city sixth in their list of best places to live in 2017. In 2012, the FBI ranked Austin as one of the safest cities in the country.

Aside from high housing prices, the cost of living in Austin is relatively affordable. Overall, the cost of living for Austin is very reasonable. At three percent below the national average cost of living, moving to Austin may be an economical choice for you. One of the most interesting factors in the cost of living for Austin is that the cost of housing is 15 percent below the national average.

According to Sperling’s Best Places, grocery costs in Austin are slightly below the national average, with a rating of 89.1 against the U.S. average of 100, meaning it is about 11 percent lower than the national average on groceries.

The sales tax rate in Austin is 8.25 percent. There are no income taxes in Texas. Schools are largely funded through property taxes, which rise along with home prices. As home prices continue to skyrocket and people are increasingly forced to move to the distant suburbs to find affordable housing, a massive reworking of Austin’s building codes, known as CodeNext, promised to deliver some relief.

The median salary in Austin, TX is $51,596 and it is the 108th most expensive city in a database of 232 cities by NerdWallet.com. For a 2-bedroom apartment, the median rent per is $1,184. The median price for a 3/2 bedroom house is $276,634. Food and entertainment costs in Austin are reasonable. Redwood Austin is the area with the lowest cost of living.

Areas With The Lowest Cost of Living in Austin – (List by Niche.com & prices by Livability.com)

  1. Redwood, Texas – Located in Guadalupe County. The median income in Redwood, TX is $47,778 and the median home value is $54,700.
  2. Lockhart, Texas – Located in Caldwell County. The median income in Lockhart, TX is $48,884 and the median home value is $115,400.
  3. Martindale, Texas – Located in Caldwell County. The median income in Martindale, TX is $43,929 and the median home value is $151,200.
  4. Uhland, Texas – Located in Hays County. The median income in Uhland, TX is $40,662 and the median home value is $78,100.
  5. Taylor, Texas – Located in Williamson County. The median income in Taylor, TX is $42,793 and the median home value is $116,600.
  6. Lago Vista, Texas – Located in Travis County. The median income in Lago Vista, TX is $75,126 and the median home value is $189,400.
  7. Elgin, Texas – Located in Bastrop County. The median income in Elgin, TX is $50,369 and the median home value is $104,000.
  8. Hornsby Bend, Texas – Located in Travis County. The median income in Hornsby Bend, TX is $49,077 and the median home value is $123,000.
  9. Round Rock, Texas – Located in Williamson County. The median income in Round Rock, TX is $72,412 and the median home value is $179,900.
  10. Wimberley, Texas – Located in Hays County. The median income in Wimberley, TX is $59,167 and the median home value is $214,600.

Austin's Massive Student Population Propels The Rental Investment

Many people want to invest in the Austin real estate market because there is a massive student population that will rent properties for a premium if they’re within easy commuting distance of the University of Texas Austin campus. That school alone has more than 40,000 students. The Austin community college hosts about as many students as UT Austin. Huston Tillotson University, Saint Edward’s University, and National American University are also located in this city.

Positive Demographic Momentum of Austin: About half of Austin’s population is between 18 and 44, though that figure is skewed by the large student population. However, the reality is that many college graduates choose to stay here because of the abundant, well-paying jobs. After all, Austin has the highest per capita of high-paying jobs of any Texas city. This helps explain why the Austin housing market is growing at the fastest rate of any major city in Texas. Many of these young adults are starting their families here, creating certain future demand for housing in the Austin real estate market.

Rental Market Statistics: Before the pandemic, the average rent for an apartment in Austin was growing at 5% annually (Source: RENTCafe). 48% of the households in Austin are renter-occupied which is a significant population. More than 65% of the apartments can be rented for $1,500 or less. Around 20% of the rental apartments fall in the price range of $1,500 to $2,000 while only 10% of the apartments fall in the rent price range of $2,000 or more.

The average size for an Austin, TX apartment is 864 square feet with studio apartments being the most affordable. 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage.

As of January 15, 2023, the average rent for a 1-bedroom apartment in Austin, TX is currently $1,650. This is a 4% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Austin decreased by -6% to $1,125. The average rent for a 1-bedroom apartment decreased by -1% to $1,650, and the average rent for a 2-bedroom apartment decreased by -3% to $2,031.

The Zumper Austin Metro Area Report analyzed active listings across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Texas one bedroom median rent was $1,159 last month. Austin was the most expensive city with one bedrooms priced at $1,680 whereas San Marcos ranked as the most affordable city with one bedrooms priced at $1,280.

The best place to buy rental property is about finding growing markets. Cities like Round Rock, Cedar Park, and Pflugerville are good for investors looking to get started with rental property ownership at an affordable price. These cities look good for rental property investment this year as rents are growing over there. These trends provide a macro look at the growing rental demand. Each real estate market has its own unique supply-demand dynamics with unique neighborhoods that present their own opportunities for investors.

Here are the best areas to invest in a rental property in the Austin Metro Area. Most of these places have the same things in common, including rising rents and increasing property values. The Most Affordable Neighborhoods in Austin are University Hills where the average rent can go for $795/month, Heritage Hills, where the average rent can go for $795/month, and Windsor Hills, where the average rent can go for $833/month.

Where are rents growing fastest in Austin Metro Area (Y/Y%)

  • San Marcos had the fastest growing rent, up 19.6% since this time last year.
  • Kyle was second with rent climbing 14.2%.
  • Austin ranked as third with rent increasing 13.5%.

The Fastest Growing Cities For Rents in Austin Metro Area (M/M%)

  • Cedar Park had the largest monthly rental growth rate, up 2%.
  • Pflugerville was second with rent climbing 1.4%.
  • Austin was third with rent increasing 1.2%.
Austin Rental Market
Source: Zumper

Austin Is The Silicon Prairie

Austin Texas has been nicknamed Silicon Hills and Silicon Prairie because they’ve attracted so many high-tech employers. This has resulted in an active upscale Austin real estate market. Austin’s GDP, which grew 117% over the last 20 years, helped the real estate market recover from the recession.

The closest metro to see this type of growth was Silicon Valley, which grew its GDP by 99% during the same period. Major local employers in Austin include IBM, Amazon, Apple, Cisco Systems, and many semiconductor manufacturers. There are more than 3300 tech companies in the region and more than 100,000 tech workers all competing for homes in the Austin real estate market.

One of the long-term strengths of Austin is its diverse economy. The Austin real estate market dipped after the layoffs of the Dot-Com boom. They decided to solve the problem by encouraging medical and biotech employers to relocate to the area, too. As of this writing, there are 85 biotech and pharmaceutical companies in Austin.

Austin is a Relatively Friendly City for Landlords

Texas, in general, is very landlord-friendly, though cities can have their own, stricter ordinances. Texas doesn’t specifically let tenants withhold rent for failure to provide essential services. You can evict someone for nonpayment of rent after three days. Texas doesn’t set a limit on security deposits.

Texas doesn’t require a minimum time frame before you increase the rent. For major lease violations, you can terminate the lease then and there and give them three days to vacate. Knowing you won’t spend months trying to evict a non-paying tenant is a good reason to consider the Austin real estate market or another Texas housing market over more liberal cities.

The Excellent Tax Environment

Texas’ property taxes may be high, but this is offset by the lack of a state income tax. There is, overall, a low state and local tax burden for investors. That makes this a great place to buy a home and rent it out.

Texas Real Estate Investment Opportunities: Where To Invest?

With Austin becoming a more diverse city every year, there are plenty of opportunities to take advantage of – from buying new homes to different investment options in the Austin real estate market. Austin is a leader across the country with jobs and when you combine that with home prices not as drastically increasing, you'll get a real estate market that many others envy.

Good cash flow from Austin 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 the best investment property in Austin in a growing neighborhood would be key to your success.

As with any real estate purchase, act wisely. Evaluate the specifics of the Austin housing market at the time you intend to purchase. When looking for the best real estate investments in Austin, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing.

Some of the popular neighborhoods in and around Austin are Northwest Hills, Downtown Austin, West Lake Hills, Brushy Creek, Barton Creek, Spicewood Summit, Mueller, South Austin, Hyde Park, Windsor Park, Crestview, North Austin, Allandale, Shady Hollow, Rollingwood and Steiner Ranch.

There are around 75 neighborhoods in Austin. Tarrytown has a median listing price of $1.5M, making it the most expensive neighborhood. West University is the most affordable neighborhood, with a median listing price of $325K. (on Realtor.com).

Downtown is where the city's high-rise buildings are located, as well as being the center of government and business for the region. Downtown Austin is expanding and the residential options are increasing.

The cost of real estate might be the highest in Austin, but residents live within walking distance of everything they need. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

Apart from the Austin real estate market, you can also invest in the housing market of Houston, TX. If you are a home buyer or real estate investor, Houston has a track record of being one of the best long-term real estate investments in the nation through the last ten years.

The Houston Real Estate Market forecast is good, and current housing prices are relatively low, so if you want to get on board the Houston real estate investing then now would be a great time to do so.

The Houston metro area offers great opportunities for investors who are looking for a stable market that offers both cash flow and equity growth at a price that is STILL well below their replacement value.

The El Paso real estate market is another hot market to invest in. El Paso real estate market was ranked 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 households were pivotal in the ranking process.

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.

The next one is the San Antonio real estate market. The median home value in San Antonio is $184,322. San Antonio home values have gone up 4.8% over the past year and Zillow predicts they will rise 1.9% by Dec 2020. For those who want to invest in rental real estate, the San Antonio real estate market is an ideal location because of its outsized military presence.

Fort Sam Houston is located inside the city limits. Lackland Air Force Base, Randolph Air Force Base, Camp Bullis, and Camp Stanley are located in the immediate vicinity. This means that there is a large population that will almost always rent because they don’t know where they’ll be sent on their next assignment.

San Antonio has a dearth of affordable housing because demand is so much greater than the supply. This has created a large number of renters who need to pay quite a bit to rent apartments or single-family homes. We know there is a lack of housing relative to demand when a balanced market has a 6 month home inventory and San Antonio has only a two-month inventory.

How can we not mention Dallas on this list? The Dallas housing market 2020 is shaping up to continue the trend of the last few years as one of the strongest markets in the United States. Despite some fluctuations in the market, demand and sales have continued to climb at a feverish pace for more than two years and show no signs of stopping.

Dallas’s local economy is a mix of aerospace, computer chips, telecommunications, transport, energy, and healthcare sectors and the Finance and Business Services. These sectors are all providers of good wages which allows for a strong market for Dallas investment properties.

Dallas’s population has grown at twice the national rate for years now and this pushes the prices of Dallas investment properties higher due to builders not being able to keep up.

Dallas’s housing prices have increased 29% over the last three years, even with these increases in home prices, they are still competitive for investment properties and you can expect further increases over the years. If you want to buy an investment property in Dallas, don’t wait around, go ahead and do it.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Austin.

Consult with one of the investment counselors who can help build you a custom portfolio of Austin turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Austin.

Not just limited to Austin or Texas but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Austin turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

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 areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

Let us know which real estate markets in the United States you consider best for real estate investing! 

This article shouldn't be used to make real estate or financial decisions. Some of this article's information came from referenced websites. Norada Real Estate Investments provides no express or implied claims, warranties, or guarantees that the material is accurate, reliable, or current. All information should be validated using the below references. Norada Real Estate Investments does not predict the future US housing market. This article educated investors on Austin real estate. Buying a rental property needs research, planning, and budgeting. Not all investments are good. Always do research and consult a real estate investment counselor.

References

Market Data, Reports & Forecasts
https://www.abor.com/new-center/market-stats
https://www.zillow.com/austin-tx/home-values
https://www.realtor.com/realestateandhomes-search/Austin_TX/overview
http://austin.culturemap.com/news/real-estate/08-30-18-austin-home-foreclosures-rise-report

Foreclosures
https://www.realtytrac.com/statsandtrends/tx/travis-county/austin

Apartment Prices & Trends
https://www.rentcafe.com/average-rent-market-trends/us/tx/austin/
https://www.rentjungle.com/average-rent-in-austin-rent-trends/

Reasons to consider investing in Austin
https://www.austintexas.gov/invest-here
https://www.usnews.com/best-colleges/university-of-texas-3658
https://www.collegesimply.com/colleges/texas/austin/four-year-colleges/
http://capstonecapitalusa.com/the-most-friendly-8-landlord-states
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renter
http://austin.culturemap.com/news/real-estate/09-11-18-best-real-estate-markets-in-us-austin-wallethub

Is Austin In A Bubble
https://www.quora.com/Is-the-Austin-real-estate-market-a-bubble-If-so-when-will-it-burst
https://www.williamskw.com/blog/5-Predictions-for-the-Austin-Real-Estate-Market-in-2018/53486

Cost of Living
https://livability.com/tx
https://www.tripsavvy.com/austins-cost-of-living-255111
https://www.bestplaces.net/cost_of_living/city/texas/austin
https://www.nerdwallet.com/cost-of-living-calculator/city-life/austin
https://www.niche.com/places-to-live/search/suburbs-with-the-lowest-cost-of-living/m/austin-metro-area
https://www.forbes.com/sites/scottbeyer/2016/08/31/why-is-austins-housing-more-expensive-than-other-texas-cities/#10556d3d6121

Texas Housing Market Predictions & Trends 2023

by

The Texas housing market is certainly a fascinating one to explore in 2023. Using several statistics, we explore the Texas houisng market and where it's heading. The lack of inventory continues to inflate Texas housing prices for now, but many analysts predict that the rate of appreciation will slow down as compared to the last two years. Some of the fastest-growing real estate markets in 2022 are in extremely desirable sections of Texas, particularly in the suburbs of major metropolitan cities.

These communities often have great educational systems and provide more value for money. They are ideal for millennials seeking a place to raise a family.  The suburbs of Dallas and Austin are by far the most popular areas to purchase in Texas. Real estate brokers also report increased sales of lake properties and ranches as individuals seek ways to get away from congested cities.

Texas has approximately 1,700 cities with populations ranging from 2.3 million to less than 100 people. According to PwC and the Urban Land Institute's Emerging Trends in Real Estate 2022 research, Texas has four of the top twelve markets with the highest house-building prospects.

According to Zillow, the typical home value in Texas has climbed by 12.6% over the last twelve months. It stands at $315,451 (ZHVI), which is $35,273 more than last December. People from all over the country are flocking to Texas to live, work, and invest in the Texas real estate market.

  • Texas housing price 1-year change: 12.6%
  • Texas housing price 5-year change: 60%

The FHFA House Price Index (FHFA HPI®) is the nation’s only collection of public, freely available house price indexes that measure changes in single-family home values based on data from all 50 states and over 400 American cities that extend back to the mid-1970s. At the national level, house prices were flat nationwide in October, experiencing a 0.0 percent change from the previous month. House prices rose 9.8 percent from October 2021 to October 2022.

Four-Quarter Appreciation in Texas (as of 2022 Q3)

  • One-Quarter Appreciation: 0.1%
  • Four-Quarter Appreciation: 14.4%
  • Five-Year Appreciation: 61.0%
  • Appreciation since 1991: 331.0%
Texas House Price Appreciation
Source: FHFA

Texas Housing Market Predictions 2023

Texas has had some of the strongest housing appreciation rates in the country over the past decade. Over the past decade, Texas housing prices have risen 125.74 percent, which equates to an annual home appreciation rate of 8.48 percent, according to the data collected by NeighborhoodScout. If you are a house buyer or real estate investor, Texas has been one of the finest long-term real estate investments in the United States over the past decade.

The Texas housing market is expected to grow in 2023. In other words, if you're debating whether or not to purchase a house this year, you can't start preparing now to be a better buyer in 2023.  Texas housing market mirrors larger national trends, albeit with some regional variation. An imbalance between demand and supply has fueled rapid home appreciation across the state.

According to Neighborhoodscout, the real estate appreciation rates in Lone Star State have been among the highest in the United States. Neighborhoodscout's latest quarterly appreciation (between 2022 Q2 – 2022 Q3) rate in Texas was 1.97 percent, which amounts to an annual appreciation rate of 8.10 percent.

  • Texas appreciation rate has been 1.97% between 2022 Q2 – 2022 Q3.
  • Texas appreciation rate has been 19.64% between 2021 Q3 – 2022 Q3.
  • Texas appreciation rate has been 41.08% between 2020 Q3 – 2022 Q3.
  • Texas appreciation rate has been 62.49% for the last 5 years, between 2017 Q3 – 2022 Q3.
  • Texas appreciation rate has been 125.74% for the last 10 years, between 2012 Q3 – 2022 Q3.
  • Texas appreciation rate has been 217.15% since 2002, between 2000 Q1 – 2022 Q3.

Although house sales have slowed in Texas, this is not always an indication of demand but rather of supply. Numerous analysts believe that the number of homes sold in Texas in 2021 and 2022 could have been higher if there had been a greater supply of homes for sale. As newly constructed homes enter the market, this might increase overall sales.

If you want to sell your property in 2023, you are in an advantageous position. While Texas home prices are not predicted to increase as quickly or as sharply as they did in 2021 and early 2022, when mortgage rates were low, buyer demand remains robust and is unlikely to diminish. As Bidding wars are typical, your home is likely to attract a large number of buyers. This is a perfect moment to sell if you are not concerned about acquiring a new house with potentially higher interest rates.

After two years of the pandemic, analysts continue to forecast a surge in home sales. Unfortunately, this means that a large number of individuals will be priced out. Affordability will be a concern, and this might eventually lead to a decline in demand to more sustainable levels. Overall, the Texas housing market will likely continue robust, although not to the same extent as in 2021.

Current Texas Housing Market Trends

Aggressive central bank policies drag down the Texas housing sector, slowing sales. As housing inventories improve and prices fall, the housing sector continues to ease. Despite a nationwide decline in construction permits, high demand for construction shows many homebuyers are delaying significant purchases. Lower-priced homes, an attractive market for first-time buyers and younger households, sold less than higher-priced homes.

According to the most recent report from the Texas Real Estate Research Center at Texas A&M University, the housing market in Texas has continued to slow as people make financial decisions based on mortgage rates and recession fears. On the supply side, both housing permits and housing starts are declining. Prices are correcting, and the market is stockpiling.

However, as evidenced by sales volume, buyers are calmer now than they were during the pandemic frenzy, with many key indicators such as days on market (DOM) and months of inventory (MOI) uniformly returning to pre-pandemic levels. With higher mortgage interest rates expected in 2023, existing-home sales will most likely fall short of 2022 levels.

Texas Housing Demand

Total home sales inched down 3.3 percent month over month (MOM), settling at a seasonally adjusted rate of 26,800 closed sales. Sales in Houston took a big hit, while sales in the other major metros stayed at October levels. Texas' sales volume has shrunk by one-tenth compared with a year earlier. As winter approaches, sales are expected to trend downward for the next two months.

Rising mortgage rates disproportionately affect sales of different-priced properties. Up to November 2022, total sales for homes under $300K fell about 30%, while sales for homes between $400K and $500K rose 15%. Rising rates may have deterred more lower-middle-class homebuyers than upper-middle-class ones.

Homes are on the market longer as sales slow. Texas averaged 46 days. The limited period implies the housing market is still tight compared to previous standards. Austin's metropolitan DOM doubled from 27 to 57 days. Dallas' DOM went from 25 to 42 days.

Texas Housing Prices

The median home price in Texas continues to decline, as the seasonally adjusted median price decreased 1 percent month over month. The four largest metropolitan areas saw variable monthly changes. Despite depreciation over the past six months, the state's median price remained 6.1% higher than levels one year ago. Dallas had the highest rate of growth at 9.6 percent, while Austin's rate of growth decreased to 0.1 percent.

Texas Housing Price Trends
The Texas Repeat Sales Home Price Index is a more accurate indicator of changes in single-family home values since it adjusts for compositional price influences. In comparison to November 2021's 19.5 percent year-over-year (YOY) increase, Texas's index rose 9.2 percent YOY in November 2022, indicating a reduction in price growth. A similar pattern hit the major metropolitan areas as growth rates decreased from double digits to single digits, with the exception of San Antonio (12.8 percent). Moderating property prices corroborated the Fed's fight against inflation.

Texas Housing Supply

Homebuilders are initiating fewer building projects. The state's year-to-date cumulative single-family construction permits in November 2022 had a net loss of 5.2 percent, shrinking from 157,043 to 148,954 units. The monthly drop paused in November, and construction permit issuance remained below 10,000 units. Construction permits rebounded in all major metros except Austin. Dallas (2,886 permits) gained more than 300 permits, while issuance in Houston (3,223 permits) stayed steady.

Despite the slight decrease in Austin, the tech metro (1,341 permits) expanded residential space for single-family homes twice as fast as in San Antonio (663 permits). Construction generally slows during the winter, yet even after the seasonal adjustment, Texas' single-family construction starts plummeted 28.5 percent from 2021 to 10,700 units, corroborating a slowdown in the housing industry.

The number of homes for sale typically declines after the summer peak. However, active listings have been quickly accumulating to a seasonally adjusted level of 91,600 units. Compared with the five-year average of 94,800 units before the pandemic, this November's housing inventory level is only 4.5 percent away from rebounding back to the pre-pandemic volume, rather than 50 percent a year ago.

Amid the rebound, Texas' MOI ticked up to 2.9 months. Austin's inventory level jumped to a ten-year high with 9,000 homes ready for sale, while Dallas's housing supply was tight with 20,000 homes for sale, 3,700 fewer than in November 2019.

Texas Housing Market Trends for December 2022

According to Redfin, in December 2022, home prices in Texas were up 2.9% compared to last year, selling for a median price of $345,500. On average, the number of homes sold was down 31.4% year over year and there were 20,265 homes sold in December this year, down from 33,010 homes sold in December last year. The median days on the market was 49 days, up 22 days year over year.

  • Median Sale Price = $345,500, +2.9% year-over-year
  • # of Homes Sold = 20,265, -31.4% year-over-year
  • The median days on the market was 49 days, up 22 days year over year.

Top 5 Metros in Texas with the Fastest Growing Sales Price

Horizon City, Texas: In December 2022, Horizon City home prices were up 37.5% compared to last year, selling for a median price of $258K. On average, homes in Horizon City sell after 70 days on the market compared to 29 days last year. There were 43 homes sold in December this year, up from 22 last year. Hot listings can sell for about 3% above the list price and go pending in around 14 days.

Friendswood, Texas: In December 2022, Friendswood home prices were up 27.6% compared to last year, selling for a median price of $375K. On average, homes in Friendswood sell after 44 days on the market compared to 9 days last year. There were 55 homes sold in December this year, down from 81 last year. Hot listings can sell for around the list price and go pending in around 7 days.

Haslet, Texas: In December 2022, Haslet home prices were up 27.3% compared to last year, selling for a median price of $649K. On average, homes in Haslet sell after 63 days on the market compared to 28 days last year. There were 32 homes sold in December this year, up from 21 last year. Hot listings can sell for around the list price and go pending in around 42 days.

Mansfield, Texas: In December 2022, Mansfield home prices were up 26.0% compared to last year, selling for a median price of $540K. On average, homes in Mansfield sell after 73 days on the market compared to 20 days last year. There were 80 homes sold in December this year, down from 98 last year. Hot listings can sell for around the list price and go pending in around 22 days.

Socorro, Texas: In December 2022, Socorro home prices were up 25.3% compared to last year, selling for a median price of $233K. On average, homes in Socorro sell after 23 days on the market compared to 24 days last year. There were 49 homes sold in December this year, up from 36 last year. Hot listings can sell for around the list price and go pending in around 7 days.

Texas Employment Situation

Home sales are typically intimately related to the health of an economy and increase and decrease in tandem with economic activity. As economies decline, the money supply becomes more constrained. As it gets more difficult to obtain money, fewer house buyers enter the market. With fewer buyers accessible due to stricter credit criteria, inventories of houses rise or take longer to sell. Price decreases when there is more product supply and less demand for it.

As recession fears persist, inflationary pressures and uncertainty continue to plague the Texas economy. Texas' labor market expanded, albeit slowly, but it remained a positive factor in the overall economy. Initial unemployment claims are increasing as employers cut costs to stay afloat. Inflation continues to offset any nominal wage increases seen in the market, resulting in real wage decreases. Because the Texas trade-weighted dollar reached an all-time high, import costs fell to an all-time low. It also meant that foreign traders had to pay more for Texas exports, lowering export values.

Texas added 33,600 jobs despite national tech company layoffs. Texas' private sector hired 34,600 people in November, including 1,400 in professional/business services. Construction lost 3,900 people due to market demand for construction projects.  Despite the first-half negative revision, the Dallas Fed predicts a 3.5 percent job growth in 2022.

A strong Texas job market has kept the unemployment rate at 4 percent for three months. Houston had 4.3 percent unemployment, while Austin had 2.9 percent. Houston's goods-producing jobs, especially in the oil and gas industry, are still below pre-pandemic levels. Austin's leisure/hospitality sector added nearly 3,000 jobs in a month.

The number of Texans filing initial unemployment claims in November dropped by more than 8,000 from October. Despite weekly claims decreasing compared with previous months, claims are expected to continue increasing as businesses are unsure of the economy going forward. Texas' average weekly continued unemployment insurance claims shrugged their upward trend, dropping nearly 30,000 continued claims MOM in November.

Texas attracted 311,500 networkers in the past 11 months, and the influx of out-of-state workers expanded Texas' labor force by 2.2 percent to 14.6 million available workers. At the metropolitan level, Dallas added the most workers, followed by Houston and Austin. The state's labor force participation rate held steady at 63.5 percent.

Nationally, nonfarm payrolls rose by 315,000 in August or rose by 0.2 percent. Over the 12-month period ending with August, nonfarm payrolls rose by 5,840,000 jobs or 4 percent. Texas ranks 1st among the 50 states and the District of Columbia for percentage gain in nonfarm payroll employment over the past 12 months.

Texas Employment Situation: Joint Economic Committee

Texas added 16,400 net payroll jobs, or 0.1 percent, on a seasonally adjusted basis during August. In the prior month, Texas added 73,400 jobs. Over the past twelve months, Texas added 726,900 payroll jobs or 5.7 percent. Texas nonfarm payroll employment had increased in each of the past 12 months.

Employment-to-Population Ratio: The employment-to-population ratio, or the percentage of the Texas civilian noninstitutionalized population 16 years and older counted as employed, in August fell to 61.2 from 61.3 percent in the prior month. At 61.2 percent, Texas is tied for 21st among state employment-to-population ratios in the nation. The employment-to-population ratio in Texas rose by 1.2 percentage points from a year earlier.

The 10-year high for the employment-to-population ratio in Texas was 61.6 percent in November 2019. The series high for the employment-to-population ratio in Texas last occurred in November 1998 when the employment-to-population ratio hit 65.8 percent. The 10-year low for the employment-to-population ratio was 52.2 percent in April 2020. This also represents the series low for the employment-to-population ratio in Texas.

Top 10 Places to Buy a House in Texas

According to Niche.com, these are the top 10 areas to buy a home based on home valuations, property taxes, homeownership rates, housing prices, and real estate trends. The ranking is based on statistics from the United States Census Bureau, the FBI, and other sources. Cottonwood Creek South is the best place in Texas to buy a house.

  1. Cottonwood Creek South, a neighborhood in Richardson, TX
  2. Arapaho, a neighborhood in Richardson, TX
  3. Lakeside City, TX
  4. Fulshear, a town in Fort Bend County, TX
  5. Canyon Creek South, a neighborhood in Richardson, TX
  6. Heights Park, a neighborhood in Richardson, TX
  7. Shady Hollow, a suburb of Austin, TX
  8. Red Lick, Bowie County, TX
  9. Woodway, a suburb of Waco, TX
  10. Timberbrook, a neighborhood in Plano, TX

Top 10 Texas Cities Having Highest Real Estate Appreciation Rates Since 2000

According to Neighborhoodscout.com, these are the top ten cities in Texas that have had the highest real estate appreciation since the year 2000.

  1. Westworth Village
  2. Gustine
  3. Balmorhea
  4. Garden City
  5. Mico
  6. Runge
  7. Granger
  8. Encinal
  9. Falls City
  10. Wingate

References

  • https://www.zillow.com/tx/home-values/
  • https://www.redfin.com/state/Texas/housing-market
  • https://www.recenter.tamu.edu/articles/technical-report/Texas-Housing-Insight
  • https://www.neighborhoodscout.com/tx/real-estate
  • https://www.niche.com/places-to-live/search/best-places-to-buy-a-house/s/texas/
  • https://www.fhfa.gov/DataTools/Tools/Pages/Four-Quarter-Heat-Map.aspx
  • https://www.fhfa.gov/AboutUs/reportsplans/Pages/Fannie-Mae-Freddie-Mac-Reports.aspx
  • https://www.jec.senate.gov/public/index.cfm/republicans/tx/

Housing Market Predictions | Real Estate Market Forecast 2023

by

Housing Market Predictions & Forecasts

Will a seller's market be prevalent in real estate in the future due to increasing demand and limited supply? Housing demand is influenced by interest rates, unemployment, home price inflation, income growth, the availability of easy credit, etc. The economy is predicted to grow in the next years, pre-pandemic working conditions will return, and a range of other factors will most likely contribute to the success of the housing market.

Home prices are still rising year after year, though not as dramatically as they were earlier this year. The level of mortgage rates in 2023 will most likely influence how much home values fall. The real estate markets are significantly impacted by interest rates because as interest rates fall, so do mortgage payments, increasing demand for real estate and driving up prices.

The housing market saw an incredible year last year, with record-low interest rates, the strongest yearly growth in single-family values and rentals, a generational low in foreclosure rates, and the highest number of home sales in 15 years. As numerous buyers battled for the winning bid, house sellers witnessed a market in which their properties sold rapidly and frequently for prices over the listing price.

2022 was also predicted to be a prosperous year for the housing market but rising inflation and mortgage rates changed its outlook completely. Compared to the previous year, the housing market has significantly cooled, with home sales declining and prices rising at a moderate rate. In this blog post, we will discuss the latest housing market predictions for 2023.

Also Read: US Housing Market Trends in December 2022

There are still many concerns regarding the housing market. Critically, despite the fact that shortage of supply has been one of the primary drivers of home price growth, rising interest rates are deterring both potential sellers and new construction. As a result, there is no hope for an improvement in the housing supply and a sustainable housing market that would result from an increase in inventory.

The large and sudden increase in mortgage rates that occurred this year rendered an already expensive housing market far less affordable. Home prices experienced a meteoric rise in the early years of the pandemic for a number of reasons, including the fact that demand was at an all-time high, supply was at an all-time low, and mortgage rates reached a number of all-time lows.

The current housing market trends indicate buyers remain interested, keeping the market somewhat competitive, especially for attractive, well-priced homes. However, some factors may influence the market's pace or whether it favors buyers or sellers. Higher mortgage rates and recession fears have cooled housing markets from early spring highs. The market is shifting away from sellers to more balanced conditions.

A little pressure on home price growth will continue through the end of the year, and housing prices will continue to rise due to a supply-demand mismatch. Many experts predicted that the pandemic would result in a housing crash comparable to the Great Depression. That, however, will not happen. Housing prices are unlikely to fall drastically, but they are expected to rise very slowly as compared to last year's pace.

Housing Market Predictions 2023

There is little consensus among economists, mortgage firms, banks, and real estate firms regarding whether the historically tight U.S. housing market will reverse course in 2023. The accounting firm KPMG LLP forecasts that the U.S. housing market would decline by as much as 20% between 2022 and 2023. Goldman Sachs and Wells Fargo estimate the market will decline by 7.5% and 5.5%, respectively. Real estate companies are not optimistic.

The real estate investment firm Amherst predicted a 5% fall in the market, while Redfin predicted a 4% decline. Even federal mortgage supporters Freddie Mac and Fannie Mae anticipate a 0% to 2% decline in the market. On the other side, the Mortgage Bankers Association anticipates a 0.7% increase in the housing market, while CoreLogic predicts a 4.1% increase. Realtor.com forecasts a 5.4% increase, the National Association of Realtors forecasts a 1.2% increase, and Home.LLC forecasts a 4% increase.

Lawrence Yun, chief economist and senior vice president of research at the National Association of Realtors, predicts that 4.78 million existing homes will be sold, prices will remain constant, and Atlanta will be the top real estate market to monitor through 2023 and beyond. Half of the country may witness minor price increases, while the other half may see minor price decreases.

Housing sales will decline by 6.8% compared to 2022 (5.13 million) and the median home price will reach $385,800 – an increase of just 0.3% from this year ($384,500). In 2023, the NAR's top 10 housing markets will include Atlanta, Raleigh, Dallas, Fayetteville, Ark., and Greenville, S.C., in addition to five new metropolitan regions.

As housing demand continues to decelerate and both buyers and sellers attempt to regain their footing, it is important to remember that the surge in housing demand in 2021 was fueled by unusual circumstances, such as COVID-19-induced demand for more space and vacation homes, as well as record-low mortgage rates.

The positive outlook is that most real estate firms do not predict a financial or foreclosure crisis on the scale of 2008, but they do expect housing fundamentals to return to the mean.  Some of that moderation will be brought about by growing salaries, while some will be brought about by declining home prices. The housing market won't be overvalued after this correction is over.

CoreLogic’s most recent Loan Performance Index shows that, despite 2022’s surge in mortgage rates, almost all borrowers were able to meet their monthly payments during the year. For the first 10 months of 2022, the number of homeowners with a mortgage who were at least 30 days late on their payments hovered between 3.4% and 2.7%, with the latest data reporting a 2.8% overall delinquency rate in October. On an annual basis, mortgage delinquencies dropped for the 19th consecutive month in October.

Foreclosure rates remained near record lows throughout most of 2022, bottoming out at 0.2% in February and remaining at 0.3% through October. The fact that 99% of borrowers have locked in a mortgage rate that is lower than current rates helps prevent most homeowners from making late payments or defaulting on them altogether.

The firm that has a bullish forecast for 2023 includes Zillow. The latest housing forecast produced by Zillow economists has U.S. home values falling just 1.1% between November 2022 and November 2023. Meanwhile, the relatively bearish camp includes firms like Moody's Analytics. Its forecast has national home prices falling 5.1% between the fourth quarter of 2022 and the fourth quarter of 2023. Among the 897 markets Zillow measured, it expects 658 markets to see falling home prices between November 2022 and November 2023.

That includes markets like San Jose (-7.2% projection); Grand Forks, N.D. (-6.7%); Odessa, Texas (-6.4%); San Francisco (-6.1%); and Santa Rosa, Calif. (-5.3%). Meanwhile, Zillow expects 239 markets to see positive or flat home price growth between November 2022 and November 2023. That includes markets like Atlantic City, N.J. (+4.2% projection); Homosassa Springs, Fla. (+4.2%), and Yuma, Ariz. (+3.7%).

According to the latest report published by Fortune, the ongoing home price correction—which saw U.S. home prices decrease 2.4% between June and October—has been moderate. However, economists and experts disagree on whether this is a modest setback for home price increases or the start of a sharper correction.

According to the forecast by Moody's Analytics, the national home prices will fall 5.1% between the fourth quarter of 2022 and the fourth quarter of 2023. Peak-to-trough, Moody's expects U.S. home prices to fall 10%. Among the 322 regional housing markets analyzed by Moody's, 178 markets are expected to see at least a 5% decline in home prices between the fourth quarter of 2022 and the fourth quarter of 2023.

That includes markets like Morristown, Tenn. (-10.3% projection), Pocatello, Idaho (-9.9%), Muskegon, Mich. (-9.7%); Boise (-9.5%), and Santa Cruz, Calif. (-8.8%). Peak-to-trough, Moody's expects U.S. home prices to fall 10%. Keep in mind when a group like Zillow or Moody's Analytics says “U.S. home prices,” they're talking about an aggregated view of the country. In regional housing markets—heck, in each neighborhood—the results could vary significantly.

Low inventories will prevent home prices from declining. Strong job growth, low inventories, and tight supply will cause unequal price movements. Lower price tiers are more susceptible to interest rate hikes, while higher price tiers are more resistant to price decreases. The mix of homes that sell may be smaller on average as the market reacts to increasing mortgage rates and decreased affordability.

Housing Price Trends & Forecast Until November 2023

CoreLogic HPI™ is designed to provide an early indication of home price trends. The CoreLogic Home Price Insights report features an interactive view of its Home Price Index product with analysis through November 2022 with forecasts through November 2023. United States home prices nationwide, including distressed sales, increased year over year by 8.6% in November 2022 compared with November 2021.

On a month-over-month basis, home prices declined by 0.2% in November 2022 compared with October 2022. The CoreLogic HPI Forecast indicates that home prices will decrease on a month-over-month basis by 0.1% from November to December 2022 and on a year-over-year basis by 2.8% from November 2022 to November 2023.

home price forecast
Source: CoreLogic

The report also shows that in November, year-over-year home price growth stopped its 21-month stretch of double-digit momentum with an 8.6% increase, the lowest rate of appreciation in precisely two years. In spite of the fact that 16 states defied the national trend and experienced double-digit yearly price rises, appreciation is slowing in many of the nation's most desirable housing areas. The Southeastern states still topped the nation in terms of price rise, but they also experienced some of the most dramatic cooling.

Comparatively, somewhat more costly Western regions have also experienced significant reductions in recent months after the spring peak. Nationwide, the recent price deceleration pushed November home values 2.5% below the spring 2022 peak. In 2023, home values will likely move even further from that high point, as CoreLogic expects price growth to begin recording negative year-over-year readings in the second quarter.

No states posted an annual decline in home prices. The states with the highest increases year over year were Florida (18%), South Carolina (13.9%), and Georgia (13.6%). These large cities continued to experience price increases in November, with Miami again on top at 21.3% year followed by Houston at 10.6%, Phoenix at 8.1%, and Las Vegas also at 7.7% year over year.

Current Home Price Trends
Source: CoreLogic

Top Markets at Risk of Home Price Decline in 2023

The CoreLogic Market Risk Indicator (MRI), a monthly update of the overall health of housing markets across the country, predicts that Bellingham, WA is at very high risk (70%-plus probability) of a decline in home prices over the next 12 months. Crestview-Fort Walton Beach-Destin, FL; Salem, OR; Merced, CA and Urban Honolulu, HI are also at very high risk for price declines.

CoreLogic Market Risk Indicators is a multi-phase regression model that provides a probability score (from 1 to 100) on the likelihood of two scenarios per metro: a >10% price reduction and a ≤ 10% price reduction. The higher the score, the higher the risk of a price reduction. CoreLogic is a leading global property information, analytics, and data-enabled solutions provider.

Top Markets at Risk of Home Price Decline in 2023
Source: CoreLogic

Housing Market Forecast & Sentiment 2023 (Freddie Mac)

According to Freddie Mac, there are currently 18 percent more persons aged 25 to 34 than there were in 2006. This represents an increase of 6.6 million prospective first-time homeowners, from 39.5 million in 2006 to 46.1 million today. In addition to the increase in first-time homebuyers, the number of high-income renters who can afford to buy and are of prime first-time homebuyer age has also been growing.

In 2006, lending criteria were significantly loosened, and little examination was done to determine whether or not a borrower could repay their loan. These days, the requirements are more stringent, which lowers the risk for both the lenders and the borrowers. Consistent with a more challenging housing market for buyers, the share of buyers that faced at least one mortgage denial before getting approved grew from 22% in 2020 to 34% in 2021.

The government and jumbo segments had the most significant tightening in the previous month. These two housing markets couldn't be more different from one another, and the current situation is in no way comparable to that of the past. The Mortgage Credit Availability Index (MCAI) is an index that is released regularly throughout the year by the Mortgage Bankers Association (MBA). This index is used to measure how simple it is to get a mortgage.

The higher the index is, the more options there are for obtaining mortgage finance. In 2004, the index was hovering around the 400 mark. As the housing market heated up, mortgage loans became more available, and then in 2006, the index surpassed 850. The mortgage credit availability index (MCAI) fell as a result of the fall in the real estate market since it became nearly hard to get mortgage financing.

Since then, thankfully, the conditions for lending have been relaxed a little bit, although the index is still relatively low. The index had a reading of 103.3 in August 2022, which is around one-seventh of what it had been in 2006. It fell by 0.1 percent to 103.3 in December. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.

Mortgage credit availability was mostly unchanged in December as mortgage rates remained significantly higher than the prior two years and both refinance and purchase activity slowed dramatically The Conventional MCAI decreased 0.1 percent, while the Government MCAI decreased by 0.1 percent.

Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 0.2 percent, and the Conforming MCAI was unchanged. The segment of the market which showed the sharpest decline in credit availability was FHA and VA lending –which saw a 23 percent decline over 12 months.

Mortgage Credit Availability Index Trends
Source: Mortgage Bankers Association

Over the past decade, chronic underbuilding and the influx of millions of millennials into the homebuying market have resulted in a major mismatch in housing supply and demand. Even though mortgage rates are skyrocketing, the housing market is not going to crash any time soon. The result will be a much slower rate of appreciation than in the past two years. We are predicting the housing market for the next 5 years and to recognize patterns that may influence real estate values and rentals beyond a year.

Freddie Mac's own regression research indicates that a 1 percent rise in mortgage rates reduces home price increases by around four percentage points (for example, moving from 11 percent home price growth a year to 7 percent ). In contrast, analysts at J.P. Morgan expect a greater impact of around six percentage points lower home price increase.

Since home values are so high, the housing market may be more susceptible to rate increases than in the past; therefore, the greater estimate appears realistic. While it seems apparent that rising interest rates will reduce housing demand by reducing affordability, the actual past is a significantly less reliable indicator of what will occur because of a huge balancing impact – interest rates often rise when the economy is expanding.

The government-sponsored enterprise forecasts that for every one percentage point increase in mortgage rates, house sales would decrease by around five percent, and price growth will slow by four to six percentage points. If mortgage rates stabilize at current levels, and all other factors remain constant, their analysis predicts a much slower, but still positive house price rise with a wide regional range depending on migration trends.

As work-from-home becomes increasingly popular, it is anticipated that the housing market will continue to be undersupplied and that migration to lower-cost areas will continue to rise. This is significant since most booming cities have a major housing shortage due to a previous inflow of population.

Finally, favorable demographics suggest that the robust demand for first-time homebuyers will persist. This is due to the fact that there are still a substantial number of younger renters with sufficient income to sustain homeownership, and they should continue to be a formidable force for the foreseeable future. As the economy faces various headwinds in 2023, these variables should continue to exert a substantial influence on the housing market.

Freddie Mac's Economic & Housing Research Group in its latest forecast has predicted mortgage rates dropping from an average of 6.8% in the fourth quarter of 2022 to 6.2% in the fourth quarter of 2023. The housing market rapidly decelerated last year as markets absorbed the impact of higher mortgage rates. Home sales have fallen to a forecasted 5.4 million units at a seasonally adjusted annual rate in the third quarter of 2022 from 7 million earlier this year.

Housing Market Predictions
Source: Freddie Mac

Home purchase mortgage applications point to a continued contraction in home sales activity. The government-sponsored enterprise forecasts that home sales activity will bottom at around 5 million units at the end of 2023. Falling from 7 million to 5 million would be a decline of about 30% and put the contraction in home sales in line with other historical periods when interest rates increased.

As housing market activity continues to contract, Freddie Mac expects that it will lead to a continued increase in the months’ supply of homes available for sale from historically low levels last year. The loosening of the once incredibly tight for-sale inventory removes the intense upward pressure on home prices of the past two years. While fewer sales are increasing the months’ supply, that is partially offset by fewer new listings as high mortgage rates disincentivize existing homeowners from moving up or downsizing.

They expect house prices to decline modestly, but the downside risks are elevated. As the labor market cools off, housing demand will remain weak in 2023, potentially resulting in declines in prices next year. However, home price forecast uncertainty is wide due to interest rate volatility and the potential of a recession on the horizon.

Given the house price and home sales forecast, they estimate home purchase mortgage originations to be $1.9 trillion in 2022, slowing to $1.6 trillion in 2023. With mortgage rates expected to remain elevated, they forecast refinance activity to slow with refinance originations declining from $2.8 trillion in 2021 to $747 billion in 2022 and $310 billion in 2023. Overall, their forecast is that total originations will decline from the high of $4.8 trillion in 2021 to $2.6 trillion in 2022 and $1.9 trillion in 2023.

The quarterly housing outlook pulse poll conducted by Freddie Mac assesses public attitudes on housing-related problems. In the fourth quarter of 2022, market confidence fell to its lowest point since tracking began in March 2020. The likelihood of buying or refinancing a home remained flat quarter-over-quarter, while payment concerns spiked among both homeowners and renters.

  • 34% are confident the housing market will remain strong over the next year. This is down 12 percentage points from last quarter.

  • 57% of renters and 25% of homeowners spend more than 30% of their monthly income on housing.

  • This is down 3 percentage points and up 1 percentage point, respectively, from last quarter.

  • 21% are likely to buy a home in the next six months, a 2-percentage point increase from last quarter.

  • 14% of homeowners are likely to sell in the next six months, a 1-percentage point decrease from last quarter.

  • 17% of homeowners are likely to refinance in the next six months, a 1-percentage point increase from last quarter.

  • 57% of consumers are concerned about making housing payments, with concern increasing among both renters and owners since last quarter.

  • 70% of renters (an 8-percentage point increase from last quarter) and 44% of homeowners (a 7-percentage point increase from last quarter) are concerned about making housing payments.

Housing Market Outlook
Source: Freddie Mac

Housing Market Crash Predictions For Next Few Years

The housing market is far better than it was a decade ago. Last year, the housing industry experienced a boom, with the most significant annual increase in single-family house values and rentals, historically low foreclosure rates, and the highest number of home sales in 15 years, totaling 6.9 million for the entire year. Over the previous two years, national home prices increased by 33%.

The market was driven by record-low borrowing rates in 2020 and 2021, as well as a supply constraint due to underbuilding. The enormous demand from first-time buyers is almost as important as the limited new supply. The current housing market is also being driven by exceptionally favorable age demographic trends.

The overarching concern is whether or not the housing market will crash, and if so, when. The simple answer is that it will not crash anytime soon and we certainly don't see a housing market crash coming in 2023. Rising rates are cooling the market as some expected but the prices are still rising at a slower rate. The current trends and the forecast for the next 12 to 24 months clearly show that most likely the housing market is expected to see a positive home price appreciation.

In recent years, the price of homes has climbed dramatically. Many prospective buyers, especially those with limited financial resources, are eager to hear whether and when home prices will become more accessible. Here is when housing market prices are going to crash. While this may appear to be an oversimplification, this is how markets operate.

When demand is satisfied, prices fall. In many housing markets, there is an extreme demand for properties at the moment, and there simply aren't enough homes to sell to prospective buyers. Home construction has been increasing in recent years, but they are so far behind catching up. Thus, to see significant declines in home prices, we would need to see significant declines in buyer demand.

Demand declines primarily as a result of rising interest rates or a slowing economy in general. Ultimately, for rising interest rates to destroy home values, we'd need substantially less demand and far more housing supply than we presently have. Even if price growth moderates this year, it is extremely improbable that home prices will crash. Thus, there will be no crash in home prices; rather, there will be a pullback, which is normal for any asset class. The home price growth in the United States is forecasted to just “moderate” in 2023.

Affordability will be a concern for many, as home prices will continue to rise, if at a slower pace than the previous year. With 10 years having now passed since the Great Recession, the U.S. has been in the longest period of continued economic expansion on record. The housing market has been along for much of the ride and continues to benefit greatly from the overall health of the economy.

However, hot economies eventually cool and with that, hot housing markets move more toward balance. Housing market forecasts are essentially informed guesses based on existing patterns. While the real estate pace of last year appears to be reverting to seasonality as we enter 2023, demand is not waning.

Increasing interest rates will almost certainly have a greater impact on the national housing market in 2023 than any other factor. While sellers remain in an advantageous position, price stability and the continuation of competitive interest rates may provide some much-needed relief to buyers this year. Housing supply is and will likely remain a challenge for some time as labor and material shortages, as well as general supply chain issues, delay new construction.

The latest housing market trends show that prices are rising in most parts of the country and most price segments because of the lack of supply. Economic activities are ramping up in all sectors, mortgage rates are rising, and jobs are also recovering. The housing market remains largely a moderate seller's market due to demand still outpacing supply. The inventory of available houses continues to be a constraint on both buyers and sellers.

Forecasting home price appreciation is a challenging task. While inventory has increased slightly, it remains significantly below pre-pandemic levels and is simply unable to meet current demand. Tight supply following years of underbuilding, combined with increased demand due to remote work, and US demographics — will continue to be a factor in 2023. It will continue to be a moderate or balanced real estate market in 2023 & 2024.

References

  • https://www.realtor.com/research/
  • https://www.realtor.com/research/blog/
  • https://www.bankrate.com/mortgages/mortgage-rates/
  • https://www.blackknightinc.com/
  • https://www.freddiemac.com/research/forecast
  • https://www.yahoo.com/video/moody-home-prices-crash-20-142931780.html
  • https://www.realtor.com/research/2022-national-housing-forecast-midyear-update/
  • https://www.nar.realtor/research-and-statistics/housing-statistics/
  • https://www.corelogic.com/intelligence/u-s-home-price-insights/
  • https://www.zillow.com/research/daily-market-pulse-26666/
  • https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index.aspx
  • https://www.realtor.com/research/2021-national-housing-forecast/
  • https://www.investopedia.com/personal-finance/how-millennials-are-changing-housing-market
  • https://www.freddiemac.com/research/consumer-research/20221220-housing-sentiment-fourth-quarter-2022

Bay Area Housing Market: Prices, Trends, Forecast 2023

by

Will the Bay Area Housing Prices Drop?

This page has been updated to reflect the most recent trends in the Bay Area housing market. The Bay Area housing market, known for its high home prices, is now experiencing a slowdown. Despite record-breaking home sales in recent years, the market is starting to level out. According to data from the California Association of Realtors (C.A.R.), home sales in the state dropped by 47.7% in December 2022 compared to the same month in the previous year.

The Bay Area saw a 37.4% decrease in home sales, with three of the nine counties experiencing a decline of more than 40%. One of the reasons for the slowdown is the increase in mortgage rates, which is discouraging potential buyers. The decline in sales is also a sign that the Bay Area housing market is slowing down from the intense competition and rapid pace of the past two years.

This shift presents opportunities for buyers who may have missed out or were priced out of the market in the past. The Bay Area housing market, which was once known for its high prices and frenzied activity, is now leveling out with a decline in home sales. This shift presents new opportunities for potential buyers, who may have missed out on the competitive market of the past two years.

The rise in interest rates is affecting buyers who are looking to enter the market and purchase a property. The good news is that there is slightly more inventory available, making the market less competitive for buyers. However, the median sales price in Bay Area has remained consistently high, topping $1 million for 22 months in a row. This indicates that the cost of purchasing a property has not decreased significantly.

The median sale price for a Bay Area home last month was $1,084,500, which is 11.5% less than November's price of $1,225,000. The price also dropped by 9.6% year-over-year, when the price was $1,200,000. It is the price in the very middle of a data set, with exactly half of the houses priced for less and half-priced for more in the Bay Area real estate market. It shows that the Bay Area housing market is distinguished by high demand and a scarcity of available inventory. Due to persistent demand from the state's high-income residents, home prices have skyrocketed in this market over the past few years.

Bay Area Real Estate Market Trends

Bay Area Real Estate Market
Source: CAR

The housing prices in Bay Area dropped in December 2022. According to current trends, housing prices in the majority of Bay Area communities will decline over the next twelve months. Zillow projects a decline of 6.8% in Bay Area home prices between December 2022 to December 2023. The median sales price of this region, which includes all nine counties of Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma, is $1,084,500.

According to C.A.R., this is a 9.6 percent drop year-over-year. Sales of existing homes were down in all the major regions of the California housing market. Southern California had the sharpest decline of all regions, with sales dropping -48.3 percent from a year ago. The San Francisco Bay Area (-37.4 percent) had the third-largest drop of all regions after the Central Coast (-45.9 percent).

The housing inventory in the Bay Area is low but increasing. As of December 2022, the months of supply for existing single-family houses in the Bay Area is 1.6 months, an increase from last year when it was 0.8 months. Homes are selling below the asking price (on average). Sales Price to List Price Ratio = 96.4%, a significant drop from the last December when it was 105.4%.

Only those who do not have enough money for a down payment are delaying their purchases. Looking at the low supply of homes, high-interest rates, interested buyers may have a difficult time finding available properties in the Bay Area. Hence, sales and prices are expected to decline in 2023.

Bay Area Housing Market
Data by CAR. Forecast by Zillow (Dec 2023)

Below is the latest tabulated housing market report for the entire Bay Area released by the California Association of Realtors. The tabulated report shows the sales and prices of the Bay Area counties for December 2022. Much of the Bay Area real estate market remains in “seller's market” territory with months of supply of available single-family homes being about 1.6 months at the current pace of sales. So, if you're considering buying in the Bay Area, it's important to be informed and ready to act quickly!

Bay Area Housing Market Trends
Source: CAR.org

Bay Area Housing Market Forecast 2023

Bay Area consistently ranks among the world's most expensive real estate markets, and it is one of the most densely populated cities in the U.S. The Bay Area housing market consists of all nine counties (Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma) and 101 municipalities. The region is home to three major cities: San Francisco, Oakland, and, the largest, San Jose. Here are Bay real estate market predictions for 2023.

San Francisco-Oakland-Hayward Metro (Bay Area) Forecast up to December 2023

The typical value of homes in the San Francisco-Oakland-Hayward Metro (Bay Area) is $1,359,655, up 0.3% over the past year. Here are Zillow's latest home price projections for the Bay Area and its counties. Higher mortgage rates are playing an important role in the moderation of price growth. Bay Area (San Francisco-Oakland-Hayward Metro) home values have gone up over the past year but they are expected to decline by 6.5% from Dec 2022 to Dec 2023 (ZHVF).

  • Typical Home Values: $1,359,655 (Dec 31, 2022)
  • 1-year Value Change: +0.3%
  • 1-year Value Forecast: -6.5%
  • 29 Median days to pending
  • 0.999 Median sale-to-list ratio
  • 43% Percent of sales over list price
  • 46.9% Percent of sales under list price

Here is the graphical representation of historical home prices since the last decade.

Bay Area Housing Market Forecast
Source: Zillow

SF Bay Area Real Estate Investment Overview

Should you consider San Francisco real estate investment? Many real estate investors have asked themselves if buying a property in San Francisco is a good investment as the median price for a two-bedroom sits at $1.35 million. The high cost of real estate in San Francisco is impossible for most families to manage. Exodus is yet another problem and a new report confirms that the numbers are staggering. Online real estate company Zillow released new statistics shining a stark light on the issue this week.

Their “2020 Urban-Suburban Market Report” reveals that inventory has risen a whopping 96% year on year, as empty homes in the city flood the market like nowhere else in the country. Although this article alone is not a comprehensive source to make a final investment decision for San Francisco, we have collected some evidence-based positive things for those who are keen to invest in the San Francisco real estate market. If you can afford it, then it’s an investment that will continue to increase in value over time.

Due to low-interest rates in 2021, there was an influx of high-end luxury buyers, with certain instances where homes have been sold for $1 million over asking. Let’s talk a bit about San Francisco and the surrounding bay area before we discuss what lies ahead for investors and homebuyers. San Francisco is home to nearly 900,000 people. It is the hub of the San Jose-San Francisco-Oakland area; this larger metro area is home to nearly nine million people.

The city alternately makes the news for people paying incredibly high rents to live in boxes, the homeless problem, and the tech industry. This makes many think about why or how anyone could live there. Others would think why you’d want to buy a property now in such an overvalued real estate market. Yet we can give you ten positive signs about the San Francisco housing market. Keep on reading to find out more.

Why is housing so expensive in San Francisco?  The sky-high housing prices in San Francisco are not a new phenomenon. California, as a state, is facing a consistent housing shortage, and San Francisco is no exception. The limited availability of land and strict zoning regulations, combined with community resistance to new construction, resulted in a shortage of new housing units being built. Despite a strong economy and increasing job opportunities, San Francisco's housing prices have risen much faster than residents' incomes.

The minimum annual income required for owning a home in San Francisco was a staggering $197,970 in 2019, which is an increase of 119.1% from 2012 when affordability was at its peak. With the trend of rising housing costs and limited options for first-time buyers, the rate of homeownership in San Francisco is not expected to rebound anytime soon. It is estimated that by 2025, over 60% of the population will be renters.

However, the good news is that Zillow predicts that home prices in San Francisco may drop by 6.5% in the next year. This could provide some relief to new homebuyers and investors, as many have struggled to afford the median-priced home in San Francisco. It is worth considering the long-term potential of investing in San Francisco real estate, despite the current high housing costs. With the right strategy, investing in San Francisco properties can prove to be a profitable decision in the long run.

Bay Area's Strong Economy Propels Real Estate

Why doesn’t everyone just move out of the San Francisco housing market? Some do move, but they have a one-and-a-half to two-hour commute each way to work because they still want to work there. They just can’t afford to live there. Moreover, it is the high-tech job market that draws so many people to San Francisco and leaves many others struggling to pay the bills. San Francisco is turning into a major international city. It is a white-collar city, with fully 90.74% of the workforce employed in white-collar jobs, well above the national average.

In a report published by Google in June 2019, it announced one billion dollars of investment in housing across the Bay Area. A 10-year plan to add thousands of homes to the Bay Area. The company would be making this major investment in what it believes is the most important social issue in the bay area real estate market.

This proposition by Google will add thousands of new homes to the Bay Area real estate market over the next ten years. About $750 million would be used for repurposing Google's own commercial real estate for residential purposes. This will allow for 15,000 new homes at all income levels in the Bay area. Another $250 million investment fund would be utilized to provide incentives to enable developers to build at least 5,000 affordable housing units across the Bay area housing market.

As a move to support affordable housing initiatives, these investments will help Google plans to give $50 million in grants through Google.org to nonprofits focused on the issues of homelessness and displacement of citizens. The company also plans to fund community spaces that provide free access to co-working areas for nonprofits, improve transit options for the community, and support programs for career development, education, and local businesses.

As it is the epicenter of the technology industry, there are a lot of people with an immense amount of wealth. Wealth isn’t just limited to the uber-wealthy founders of major tech companies or successful VCs but also the general workforce, whose salaries and incomes are among the highest in the world. Overall, San Francisco is a city of professionals, managers, and sales and office workers. Also of interest is that San Francisco has more people living here who work in computers and math than 95% of the places in the US.

The predicted 2020 job market slowdown won’t result in layoffs, just a drop in job growth to 1.5 to 2 percent a year. Note that the area already has an unemployment rate of 1.2 percent below the national average. The unemployment rate in the San Francisco-Redwood City-South San Francisco MD was 1.8 percent in December 2019, down from a revised 1.9 percent in November 2019, and below the year-ago estimate of 2.1 percent.

This compares with an unadjusted unemployment rate of 3.7 percent for California and 3.4 percent for the nation during the same period. An upcoming recession is likely to have a limited effect on the SF Bay Area’s housing market. It will only temper housing price appreciation but not reduce it. These solid economic fundamentals are integral to maintaining high rental property demand and ensuring a good return on investment.

San Francisco Rental Market

You may read about the growth of Portland and other Pacific Northwest cities as talent and businesses flee the expensive San Francisco real estate market. That’s hardly impacted the San Francisco housing market, though. However, San Francisco has several advantages over its Oregon rivals, and that’s the fact that you aren’t in Oregon. Oregon passed a state-wide rent control law in 2019. This is in addition to many city regulations regarding affordable housing. In Oregon, your ability to raise rents is limited by the state.

Making matters worse, there are many more renters than property owners, so they’ll tighten the allowable rental increases and continue to hamper owners until they’re losing money. And then there is California. You can find a variety of rent control laws in the San Francisco housing market because every city takes its approach to the problem. This means that you can find suburban San Francisco rental properties where you could raise rental rates to match the market. Furthermore, rent control laws typically don’t apply to newer single-family homes.

California, on the whole, is unfriendly to landlords. It is challenging to evict people. It can take a long time to evict someone who occasionally pays the rent. Taxes are high. What does this do to the San Francisco housing market? It leaves open the possibility that you could snap up San Francisco rental properties at a relative bargain price by people who just want to quit, whether they want to sell the properties or leave the state. For example, the laws governing the San Francisco real estate market allow you to buy San Francisco rental properties and evict the tenants to turn the units into condos for sale.

SF Rental Statistics

San Francisco holds the position of the priciest rental market. It is still #1 among the top 5 rental markets in the nation. The average rental income for traditional San Francisco investment properties is well above the national average.  Like most of the Bay Area, the percentage of people renting in San Francisco is more than the owners. San Francisco has around 56 percent of its residents living in rental homes.

If condo prices are going to drop or remain flat in 2023, people will see a good investment opportunity. They’ll be able to get in at a good price and there will be an increase in demand. If you’re in the market for a condo in San Francisco, that means you could get a great deal. According to several rent reports (discussed above), rental price declines have hit the bottom and are almost flat as compared to the previous month.

San Francisco's Geography & Zoning Restrictions Limits inventory

San Francisco real estate market is perpetually constrained in terms of inventory. Several factors contribute to this, but principally the strict zoning laws prevent new development and high-rise construction throughout the city. The strict zoning laws, coupled with the fact that the SF is only seven by seven miles, make it a very constrained market and keep supply perpetually low. San Francisco sits on a peninsula, surrounded on three sides by water.

They cannot build to meet housing demand. The surrounding cities are densely built up, as well. The only way the San Francisco real estate market could meet demand is by ripping out large swaths of two and three-story buildings to build condo towers, but that’s almost impossible given local regulations. The ability to build up is limited in the surrounding suburbs because of the mountains.

The San Francisco real estate market is, for better or for worse, beholden to several competing interest groups. For those with money that own their homes and have the most influence, “not in my backyard” or NIMBY means that voters fight any proposal to replace a 2 or 3-story warehouse with a 20-story apartment or condo building. They want to protect the look and feel of the community, and through high-rise construction could start to relieve the overcrowding in the San Francisco real estate market.

The horrific stories of developers going through four years of red tape to build multi-family San Francisco rental properties deter others from even trying. Ironically, this creates significant returns for those who buy up San Francisco rental properties and can convert them to multi-family housing.

San Francisco's Environmental Movement

The environmentalist movement and California are intertwined in the public’s mind and for good reason. This is the best demonstration of its impact in Marin County. An estimated 85 percent of the county is off-limits to development. This doesn’t mean there are no homes here. It means that there are large estates that cannot be turned into tract homes. Neighbors fight any such project. This is why George Lucas had to threaten to build hundreds of homes on Skywalker Ranch when they wouldn’t let him expand his studios there. This also explains why the San Francisco real estate market cannot solve its affordable housing crisis by building in relatively open lands in Marin County.

Warehouses and factories have been converted to lofts in large, established cities around the world. They offer open spaces, high ceilings, and proximity to public transit and downtown amenities. San Francisco is no exception to this trend. The difference is the growth in high-density San Francisco rental properties which can only be found in co-living spaces. These can be considered high-end dorms.

People may rent a bunk bed and storage space for their possessions, gaining access to laundry, kitchens, and workout facilities. Several people may share a bedroom that rivals a cramped college dorm room. These facilities are booming because they cater to the new college graduates already used to living this way and willing to continue to do so to work for Big Tech firms in San Francisco.

San Francisco's Luxury Real Estate Market is Booming Despite Pandemic

Dealing in the luxury real estate market has its benefits. More affluent buyers are the demographic least affected by any economic crisis such as brought up by the Covid-19 pandemic as they have the greatest financial resources. Although home prices soaring there is an influx of wealthy buyers. A relatively high percentage of the buyers in the city are all cash (Around 40 to 60 percent of them). Those that aren’t paying all cash are putting at least 20 percent down with the ability to close fast, even with a loan.

In June, house values in California city reached a record monthly high of $1.8 million. Deep-pocketed home buyers across San Francisco bolstered the market’s rebound and pushed up transactions and house prices, according to a report Monday from Compass. The number of luxury single-family homes—defined by the report as those priced at $3 million and above—that accepted an offer in June surpassed 30, the highest level the metric has reached in two years, data from the brokerage showed.

The increase helped push San Francisco house values to a record monthly high of $1.8 million in June, 3% higher than the previous peak of $1.75 million in June 2019. You will find first-time homebuyers who are buying over $2.5 million or baby boomers looking for second homes in the $2 million range. New units are being built in the San Francisco housing market. However, the reality is that the pool of people who can afford to buy is smaller and smaller and the supply of housing is not growing with demand. They mostly consist of luxury condos and mega-mansions built for the elite of the Big Tech workforce.

Another unintended side effect of regulations on San Francisco rental properties is that it incentivizes the construction of high-end units. Investors could invest in these projects or buy properties in the hopes that they are torn down and redeveloped. This is why burned-out husks can sell for hundreds of thousands of dollars and ones with demolition permits can sell for a million or more.

San Francisco's Real Estate Appreciation Rate is High

Thanks to all the factors discussed above, the entire bay area has one of the highest appreciation rates. A major reason San Francisco’s housing prices have climbed so high over the past decade is the city’s vibrant tech industry, which started booming in 2012 (thanks, in part, to a tax incentive aimed at attracting tech companies to the city over Silicon Valley). It now attracts a skilled workforce to the city while also driving up the demand for housing and the cost of living.

The data from NeighborhoodScout reveals that San Francisco real estate appreciated 111.65% over the last ten years, which is an average annual home appreciation rate of 7.79%. This figure puts San Francisco in the top 20% nationally for real estate appreciation. And within San Francisco, some individual neighborhoods’ home values have jumped by more than 100%. Here are the five San Francisco neighborhoods that have had the biggest jump.

  • Bayview: Bayview had a $424,900 median home value in April 2009, which went to $1.07 million in Jan 2020. The current value is $1,030,643 (Zillow Home Value Index as of October 2022).
  • The Forest Knolls: In April 2009, this neighborhood’s median home value was $811,800, and it topped $1.8 million in Aug 2018. The current value is $1,874,448, up 0.3% YTY.
  • Bernal Heights: This neighborhood went from a median home value of $715,000 in April 2009 to $1.66 million in Aug 2018. The current value is $1,565,485, a drop of  6.4% YTY.
  • Mission: This East of The Castro neighborhood is in central San Francisco. The median home value was $699,900 in April 2009 and $1.53 million in Dec 2019. The current value is $1,332,707, down 5.3% YTY.
  • Potrero Hill: This neighborhood lies in the East of the Mission District. It has a median home value of $734,200 in April 2009 and it topped $1.59 million in Sep 2020. The current value is $1,376,919, down 8.2% YTY.

The good news is that if you are a home buyer or real estate investor, San Francisco has a track record of being one of the best long-term real estate investments in the nation over the last ten years. So if you bought a home in San Francisco 10 years ago, it’s very likely you’d have profited on the deal by now — in fact, in several neighborhoods, you would have a good chance at doubling your money. All the variables that contribute to real estate appreciation continue to trend upward which makes investing in SF real estate a sound decision.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in San Francisco.

Consult with one of the investment counselors who can help build you a custom portfolio of San Francisco turnkey investment properties in some of the best neighborhoods. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete San Francisco turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Please do not make any real estate or financial decisions based solely on the information found within this article. This page includes third-party content from references. Norada Real Estate Investments does not represent, warrant, or guarantee that the information such as market data and forecast is accurate, reliable, or current, even though it is thought to be reliable. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References

Market Data, Reports & Forecasts
https://www.car.org/en/marketdata/data
https://www.zillow.com/home-values/403105/bay-area-ca/
https://www.realtor.com/realestateandhomes-search/SanFrancisco_CA/overview
https://www.bayareamarketreports.com/trend/san-francisco-home-prices-market-trends-news

San Franciso (City) Cooling-off
https://www.cnbc.com/2020/09/27/san-francisco-housing-suburbs-red-hot-but-city-still-in-demand.html

City details
http://worldpopulationreview.com/us-cities/san-francisco-population

Rental Market Statistics
https://www.rentcafe.com/average-rent-market-trends/us/ca/san-francisco/
https://www.rentjungle.com/average-rent-in-san-francisco-rent-trends/
https://www.zumper.com/blog/rental-price-data/
https://www.nolo.com/legal-encyclopedia/california-rent-control-law.html
https://homeguides.sfgate.com/tenants-rights-landlord-sells-house-53734.html
https://www.npr.org/2019/02/27/698509957/oregon-set-to-pass-the-first-statewide-rent-control-bill

Should You Invest in SF
https://realestate.usnews.com/places/california/san-francisco/jobs
https://sf.curbed.com/2020/3/11/21155283/buying-a-house-san-francisco-2020
https://reason.com/2018/02/21/san-francisco-man-has-spent-4-years-1-mi
https://www.nytimes.com/2017/01/21/us/san-francisco-children.html
https://www.latimes.com/politics/la-pol-ca-marin-county-affordable-housing-20170107-story.html
https://www.citylab.com/equity/2016/04/blame-geography-for-high-housing-prices/478680
https://www.theguardian.com/business/2016/aug/05/high-house-prices-san-francisco-tech-boom-inequality
https://www.mercurynews.com/2019/03/14/bay-area-job-market-slowdown-experts-predict-google-apple-amazon-facebook
https://www.washingtonpost.com/news/morning-mix/wp/2015/04/17/george-lucas-wants-to-build-affordable-housing-on-his-land-because-weve-got-enough-millionaires

Luxury market
https://www.mercurynews.com/2014/03/05/in-the-bay-area-million-dollar-homes-are-torn-down-to-start-fresh
https://www.sfgate.com/realestate/article/863-carolina-street-potrero-hill-tear-down-listing-13844146.php
https://www.housingwire.com/articles/36691-la-demolishing-affordable-housing-building-luxury-housing-instead

Blog Posts

Contact

Norada Real Estate Investments 30251 Golden Lantern, Suite E-261 Laguna Niguel, CA 92677

(949) 218-6668
(800) 611-3060
BBB