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Boston Real Estate Market: Prices, Trends, Forecast 2023

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Boston Housing Market Trends for 2023

The Greater Boston housing market has been cooling down for a while, with sales of single-family homes and condominiums falling both annually and monthly. However, in January, buyer activity intensified ahead of the spring market, with improved inventory levels and modestly declining mortgage rates from their peak last fall. Here are the latest trends in the Boston housing market for 2023, according to the Greater Boston Association of REALTORS® (GBAR).

Sales have fallen in the single-family home market

Sales in the single-family home market have fallen for eight consecutive months, decreasing 33.8 percent from 755 homes sold in January 2022 to 500 this January. Sales volume also reflects a 44.8 percent decline from the 905 homes sold in December, and is the lowest January sales total in 14 years, dating back to January 2009 when 469 homes were sold.

Condominium sales have also fallen

Condominium sales have fallen, although more modestly than single-family homes, as listings are more plentiful, exceeding the number of single-family homes for sale by almost 40 percent as of January 31. On an annual basis, condo sales decreased 24 percent, from 728 units sold last January to 553 in January 2023, and fell 23.2 percent on a month-to-month basis from 720 units sold in December. Last month was the slowest January for condo closings since 2015 when 486 condos sold.

Prices remain below record highs

Median selling prices remain below the record highs reached last June, with the median price of single-family homes down 6 of the past 7 months on a monthly basis. The median selling price declined on an annual basis by 2.4 percent, from $725,000 in January 2022 to $707,250 this January for single-family homes. Conversely, the median selling price for condominiums rose, as more buyers turned to the more modestly priced condo market when mortgage rates continued to climb.

Most properties sold for less than their asking price

Most properties sold in January went for less than their asking price, with the typical single-family home selling for 96.6 percent of its original list price, and the typical condominium garnering 97.8 percent of its original list price. Buyers can't afford as many homes as they could 12 months ago, so many are either unable or unwilling to get involved in bidding wars.

Active listings have improved

Inventory levels have improved, with active listings for single-family homes rising on an annual basis for nine consecutive months in January, climbing 55.5 percent from 595 homes for sale in January 2022 to 925 last month. In addition, condominium listings increased 12.7 percent in the past 12 months from 1,144 units for sale in January one year ago to 1,289 in January 2023. The number of properties for sale also improved on a month-to-month basis by 8 percent for single-family homes and 13 percent for condos.

ALSO READ: Massachusetts Housing Market Forecast 2023

Buyers are returning to the market

With inventory levels expected to improve further in the coming months, buyers are returning to the market. “Buyers are back and eager to get a head start on the spring market now that mortgage rates have retreated a bit,” said GBAR President Alison Socha. “There has been a steady uptick…”

The above trends show that the Boston housing market has been cooling down for some time, but buyer activity has intensified ahead of the spring market, and prices remain below record highs. Most properties sold in January went for less than their asking price, with active listings improving, and buyers returning to the market. These trends are expected to continue in the coming months, making Boston a popular destination for both tourists and job seekers alike.

Additionally, Boston has a rich history and culture that attracts visitors from around the world. From the Freedom Trail to Fenway Park, there are countless attractions and landmarks to explore. Furthermore, Boston is home to several world-renowned universities such as Harvard, MIT, and Boston University. As a result, the city has a vibrant academic community and a highly educated workforce.

This has led to the growth of several industries such as biotechnology, healthcare, and finance. In recent years, Boston has also become a hub for startups and innovation. The city has a thriving startup ecosystem and is home to several accelerators, incubators, and venture capital firms. This has led to the emergence of several successful startups in various industries, including technology, healthcare, and e-commerce.

Overall, Boston's combination of history, culture, education, and innovation makes it an attractive destination for visitors, students, job seekers, and entrepreneurs. As the city continues to grow and evolve, it will undoubtedly remain a top destination for years to come.

Suffolk County, MA Housing Market Trends 2023

Suffolk County is a county in Massachusetts and consists of 22 cities. The county seat is Boston, the state capital and the largest city in Massachusetts. The following housing market trends are based on single-family, condo, and townhome properties listed for sale on realtor.com. Land, multi-unit, and other property types are excluded. This data is provided as an informational resource only.

In January 2023, the median list price of homes in Suffolk County, Massachusetts was $799K, trending up 6.5% year-over-year. The median listing price per square foot was $761. The median sale price was $700K. Last month's supply and demand were similar to that of a seller's housing market. The market had a total sales to total listings ratio above 0.2 which tends to favor sellers.

Homes in Suffolk County, MA sold for approximately the asking price on average last month. Sale-to-List Price Ratio: 99.13%. Ideally, a buyer would prefer a sale-to-list price ratio that’s closer to 90% whereas a seller would always prefer scenarios that can yield a ratio of 100% or higher.

  • There are 22 cities in Suffolk County.
  • South Boston has a median listing price of $949K, making it the most expensive city.
  • Chelsea is the most affordable city, with a median listing price of $489.9K.
  • The city of Boston has a median listing price of 849K, trending up 6.9% year-over-year.
  • The median sale price in Boston is $727K.
  • Homes in Boston, MA sold for approximately the asking price on average last month.
  • There are 65 neighborhoods in Boston.
  • Back Bay has a median listing price of $2.7M, making it the most expensive neighborhood.
  • Commonwealth is the most affordable neighborhood, with a median listing price of $468K.

Boston Rental Market Trends

The Zumper Boston Metro Area Report analyzed active listings last month across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Massachusetts one bedroom median rent was $2,246 last month. Cambridge ranked as the most expensive city in the metro with one bedrooms priced at $3,110 while Brockton was the most affordable city with one bedrooms priced at $1,340.

The Fastest Growing Cities For Rents in Boston Metro Area (Y/Y%)

  • Newton had the fastest growing rent, up 35% since this time last year.
  • Medford saw rent climb 34.6%, making it second.
  • Somerville was third with rent increasing 23.8%

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

  • Brockton rent had the largest monthly growth rate, up 6.3%.
  • Somerville saw rent increase 6.1% last month, making it second.
  • Framingham had the next largest rent price growth rate, climbing 4.5%.
Boston Rental Market Trends
Source: Zumper

Boston Real Estate Market Forecast 2023

What are the Boston real estate market predictions for 2023? With steady job growth, huge gains in home equity, and a large population of millennials now in their peak homebuying years, it is predicted that the demand will stay strong, but sales are likely to be down from historic highs while price appreciation should fall to more modest levels. Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years.

The Boston housing market has seen steady growth in recent years, and the trend is expected to continue in 2023. According to the latest data released by Zillow, the average Boston-Cambridge-Newton home value is $606,309, up 5.4% over the past year.  Before we dive into the Boston housing market trends, it's essential to understand the Zillow Home Value Index (ZHVI). The ZHVI is a measure of home values across various geographies and housing types. It is built by measuring monthly changes in property-level Zestimates, which captures both the level and home values.

Boston-Cambridge-Newton Key Takeaways

The following are some key takeaways from the latest Zillow data for Boston-Cambridge-Newton:

  • Typical Home Values: $606,309
  • 1-year Value Change: +5.4% (Data through January 31, 2023)
  • -1.5% 1-year Market Forecast (January 31, 2023)
  • 1.000 Median sale-to-list ratio (December 31, 2022)
  • 45.5% Percent of sales over list price (December 31, 2022)
  • 42.8% Percent of sales under list price (December 31, 2022)
  • 16 Median days to pending (January 31, 2023)

Market Overview and Forecast

Based on the data provided by Zillow, the Boston housing market is expected to experience a slight decrease in prices over the next twelve months. The market overview forecast for 2023 is -1.5%. While the housing market has been steadily growing in recent years, rising interest rates are expected to curb the soaring prices.

Despite the slight decrease in prices, Boston-Cambridge-Newton remains a competitive market with a median sale-to-list ratio of 1.000, indicating that homes are selling closer to their listing price. Additionally, 45.5% of homes sold above their listed price, indicating that there is still a high demand for homes in the area.

Furthermore, the median days to pending was 16, indicating that homes are not staying on the market for long, and there is a quick turnaround time for sellers.

Overall, the Boston housing market is expected to remain competitive in 2023, with a slight decrease in prices but still a high demand for homes. Working with a local partner who understands the market, such as a Zillow agent, can help buyers and sellers navigate the market and make informed decisions.

Boston Housing Market Forecast
Courtesy of Zillow.com

Boston Real Estate Investment: Should You Invest in Boston?

Successfully investing in real estate — whether you are in Boston or anywhere else in the world — is all about correctly timing the market. Knowing when to enter the real estate market can often be a bit of a challenge. Should you invest in Boston real estate? Is Boston a Good Place For Real Estate Investment? Many real estate investors have asked themselves if buying a property in Boston 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.

Boston is a fairly walkable city in Suffolk County with a population of approximately 700,000 people, making the Boston housing market rather large on its own. It is a thriving city, which makes it the best location to buy an investment property at any point in time including the present. Since it contains around 80% of all residents of Massachusetts, it is certainly the first place that people choose to research, when they want to invest in the state.

The broader Boston Metropolitan Area or Greater Boston is home to more than four million people. Boston real estate has been one of the best long-term real estate investments in the nation. The Boston real estate market is dominated by rental properties and Airbnb is a great pick for starters. The city is a wonderful place to call home. People want to live in the city, yet the number of new homes being built is relatively low.

Boston's real estate market is vibrant, and plenty of buyers are offering more than the asking price when they love a property. Throughout the Greater area of Boston, numerous investment properties are waiting to be revitalized by a wise investor. But for most people, Boston is a high-priced real estate market, though it isn’t as expensive as Washington DC, San Francisco, or New York City.

Greater Boston is still an expensive place to buy a house, but the years of relentless price increases may be nearing an end. It’s too soon to know if this trend is a blip or if the Boston housing market heading toward some stability. However, new investors should always consider cheaper markets for investment. Because of the large number of students, and college and university faculty, it is a no-brainer for savvy investors to invest in a rental property in Boston.

Rental property in Boston is guaranteed to get a lot of demand from tenants – whether an apartment or a condo or a single-family home.  Any investment property is likely to get rented out fast. Airbnb rentals are one of the best options for real estate investment in Boston. Let’s find out more about it.

Boston has been one of the hottest real estate markets in the country for many years. It is not just an expensive real estate market on the East Coast. It is one of the few in the region not expected to see significant declines. And there are areas we can expect to see significant appreciation due to the sheer demand for affordable housing with easy access to major arteries or public transit.

Boston is an old, East Coast city. We’ve already mentioned the height law and the challenges faced by getting anything approved even with the mayor behind it. Unfortunately, Boston’s entrenched bureaucracy limits the redevelopment of large garages and other major projects that could bring thousands of units to the Boston real estate market.

If it takes ten years (or more) for the Boston Harbor Garage to be redeveloped, and it is far from the only project on hold, then you can be certain to see high returns on any redevelopment project that creates more housing units within existing buildings. Whether this is converting warehouses into lofts or single-family homes into multi-family housing, if you don’t face major roadblocks, you’ll see a great return on the investment.

If you are looking to make a profit, you don’t want to buy the most expensive property on the Boston real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in Boston that you might move into or sell at retirement in the future. Either way, knowing your profit potential and purpose is the first thing to consider.

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

Boston is Attractive to Millennials

Millennials are a market real estate agents want to cater to since they’re buying homes in mass. And Boston is considered one of the cities Millennials love. The challenge for Millennials is affording a market where the median home costs around $740,000. Yet the demand from young and old alike means there’s very little inventory, much less housing stock considered affordable.

Boston isn’t just attracting young people from across the country – it is also attracting immigration from around the world. The city has seen population growth every year since 2004 in part because of the influx of immigrants attracted to healthcare, biotech, and educational jobs here.

Millennials and older adults alike are choosing to spend more on an apartment, condo, or house to avoid spending hours each week commuting. It is seen as an investment in their quality of life. This explains why downtown Boston is seeing price increases far higher than the rest of the Boston metro area.

Downtown enclaves sell for much more per square foot than properties at the edge of town or in the suburbs; the price hit a thousand dollars a square foot recently. That’s expensive for the U.S. but half the price you’d pay for a comparable apartment in New York City. Ironically, the high price of real estate in NYC explains why many financial firms are expanding in the relatively cheaper city of Boston, home of the mutual fund.

Boston's Job Market Will Keep People Coming

Boston was ranked the best city in the U.S. for startups. A large number of world-class universities provide a large number of skilled workers, many of whom work in medicine, finance, and biotech. The constant creation of new jobs will continue to attract residents and help the city retain the ones it already has. The economy is dominated by services, which usually pay high wages and attract more and more job seekers. All these factors have created a hot housing market in Boston, dictated by both home buyers and tenants.

Guaranteed Real Estate Appreciation

Strong demand plus limited inventory and limited space to grow will guarantee appreciation of any property you buy in the Boston real estate market. Prices are going to appreciate in 2021 by 6-8%. This is only a continuation of the steady property increases seen since the 2008 property crash. This is partly because the market is so built-up already that land prices are high.

Then there’s the fact it can take a long time to get approval to build up. Boston’s mayor is facing flak for wanting to waive the building height rule just once. Ironically, the Boston shadow law that limits the height of buildings in the Boston housing market has the greatest impact on the downtown areas where people most want to see the tall apartment and condo towers built.

The increase in mortgage interest rates is putting pressure on home buyers, limiting what they can afford. This in turn is leading home builders to cut prices on new properties. According to the Washington Post, Boston home builders are cutting the price of properties on the market by 6%. If you have financing or the cash to invest in the Boston real estate market, you can’t pass up a deal like this.

Boston's Rental Market

The Boston real estate market and its environs include a whopping hundred universities, colleges, and trade schools. There are more than 150,000 college students in Boston and Cambridge alone. You could buy properties across the Boston real estate market and cater to students, and your market is so diverse that you’ll always see demand. Boston is landlord-friendly compared to markets like NYC. There is no limit on late fees.

You don’t have to provide notice before entering the apartment. The state doesn’t require rental licenses to become a landlord. There aren’t laws regarding re-keying or pets. A written rental agreement is only mandatory if your tenant is staying for more than 12 months. Evictions are allowed if they are not paying the rent, violating the lease, or breaking the law. You can start evictions two weeks after the non-payment of rent. Since evictions can take weeks, screen tenants well for any property in the Boston housing market.

Rents in the inner Boston Core hit 2800 a month. All those grad students, young single professionals, and highly paid power couples are bidding up the limited housing stock available. If you can find a reasonably affordable property in the Boston real estate market and convert it into multiple units or a more upscale clientele, you’ll enjoy significant cash flow from the property. Any future real estate investor in Boston should also have in mind that the expected rental income for both traditional rentals and Airbnb rentals is high.

The combined effect of high property prices and high rental income leads to a decent return on investment for Boston rental properties. The taxes here are high compared to the U.S. average but lower than in several other states in the area. The income tax rate is much lower than in New York, and property taxes are far lower than in New Jersey. Therefore, you’ll clear more here than in some of the other large Northeast markets.

Luckily for real estate investors in Boston who are interested in Airbnb rentals, they are fully legal in the Boston real estate market and are not even taxed at the moment. Recent discussions among Massachusetts lawmakers failed to result in an agreement on taxes to be charged on short-term rentals.

Latest Rental Market Statistics: According to RENTCafe, 51% of the households in Boston are renter-occupied, which is a significant population. More than 95% of the apartments fall in the range of $2,000 or more, which shows how high are the rents in Boston. As a rental property investor, it should be on your list of due diligence. Do the math and find out the best neighborhood & property that suits your investment goals.

The average size for a Boston, MA apartment is 812 square feet with studio apartments being the smallest and 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 February 26, 2023, the average rent for a 1-bedroom apartment in Boston, MA is currently $2,700. This is a 1% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Boston decreased by -10% to $2,100. The average rent for a 1-bedroom apartment decreased by -10% to $2,700, and the average rent for a 2-bedroom apartment decreased by -6% to $3,200.

  • Two-bedroom apartment rents average $3,200 (a 6% increase from last year).
  • Three-bedroom apartment rents average $3,650 (a 9% increase from last year).
  • Four-bedroom apartment rents average $4,500 (a 13% increase from last year).

Boston Investment Properties: Where To Buy?

In any real estate investment, cash flow is gold. Boston is the top market where real estate investments are safe and have high rates of return. The Boston housing market sees steady population growth, faces limited supply, and can’t go vertical.

This means that those who invest in the Boston real estate market will see decent cash flow from nearly any property and guaranteed appreciation. Allston is an excellent neighborhood to buy an investment property in Boston as the median property price is well below the city level. Airbnb rentals are the best option for real estate investing in Boston.

Good cash flow from Boston 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 Boston in a growing neighborhood would be key to your success.

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

There are 65 neighborhoods in Boston. As we write this, Downtown Boston has a median listing price of $2.3M, making it the most expensive neighborhood. Commonwealth is the most affordable neighborhood, with a median listing price of $522,000. Some of the popular neighborhoods in Boston are Cambridge, Medford, East Boston, West Roxbury, Allston, Dedham, South End, Dorchester, Jamaica Plain, Roslindale, South Boston, Charlestown, Braintree, North End, and Hyde Park.

The best neighborhoods in the Greater Boston area for real estate investment are relatively affordable. They will offer a good rate of appreciation because of the influx of people moving there for affordable housing. They'll offer strong and rising rents in 2022 and beyond.

Roxbury has seen roughly 125 percent inflation over the past five years, a full 25 percent more price inflation than Boston as a whole. This is because Roxbury remains a relatively affordable area attracting people who are being priced out of rapidly gentrifying Boston. Affordable housing isn't the only reason why we can expect people to move here. For example, the Benjamin Franklin Institute of Technology is considering moving to an available site here.

Northeastern University is considering building student housing here, as well. When Blue Hill Avenue is upgraded, the area will have better bus service connecting it to the rest of Boston. Furthermore, Roxbury is slated for rapid development. For example, there are several opportunity zones here.

The biggest ones are near Ruggles and Roxbury Crossing. Note that the same trends are driving up rents and property values in Jamaica Plain and Dorchester, though we predict the greatest gains near the Nubian Square developments.

East Boston was once a cheap neighborhood because it was so close to the airport and factories. East Boston is in the middle of a building boom, as the old industrial waterfront gains office buildings and codon towers. Yet it has room for massive expansion thanks to the potential at Suffolk Downs.

This will create an explosion of new development, though demand for these properties will be weak for the next few months. This influx of new development is why the area has seen only a 105 percent appreciation over the past 5 years. These properties would be right off the Blue Line. Expect property values to skyrocket once there is regular public transit in the area.

East Boston is in sharp contrast to the slowly gentrifying South End, as young white professionals move into the area, driving up rents and property prices until they move somewhere else.

But it is attracting people who snap up 800-square-foot condos that may yet cost less than half a million dollars. Others snap up the new luxury apartments at Jeffries Point, because of its views of downtown Boston. Note that the area is connected to mainland Boston through the Sumner Tunnel.

Fort Point is a Seaport neighborhood. However, it is in the process of becoming a life sciences hub. Construction could turn the mostly vacated General Electric headquarters building into a life sciences campus. GE has moved its headquarters into one of the remaining buildings.

A former Proctor and Gamble Building is going to become another life sciences building. Expect rents in the area to rise along with the increasing average income in the area. Furthermore, the area is going to gentrify as new mixed-use projects that were recently approved are built. They won't just be on the waterfront anymore. They'll have several new parks, as well.

Here are the ten neighborhoods in Boston having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

  1. Roxbury Northeast
  2. Washington Park
  3. Central Square
  4. Central Maverick Square Paris Street
  5. East Boston
  6. Harbor View Orient Heights East
  7. Jeffries Point
  8. Roxbury Northwest
  9. Harbor View Orient Heights West
  10. Roxbury East

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.

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 Boston.

Consult with one of the investment counselors who can help build you a custom portfolio of Boston investment properties. Depending upon the availability, we can help you to find “Cash-Flow Rental Properties” located in some of the best neighborhoods of Boston.

Not just limited to Boston or Massachusetts but you can also invest in some of the hottest real estate markets for rental properties in the United States. Apart from the Boston real estate market, you can also invest in Jersey, City. The Jersey City housing market is seeing significant growth because it is close to New York City but isn’t NYC. It has several points in its favor, too, like a good job market and local amenities.

Renters and buyers alike are taking notice and helping to make Jersey City the fastest-growing metropolitan area in the state. Jersey City has been busy redeveloping old neighborhoods, encouraging a mix of new retail, luxury housing, and affordable housing. Jersey City is notable for the major redevelopment on the waterfront, known as the Shore, while properties there enjoy a great view of Manhattan.

Jersey City takes things one step further and is setting up a “Friendly Building Program”, where developers build entire buildings were renting through AirBnB is allowed. This is an innovative development in the Jersey City housing market. 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 Boston turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

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 Boston real estate investors. 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.gbreb.com/
https://www.gbreb.com/GBAR/Housing-Market-Data/
https://www.zillow.com/boston-ma/home-values
https://www.realtor.com/realestateandhomes-search/Boston_MA/overview
https://boston.curbed.com/boston-market-reports
https://www.bostonmagazine.com/property/2018/01/24/boston-zillow-housing-crisis

Pre-COVID stats
https://www.bostonmagazine.com/property/2019/01/31/expensive-housing-market/
https://www.bostonmagazine.com/property/2020/03/16/boston-home-prices-doubled/
https://www.redfin.com/city/1826/MA/Boston/housing-market

Landlord friendly & Rental Statistics
https://www.avail.co/education/laws/massachusetts-landlord-tenant-law
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
https://www.rentjungle.com/average-rent-in-boston-rent-trends/
https://www.rentcafe.com/average-rent-market-trends/us/ma/boston/

Reasons to Invest
https://nextcity.org/daily/entry/boston-mayor-waive-building-height-rule-park
https://www.fool.com/taxes/2017/10/09/7-states-with-the-highest-income-tax.aspx
https://www.bostonmagazine.com/property/2018/05/30/boston-renting-crisis
http://charlesgaterealty.com/2018/11/29/boston-strong-the-fast-growing-boston-housing-market
https://www.forbes.com/sites/ellenparis/2018/01/29/2018s-housing-market-looks-good-unless-youre-a-first-time-millennial-buyer/#78138a011885

Bureaucracy
https://boston.curbed.com/boston-development/2018/2/22/17037854/boston-building-height-limit

The Best Neighborhoods for Boston Real Estate Investment
https://www.bostonmagazine.com/property/2020/03/16/boston-home-prices-doubled/
https://boston.curbed.com/boston-development/2020/1/7/21051943/boston-neighborhoods-to-watch
https://www.boston.com/news/local-news-2/2020/07/09/boston-ranked-third-most-gentrified-city
https://www.bostonglobe.com/2020/07/27/business/plans-major-project-along-fort-point-channel-are-moving-ahead/

Las Vegas Real Estate Market: Prices, Trends, Forecast 2023

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Las Vegas Housing Market Trends in 2023: Opportunities and Challenges

The Las Vegas housing market has been through ups and downs over the past few years, with the pandemic having a significant impact on the market. As of January 2023, the market is facing a mix of opportunities and challenges for both buyers and sellers. In this blog post, we'll discuss the housing market trends in Las Vegas based on the report released by Las Vegas Realtors.

The decline in Single-Family Home Sales

According to the report published by Summerlincommunities.com (Data by LVR) on Las Vegas Real Estate Market Update, single-family home sales in Las Vegas decreased by 13.6% from December 2022 and by 48.3% from January 2022. However, the median sales price of previously owned single-family homes remained flat at $425,000, the same as in December, but down 2.3% from January 2022. This could be an opportunity for buyers who have been waiting for a drop in prices, but sellers may face challenges in getting their homes sold quickly.

Increase in Median Sales Price of Condos and Townhomes

The report states that the median sales price of condos and townhomes increased to $255,000 in January, up 3.3% from December and 4.9% from the prior year. This increase may be due to a higher demand for more affordable housing. Buyers looking for more affordable options may find condos and townhomes to be a good choice, while sellers may have a better chance of selling their properties quickly.

Increase in New Listings

The report states that new listings in January increased to 2,477, up 47.7% from December 2022, but down 14.6% from the prior year. This could be an opportunity for buyers to have more options to choose from, but sellers may face challenges in getting their homes sold quickly.

Housing Supply Continues to Increase

The housing supply in Southern Nevada was 4.1 months of inventory in January, up 1.6% from December and up 478.5% from the prior year. This may indicate a shift towards a buyer's market, where buyers have more bargaining power. Sellers may need to be flexible and open to negotiation to get their homes sold.

New Builder Incentives

Several new builder incentives were offered in January 2023, providing opportunities for buyers to save money. Taylor Morrison provided limited-time finance savings on select homes, offering an interest rate of 2.49% for year 1, 3.49% for year 2, and 4.49% for year 3. Toll Brothers offered a National Sales Event with incentives on select quick move-in homes, while Pulte offered special financing on a 30-year fixed rate of 4.25% for quick move-in homes.

Richmond American Homes provided 30-year fixed-rate financing at 4.875% for FHA and VA loans and 5.5% for conventional loans. Finally, Tri Pointe Homes offered limited-time below-market conventional 30-year fixed 3-2-1 buy-down with a first-year interest rate of 2.99%.

Summary

The Las Vegas housing market in 2023 presents a mix of opportunities and challenges for both buyers and sellers.  Single-family homes are still in high demand, and despite the decline in sales, the median sales price has remained stable. However, the significant increase in housing supply may lead to a more balanced market, with buyers having more choices and negotiating power.

On the other hand, the condo and townhome market has seen a slight increase in median sales price, which may be due to a higher demand for more affordable housing. This trend is likely to continue as more millennials and first-time homebuyers enter the market. The luxury market has seen an increase in sales volume and median sales price, indicating that high-end buyers are still active in the market. This trend is expected to continue, as Las Vegas remains an attractive destination for those seeking luxury homes and a desirable lifestyle.

Overall, the Las Vegas housing market in 2023 presents a mix of opportunities and challenges for both buyers and sellers. Buyers can take advantage of the increasing housing supply and new builder incentives, while sellers may need to price their homes competitively to attract buyers in a more balanced market. It's important to work with an experienced real estate agent who can guide you through the market trends and help you make informed decisions.

On a monthly basis, here's how the Las Vegas housing market ended

Las Vegas Housing Market Trends
Source: Las Vegas REALTORS®

Las Vegas Real Estate Market Forecast 2023

What are the Las Vegas real estate market predictions for 2023? The Las Vegas-Henderson-Paradise Metro housing market has seen a positive trend, with the average home value reaching $396,342, which represents an increase of 4.5% over the past year. This is a good indicator of a strong real estate market, showing that demand for housing in Las Vegas is on the rise. The Zillow Home Value Index (ZHVI) is a key metric used to measure changes in property values, and it has been steadily increasing in Las Vegas over the past few years, as shown in the chart above.

According to Zillow's data, the median sale-to-list ratio was 0.984 as of December 31, 2022, indicating that homes were selling very close to their list price. Additionally, only 16.5% of sales were above the list price, which suggests that there is less competition among buyers in the market. On the other hand, 62.8% of sales were below the list price, indicating that buyers are in a good position to negotiate favorable terms.

The median days to pending is 53 days, which is a relatively short time frame, indicating that homes are selling quickly in Las Vegas. This is a good sign for sellers, as it suggests that there is high demand for housing in the area. Zillow's market forecast predicts a 3.7% decrease in home values over the next year. Higher interest rates may help curb soaring prices, but it also increases the cost of borrowing

Based on the data provided, the Las Vegas housing market in 2023 is likely to remain strong, with rising home values and high demand. The market is currently favorable for both buyers and sellers, as homes are selling quickly, but buyers still have some negotiating power. However, the Zillow market forecast predicting a 3.7% decrease in home values over the next year could be a concern for homeowners who are looking to sell their property.

This decrease in value may be due to higher interest rates, which could make it more difficult for buyers to secure financing and afford homes. Despite this potential decrease, the Las Vegas housing market is still expected to remain relatively stable and strong overall. The city's growing population, strong job market, and desirable lifestyle all contribute to the demand for housing in the area.

Therefore, both buyers and sellers should continue to monitor the market closely and make informed decisions based on the data available to them. It may be a good time for sellers to list their homes, while buyers may want to act quickly to take advantage of current market conditions before interest rates increase.

Las Vegas Real Estate Market Forecast
Courtesy of Zillow.com

Las Vegas Real Estate Market: Is It A Good Place For Investment?

Now that you know where Las Vegas is, you probably want to know why we're recommending it to real estate investors. Is Las Vegas a Good Place Real Estate Investment? Many real estate investors have asked themselves if buying rental property in Las Vegas is a good investment. You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Las Vegas housing market's historical and current trends for answers on why to put resources into this market.

Las Vegas is a minimally walkable city in Nevada. It is the 32nd most walkable large city in the US with 583,756 residents. Las Vegas has some public transportation and does not have many bike lanes. Downtown Las Vegas, home to the casinos and hotels, is the city's most accessible neighborhood, but housing is sparse there. In 2018, the Las Vegas housing market was so hot that it outperformed the best U.S. housing markets like Seattle. The Las Vegas real estate market is entirely brimming with new businesses.

It isn't just about casinos, medicine is a growing industry as well. The University of Las Vegas and Zappo's, the internet shoe store, is also based in Vegas. Its friendly business environment is propping up the economy and helping towards the positive Las Vegas real estate market trends. The new businesses are propping up at a much faster rate than the national average.

Las Vegas has a mixture of owner-occupied and renter-occupied housing units. It is a big rental property market. According to Neighborhoodscout.com, a real estate data provider, three and four-bedroom single-family detached homes are the most common housing units in Las Vegas.  Other types of housing that are prevalent in Las Vegas include large apartment complexes, duplexes, rowhouses, and homes converted to apartments.

Las Vegas is the destination point of millions of visitors, the town is famous for its vibrant nightlife, exciting gaming action, and the natural allure of the beautiful desert that surrounds the greater metropolitan area. Tourists pour billions of dollars in Southern Nevada through which thousands of tourism jobs are supported.

Let's learn more about Las Vegas and find out why one should invest in this sturdy real estate market. These things make the Las Vegas real estate market stand out when it comes to choosing a place to invest in 2020 and beyond. Keeping aside the short-term impact of the ongoing pandemic, let's take a look at the number of positive things going on in the Las Vegas real estate market which can help investors who are keen to buy an investment property in this city.

Why Is Las Vegas A Good Place For Real Estate Investment?

THE CITY & ITS DEMOGRAPHICS

  • Las Vegas is a beautiful city of million-lightbulb signs and fantastic architecture.
  • It is an internationally renowned major resort city.
  • It is known primarily for its gambling, shopping, fine dining, entertainment, and nightlife.
  • It is often known as “The Entertainment Capital of the World” – because of its “broad scope of entertainment options including nightlife, shows, exhibits, museums, theme parks, pool parties, and so on.
  • Las Vegas has 68 beautiful parks.
  • It is one of the country's leading vacation destinations, drawing far more tourists than the Grand Canyon or Yellowstone National Park.
  • More than 41 million people visit Las Vegas each year.
  • Over 22,000 conventions are held in Las Vegas every year.
  • It has been one of the fastest-growing major cities in the United States.
  • It is the most populated city in the state of Nevada and the 28th-most populated city in the United States.
  • The current metro area population of Las Vegas in 2020 is 2,699,000, a 2.98% increase from 2019 – Macrotrends.net.

THE HOUSING MARKET & PRICES

  • The most prevalent building type in Las Vegas is single-family detached homes.
  • The city has a mixture of owners and renters, with 51.07% owning and 48.93% renting – “Neighborhoodscout.”
  • Las Vegas is in the top 10% nationally for real estate appreciation.
  • Las Vegas real estate has appreciated by 244.86% over the last decade.
  • It amounts to an average annual home appreciation rate of 13.18%.
  • Home values have gone up 14.2% over the past year (ZHVI)
  • The median sold price of homes in Southern Nevada is $425,000.
  • 1-yr forecast: -3.7% (ZHVF) until January 2024.
  • Las Vegas rental real estate market remains healthy and affordable for most renters.
  • There's also no slowdown on the horizon for the number of people moving to Las Vegas.

THE ECONOMY

  • The Las Vegas Valley as a whole serves as the leading financial, commercial, and cultural center for Nevada.
  • Las Vegas is home to more than half of the 20 largest hotels in the world.
  • There are more than 150 casinos and roughly 150,000 hotel rooms in the Las Vegas valley area.
  • Las Vegas annually ranks as one of the world's most visited tourist destinations – famous for its mega casino hotels and associated activities.
  • A diversified economy is driven by health-related, high-tech, and other commercial interests.
  • The primary drivers of the Las Vegas economy are tourism, gaming, and conventions, which in turn feed the retail and restaurant industries.
  • Mining constitutes the mainstay of the region's industrial sector.
  • Most of the manufacturing plants are concentrated in the communities of Henderson and North Las Vegas.
  • No state tax for individuals or corporations, as well as a lack of other forms of business-related taxes, have aided economic growth.
  • Construction is also a significant component of the economy.
  • The government is the metropolitan area's single largest employer.

These are just some of the highlights that make Las Vegas a great place to live and invest in real estate. The list can go on and on. Before the coronavirus pandemic hit the state, the Las Vegas real estate market forecast was as hot as the desert heat in Nevada. Keeping aside this crisis for a moment, the housing market in this region provides an excellent opportunity for investors. They are expressing confidence in the stable housing prices and the number of available housing units on the market.

New businesses are being created at a much faster rate than the national average. Las Vegas is also a strong rental market. Nearly 40% of the population rents in Las Vegas. Rental properties near these new businesses will benefit greatly due to the increasing tenant pool and the general improvement in economic activity that they bring. The first half of the previous year saw a huge increase in the demand for housing in Las Vegas, Nevada.

The inventory of homes has further decreased from last year. The current local housing inventory in Las Vegas is just over a two-month supply of homes available for sale. The high demand is followed by an increase in population, as well as an overall improvement of the economy in the area. All these factors have had a huge impact on the Las Vegas housing market, which is considered one of the hottest markets in the nation. Las Vegas has experienced several booms in its history, and it saw an incredible real estate bust during the Great Recession.

Las Vegas' recovery hasn't made the same headlines as the 50% or greater declines in home values did a decade ago. Yet its recovery shouldn't keep investors away. For savvy investors, the Las Vegas real estate market is both stable and predictable. Let's find out the latest trends and forecasts.

Las Vegas Home Prices Are Low Relative to Recent Highs

There have been articles claiming that Las Vegas is ready for another bust. However, prices are declining somewhat as new housing stock comes onto the market. This explains why the inventory of unsold existing homes doubled at the end of 2018. Yet the demographic trends that keep the Las Vegas housing market so hot aren't stopping.

This means that the Las Vegas real estate market is seeing a lull with a guarantee that the price will start to rise. The Las Vegas housing market is a great place for real estate investment. It remains relatively affordable than the expensive seller markets in the US. When people lose their jobs in great numbers, home prices crash as they did in Las Vegas a decade or so ago.

Homes went from an average price of over $300,000 to less than $150,000. Home prices have recovered, though due to inflation, they remain well below historic peaks. Likewise, Las Vegas foreclosure rates have fallen but they remain high by national standards. Around one in a thousand homes are foreclosed on each month.

Las Vegas Housing Prices Are Rising Slowly but Surely

The wide-open deserts around Las Vegas constrain the Las Vegas real estate market. The federal government owns the vast majority of the state. The Clark County government asked the federal government to allow them to take over 38,000 acres of land and start building housing. Nevada Congressional delegation has to ask the Bureau of Land Management, and they may take years to give their permission if they ever do.

This means that Las Vegas is surrounded by a lot of open lands, but it cannot simply expand to meet demand. This will continue to drive up prices in the Las Vegas housing market. We don't think the Las Vegas housing market is set up for a bust because it isn't overheating. The home values have gone up 1.8% over the past year. That's a healthy growth rate, whereas double-digit price increases are unhealthy. This rate is skewed by the number of new luxury homes coming onto the market and the constant churn at the high end of the market.

Las Vegas Is Landlord Friendly

Unlike many other Western states, the Las Vegas real estate market is landlord-friendly. It isn't difficult to evict non-paying tenants from Las Vegas investment properties. In general, they have five days from the date rent is due to “cure” the problem or eviction can begin. The same time frame is used to correct issues like lease violations, after which the person can be evicted. After those five days, the case can go to court, and these are landlord-friendly. Rulings typically arrive the same day, after which point the tenant has one day to leave the premises.

Landlords don't have to pay interest on deposits. There are no limits on late fees, though the late fees due must be spelled out in the rental agreement. There is no payment grace period set by state law. All of this adds up to the Las Vegas real estate market being a paradise for landlords.

Update: On July 1st, 2019, a new tenant protection legislation named SB 151 officially went into effect. It provides tenants with more time to deal with the consequences of eviction after they have had an eviction notice posted on their homes. They will now have seven judicial days to pay their rent or quit. The previous time frame was five calendar days.

For landlords, this new housing legislation also enables them to utilize an attorney or agent to prosecute the eviction action on their behalf. They will now need to go find a permitted eviction process server to carry out these tasks. Those who oppose SB 151 claim that giving tenants more time to go through the eviction process, will make it more difficult for owners to get their properties back on the rental market.

Las Vegas Job Market Attracts People

The Las Vegas job rate has ranged from half a point to a full point above the national unemployment rate. However, that's better than the unemployment rate in Arizona, Salinas, or the San Fernando Valley. And it is places like that sending de facto refugees to Las Vegas. The diverse economy of Las Vegas includes low-skill but good-paying jobs in entertainment, hospitality, and services. It draws thousands of new residents each year. This growth, coupled with its unusual economic basis, has made Las Vegas one of the wealthiest cities in the country.

Since the 1990s, Las Vegas has had one of the fastest-growing employment bases in the country, benefiting from a large labor pool and a favorable business climate. These conditions enabled city promoters to entice businesses of all kinds to choose Las Vegas over California. Every job-killing regulation in California drives businesses to Oregon and Nevada, too, taking jobs with them. This explains why future job growth for the next ten years is expected to be nearly 40%, well over the 33% expected for the nation as a whole. A growing supply of jobs will propel the demand for the Las Vegas housing market.

Las Vegas Rent Prices Are On the Rise

During the Great Recession, Las Vegas went from a fifth of its residents renting to nearly two-fifths. As the job market and personal credit improved, the area is back to having around 19% of residents choosing to rent. However, rents are on the rise. While homes are being built, many people are unable to afford them. This is because the developers who survived the Great Recession are maximizing their profits by building luxury homes, not the affordable homes that many want.

Due to an improving local economy and ongoing population growth, the demand for apartments remains strong in Southern Nevada. For those who can afford Las Vegas investment properties, this guarantees a large rental population that isn't going to be able to afford the new upscale properties that are coming onto the market.

As of February 26, 2023, the average rent for a 1-bedroom apartment in Las Vegas, NV is currently $1,299. This is a 0% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Las Vegas increased by 3% to $1,125. The average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment increased by 1% to $1,545.

  • Two-bedroom apartment rents average $1,545 (a 3% decrease from last year).
  • Three-bedroom apartment rents average $1,950 (a 4% decrease from last year).
  • Four-bedroom apartment rents average $2,447 (a 5% increase from last year).

The Las Vegas real estate market is a great place to invest in real estate in 2022 based on these trends. There was a short-term decline in the rents but they are rising back. The unemployment rate is also decreasing so it is a great time to snatch up hot real estate deals by selecting the best neighborhoods.

Another report, issued by the Nevada State Apartment Association (NVSAA) shows that Southern Nevada’s apartment market is starting to stabilize, with rents projected to rise more slowly this year than previously projected. The report, produced by the NVSAA based on data provided by CoStar, predicts that apartment rents in Southern Nevada will increase by more than 20 percent from the end of the first quarter of 2022 to the end of the same quarter one year later. The average monthly rent in the first quarter was $1,451, up from $1,198 a year earlier.

Meanwhile, local apartment vacancy rates remain stable, with the average vacancy rate during the first quarter of 2022 at 5.4%. That’s up 0.3% from the same time in 2021. Local apartment construction is also on the rise, with the industry projected to catch up with demand by the end of 2022. The report showed more than 7,000 new local apartment units under construction through the first quarter, compared to about 3,800 units during the same time last year.

The average size for a Las Vegas apartment is 893 square feet with studio apartments being the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage. You can, of course, charge much more for a three or four bedrooms single-family home than an apartment.

The most affordable neighborhoods in Las Vegas are Beverly Green, where the average rent goes for $1,061/month, Crestwood, where renters pay $1,061/mo on average, and Francisco Park, where the average rent goes for $1,061/mo. Other good neighborhoods for affordable rentals include Hillside Heights ($1,061), Huntridge Park ($1,061), and John S. Park ($1,061), where the asking prices are below the average Las Vegas rent of $1,471/mo.

The most expensive neighborhoods by Average Rent are:

Las Vegas Neighborhood Average Rent
Mountain Trails $2,591
Sun City $2,591
The Hills $2,591
Red Rock $2,438
Amber Hills $2,335
The Canyons $2,125
The Crossing $2,125
Paradiso $2,036
Summerlin Village $2,036
The Paseos $2,036

California's Loss Is Nevada's Gain

A $475,000 median price may be steep if you're coming from the heartland where a mid-market home costs $150,000 to $200,000. However, tax refugees from California flooding into Nevada find that same house to be an outright bargain compared to the $781,050 price for a comparable property in Los Angeles.

Southern Nevada is one of the cheaper metropolitan areas in the United States, and it is a fraction of the cost of living in California on nearly every front. This explains why you see so many California license plates in Vegas and why it costs $120 to rent a moving truck to go from Vegas to San Francisco but $2000 to come to Las Vegas.

As per the data by Lasvegasrealestate.org, the luxury home market has expanded as 30% of buyers are moving from California to take advantage of Las Vegas' low cost of living. Even the most expensive custom homes from builders such as Blue Heron are found to be a bargain for out-of-state buyers and investors.

Possibly our second-largest market is retiree buyers in 55+ Communities who enjoy the weather, health care, and activities that only Las Vegas can combine in one city at a value not matched in any major city anywhere in the USA.

Nevada Is the Ultimate, Low Tax Locale

While those who own Las Vegas investment properties will need to pay their mortgage if they don't pay cash for the property and ongoing expenses like maintenance and insurance, Nevada offers very low taxes. There is no state income tax.

Nevada's property tax rates are among the lowest in the U.S. The state's average effective property tax rate is just 0.69%, which is well below the national average of 1.08%. Homeowners in Nevada are protected from steep increases in property tax bills by Nevada's property tax abatement law, which limits annual increases in property tax bills to a maximum of 3% for homeowners.

Thus, even if home values increase by 10%, property taxes will increase by no more than 3%. The taxable value of a property is calculated as the cash value of the land (the amount the land alone would sell for on the market), and the replacement cost of all buildings minus depreciation of 1.5% per year since construction.

The assessed value is equal to 35% of that taxable value. Thus, if your County Assessor determines your home's taxable value is $100,000, your assessed value will be $35,000. Tax rates apply to that amount.

There are numerous tax districts within every Nevada county. Hence, when comparing between counties, it is useful to look at average effective rates. Clark County contains almost 75% of the state's residents and includes Las Vegas. The average effective property tax in the county is 0.70%, slightly higher than the statewide average, but still significantly lower than the national average.

If you're planning to buy in Nevada, the most common type of home loan is a 30-year fixed-rate mortgage. This option gives you plenty of time to pay back the loan and your interest rate remains the same for the duration of the loan's life unless you refinance. You can also consider a 15-year fixed-rate mortgage.

It allows you to pay off your loan quicker and comes with a lower interest rate, but your monthly payments will be higher. As we write this, the average Nevada rate for a fixed 30-year mortgage is 3.46%, and for a fixed 15-year mortgage it is 2.83%.

Nevada Real Estate Investment Markets

Las Vegas is a shining beacon in the desert for those fleeing California or simply hoping to make it big. Many others simply come to earn a living serving the many tourists who visit here each year or work at the firms relocating to this tax haven. All of this gives the Las Vegas real estate market a bright future.

According to PwC's annual real estate report, the Las Vegas housing market will enjoy a population growth rate that is well above the national growth rate. This is a continuing trend as data from the US Census Bureau shows a net migration of 6.46% from 2012-2016.

This earned the Las Vegas real estate market a spot among the best places that people were moving to in 2018. The city will hold this title well into 2020 according to the forecast. Good cash flow from Las Vegas investment property 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 Las Vegas in a growing neighborhood would be key to your success. If you invest wisely in Las Vegas real estate, you could secure your future. The best investment is now looking for a rental property that will generate good cash flow.

Your best tenants would be retirees who intend to relocate to Las Vegas and want to purchase property to rent out. The running costs for owning and managing a Las Vegas rental property should not be high. A cheaper neighborhood in Las Vegas might not be the best place to live in.

A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplex and triplex in Class A neighborhoods.

The inventory is low, but opportunities are there. There are 50 neighborhoods in Las Vegas. The Paseos has a median listing price of $666.9K, making it the most expensive neighborhood (Realtor.com). Sunrise is the most affordable neighborhood, with a median listing price of $152K.

Some of the most popular neighborhoods in Las Vegas are Paradise, Enterprise, and Spring Valley. Here you'll find the maximum no. of listings. In Spring Valley, Las Vegas, NV, the home prices range from $44.9K – $18.5M while rental properties are within a range of $795 – $11K.

Even as Las Vegas home prices have reached new heights, the market remains attractive to residential real estate investors. As they continue to compete for potential investment properties at the lower end of the market, the challenges for first-time homebuyers will remain. Millennial homebuyers can't outbid real estate investors and hence end up renting.

As with any real estate purchase, act wisely. Evaluate the specifics of the Las Vegas housing market at the time you intend to purchase.

There are many other markets near Vegas, that you can choose for real estate investing. As a result of an influx of companies and jobs in Northern Nevada, strong housing demand continues to put pressure on the available supply. The Reno real estate market is ideal for investors for several reasons. Supply is limited, and demand is growing.

Rental rates are driven by several competing markets that aren't going to slow down any time soon. Forget owning a couple of condos in Las Vegas and invest in a more affordable, stable real estate market like Reno. Good cash flow from Reno 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.

Nevada Out of State Investment Opportunities  

On the east of Nevada lies the state of Utah, where you can consider investing in Salt Lake City. The Salt Lake City real estate market was ranked one of Millennials' toughest real estate markets due to limited supply relative to demand. Salt Lake is a “slightly hot” real estate market at the moment.

The economy is strong and the city achieves the lowest unemployment rate at 2.1%. The median days on market is 30.5 days, with inventory moving 6 percent faster than last year and 30.5 days faster than the U.S. overall. Home prices in Salt Lake City are expected to rise by record levels in 2020. A strong job market and a robust economy have contributed to the rising housing costs over the past seven years.

Ogden is another good and affordable real estate market in the neighboring state of Utah. The Ogden housing market is appreciating because people move here for work as often as they do live. For example, there are many good-paying jobs in the IT, life sciences, aerospace, and outdoor products manufacturing industries. There are civil service jobs with the state tax office and the local hospital. And then there's the college. This is on top of Utah's employment growth rate of roughly 3 percent a year.

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.

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 Las Vegas.

Not just limited to Las Vegas or Nevada 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 Las Vegas turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Latest Market Data, Trends, and Statistics
https://www.lasvegasrealtor.com
http://myresearcher.com/glvar-section-new
https://www.zillow.com/las-vegas-nv/home-values
https://www.lasvegasrealestate.org
https://www.littlebighomes.com/real-estate-las-vegas.html
https://www.neighborhoodscout.com/nv/las-vegas/real-estate#description
https://www.realtor.com/realestateandhomes-search/Las-Vegas_NV/overview
https://summerlincommunities.com/las-vegas-real-estate-market-update-august-2020/

LAS VEGAS' ECONOMIC & JOB GROWTH INDICATORS
https://en.wikipedia.org/wiki/Las_Vegas
https://downtown.vegas/visitors-guide/fun-facts

Low taxes
https://smartasset.com/taxes/nevada-property-tax-calculator
Geographical constraints
https://www.reviewjournal.com/news/politics-and-government/clark-county/clark-county-unveils-land-proposal-draws-ire-from-groups

Price growth
https://www.mashvisor.com/blog/las-vegas-housing-market-2019
https://knpr.org/knpr/2018-09/las-vegas-housing-booming-does-mean-another-bust-horizon
https://thenevadaindependent.com/article/las-vegas-appears-to-be-entering-a-steady-housing-market
https://www.forbes.com/sites/forbesrealestatecouncil/2018/07/17/why-las-vegas-luxury-real-estate-is-the-next-big-market-boom/#7b20b1c41543

Landlord friendly
https://www.costellomgmt.com/landlord-tenant-laws-nevada
http://lasvegasgleaner.com/the-rent-is-too-damned-highhttps://www.avail.co/education/laws/nevada-landlord-tenant-law

Loss of California
https://www.ktnv.com/news/nevada-sees-population-boost-as-people-leave-california-in-droves

California refugees
https://finance.yahoo.com/news/hottest-housing-market-2018-163701109.html
https://www.ktnv.com/news/nevada-sees-population-boost-as-people-leave-california-in-droves

Job Market
https://patch.com/california/encino/map-unemployment-rate-drops-in-state-in-may
https://www.sacbee.com/latest-news/article213798654.html

Foreclosure rates
https://www.reviewjournal.com/business/housing/las-vegas-foreclosure-rate-dropping-still-among-highest
https://www.realtytrac.com/statsandtrends/foreclosuretrends/nv/clark-county/las-vegas

Myrtle Beach Housing Market: Prices, Trends, Forecast 2023

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Myrtle Beach Housing Market Trends for 2023

Myrtle Beach, South Carolina, is a popular destination for buyers, sellers, real estate agents & brokers, and investors interested in the housing market. Myrtle Beach, SC is also a popular tourist destination, known for its pristine beaches, warm weather, and ample recreational activities. The city has a diverse real estate market, with a range of properties available, including beachfront condos, townhouses, and single-family homes. In this blog post, we will take a closer look at the latest housing market trends in Myrtle Beach for 2023 and provide insights on what to expect in the coming months.

Rising Prices in the Myrtle Beach Housing Market

One of the key trends in the Myrtle Beach housing market in 2023 is the surge in prices. According to Redfin, the median sale price of homes in Myrtle Beach has increased by 20% compared to the previous year, with a median sale price of $270K. This trend is likely to continue in the coming months, making it a great time for sellers to put their homes on the market.

Not a Very Competitive Market

Despite the surge in prices, the Myrtle Beach housing market is not very competitive. Homes are selling in about 87 days on average, compared to 61 days last year, and receiving only one offer on average. Multiple offers are rare, and the average home sells for about 3% below the list price. However, hot homes that are in high demand sell for around the list price and go pending in about 50 days. The average sale price per square foot in Myrtle Beach is $223, which is up 5.9% since last year. This increase in sale price per square foot can be attributed to the overall surge in prices and the demand for homes in the area.

Fewer Homes Sold in Myrtle Beach

In January 2023, there were 231 homes sold in Myrtle Beach, down from 355 homes sold last year. While this decrease in the number of homes sold may seem alarming, it is important to note that the overall trend of rising prices in the housing market is still present.

Buyers and Relocation Trends

When it comes to migration and relocation trends, 0.70% of homebuyers across the nation searched to move into Myrtle Beach from outside metros. Washington homebuyers searched to move into Myrtle Beach more than any other metro, followed by New York and Boston. 63% of Myrtle Beach homebuyers searched to stay within the Myrtle Beach metropolitan area. Asheville was the most popular destination among Myrtle Beach homebuyers, followed by Hilton Head Island and Palm Bay.

Median Listing Home Price

The following housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. Myrtle Beach, SC is currently experiencing strong demand for housing, which is driving up prices. However, the sale-to-list price ratio indicates that buyers still have some room for negotiation. The high number of listings available could provide buyers with more options, but the market's median days-on-market trend suggests that homes may take longer to sell.

Overall, Myrtle Beach, SC's housing market appears to be in a state of transition, with both buyers and sellers having some influence. The median listing home price in Myrtle Beach, SC was $327.1K in January 2023, showing a 21.2% year-over-year increase. This upward trend indicates a strong demand for housing in the area, which is driven by the city's popularity as a vacation destination, as well as an increasing number of people relocating to Myrtle Beach for retirement or work.

Sale-to-List Price Ratio

Homes in Myrtle Beach, SC sold for 3.51% below the asking price on average in January 2023, with a sale-to-list price ratio of 96.49%. This ratio indicates that buyers have some negotiation power in the market and that sellers may need to be more flexible with their prices to close a deal. On average, homes in Myrtle Beach, SC sell after 83 days on the market. This trend for median days on market has gone up slightly since last year, indicating a possible shift towards a more balanced market between buyers and sellers.

By keeping these trends in mind, buyers, sellers, real estate agents, and brokers can make informed decisions in the Myrtle Beach housing market in 2023.

Here are some key takeaways for each group:

For Buyers:

  • Expect to pay a premium for homes in Myrtle Beach due to the surge in prices.
  • Be patient as homes are not selling as quickly as they did last year, and multiple offers are rare.
  • If you are coming from outside the area, be prepared for increased heat and storm risks due to climate change.
  • Consider areas outside of Myrtle Beach, such as Asheville or Hilton Head Island, as popular relocation destinations among Myrtle Beach homebuyers.

For Sellers:

  • Expect to receive offers close to the list price, with hot homes selling for around the list price.
  • Be prepared for your home to stay on the market for a longer period of time than last year.
  • Work with a real estate agent who can help you price your home accurately in this market.
  • For Real Estate Agents and Brokers:
  • Advise your clients to be patient and not to expect multiple offers in this market.
  • Price homes accurately to reflect the current market conditions.
  • Keep an eye on the environmental risks that might impact the area and be prepared to advise your clients accordingly.

For Investors:

  • Myrtle Beach is a popular destination for homebuyers, but the surge in prices might make it difficult to find good investment opportunities.
  • Consider areas outside of Myrtle Beach that are popular relocation destinations among Myrtle Beach homebuyers, such as Asheville or Hilton Head Island.
  • Keep an eye on the environmental risks that might impact the area and be prepared to adapt your investment strategy accordingly.

The Myrtle Beach housing market in 2023 is experiencing a surge in prices, with a not-very-competitive market and a slight decrease in the number of homes sold. While this might make it challenging for buyers and investors, sellers and real estate agents can still make informed decisions in this market by keeping up with the latest trends and working with knowledgeable professionals. Additionally, buyers and sellers should consider the environmental risks that might impact the area in the coming years.

Myrtle Beach Housing Market Forecast

The Myrtle Beach housing market has seen a significant increase in home values over the past year. As of January 31, 2023, the average home value in Myrtle Beach is $298,043, which represents a 14.8% increase over the previous year. This increase in home values is likely due to a combination of factors, including a strong economy and high demand for housing.

According to Zillow's market overview, the median sale-to-list ratio in Myrtle Beach as of December 31, 2022, was 0.973, indicating that homes are selling very close to their listing prices. Additionally, 9.9% of sales in Myrtle Beach in December 2022 were over the list price, while a huge 75.6% were under the list price.

The median days to pending, as of January 31, 2023, was 34, which means that homes are selling relatively quickly in the current market. Zillow's data also shows that the Myrtle Beach housing market has been on an upward trend for several years, with home values steadily increasing since 2015.

Based on the data provided by Zillow, the Myrtle Beach housing market is expected to continue its upward trend over the next twelve months. The combination of a strong economy, high demand, and a limited housing supply has contributed to the surge in home values, and these factors are expected to persist in the near future.

Interest rates are expected to remain steady or even increase, which could put pressure on homebuyers to act quickly before rates rise further. This could result in a further increase in demand for housing, which could drive up prices even more. The median days to pending is relatively low, indicating that homes are selling quickly in the current market.

This trend is expected to continue as buyers compete for limited inventory, especially in desirable neighborhoods or locations. However, it's important to note that the current market is not very competitive, with homes receiving only one offer on average. This could change if demand continues to increase, which could result in more multiple-offer situations and even bidding wars.

Based on the data, it's reasonable to expect that the Myrtle Beach housing market will continue to be a seller's market in the next twelve months, with high demand and limited inventory driving up home values. Buyers should be prepared to act quickly and be flexible with their expectations, while sellers are likely to continue to see strong demand and may be able to sell their homes quickly and at a premium price.

Real estate agents and brokers should be prepared to navigate a competitive market and help their clients make informed decisions based on market conditions. Investors should also keep an eye on the market trends, as the Myrtle Beach housing market could be a lucrative opportunity for those looking to invest in rental properties or flip homes.

How is Real Estate Investing in Myrtle Beach?

Investing in real estate can be a smart decision, especially when you consider the long-term potential for appreciation and the potential for passive income through rental properties. Here are some top reasons to consider investing in the Myrtle Beach real estate market:

  1. Strong Economy: Myrtle Beach is a popular tourist destination, which means there is a strong economy supported by the tourism industry. This translates into a steady stream of visitors and a demand for rental properties.
  2. Rental Population: Myrtle Beach has a significant population of renters, with nearly 50% of the population renting rather than owning their homes. This creates a strong demand for rental properties and potential for steady rental income.
  3. Tax Environment: South Carolina is known for its favorable tax environment, with no estate tax, low property taxes, and no state inheritance tax. This can make it an attractive place to invest in real estate and potentially generate higher returns.
  4. Affordable Market: Compared to other popular vacation destinations, the Myrtle Beach real estate market is relatively affordable, which means investors can potentially acquire properties at lower prices and generate higher returns on their investment.
  5. Potential for Appreciation: Myrtle Beach has been experiencing steady growth in the real estate market over the past several years, with home values increasing steadily since 2015. This trend is likely to continue as the area continues to attract new residents and tourists.

However, there are also some potential drawbacks to investing in the Myrtle Beach real estate market:

  1. Seasonal Market: While Myrtle Beach is a popular tourist destination, the real estate market can be seasonal. Demand for rental properties and home sales may slow down during the off-season, which could impact cash flow for investors.
  2. Property Management: If you plan to invest in rental properties, you will need to manage them or hire a property manager to do so. This can be time-consuming and costly, and there is always a risk of tenant turnover and other issues that could impact cash flow.
  3. Competition: While the Myrtle Beach real estate market may be affordable compared to other vacation destinations, it is still a competitive market. Investors may need to act quickly to acquire properties and may face stiff competition from other buyers and investors.
  4. Hurricane Risk: As a coastal city, Myrtle Beach is at risk for hurricanes and other natural disasters. This risk could impact property values and create additional costs for investors in terms of insurance and maintenance.

In conclusion, the Myrtle Beach real estate market offers a number of potential benefits for investors, including a strong economy, rental population, favorable tax environment, affordability, and potential for appreciation. However, investors should also be aware of the potential drawbacks, including a seasonal market, property management challenges, competition, and hurricane risk. By carefully weighing these factors, investors can make an informed decision about whether the Myrtle Beach real estate market is right for them.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

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

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

Sources:

  • https://www.zillow.com/home-values/46666/myrtle-beach-sc/
  • https://www.redfin.com/city/12572/SC/Myrtle-Beach/housing-market
  • https://www.realtor.com/realestateandhomes-search/Myrtle-Beach_SC/overview

El Paso Housing Market: Prices, Trends, Forecast 2023

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El Paso, located on the westernmost tip of Texas, is the sixth-largest city in the state. The El Paso housing market has been witnessing strong growth over the past year, making it a prime destination for both buyers and sellers. In this report, we will analyze the latest data on the El Paso housing market in 2023, including trends, prices, and forecasts.

El Paso Housing Market Trends for 2023

El Paso is a city located in Texas and consists of 177 neighborhoods. The El Paso housing market has been showing a steady upward trend in the median listing home price in recent years. In this report, we will analyze the current trends in the El Paso housing market, including the best neighborhoods, home values, real estate highlights, and top schools.

Home Values in El Paso:

These housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. The median listing home price in El Paso, TX was $268K in January 2023, which has been trending up 11.6% year-over-year. The median listing home price per square foot was $146. The sale-to-list price ratio indicates that El Paso is currently a balanced market, which means that the supply and demand of homes are about the same.

Market Type:

El Paso, TX was a balanced market in January 2023, which means that the supply and demand of homes are about the same. A balanced market typically has a total sales-to-total listings ratio between 0.12 and 0.2. Markets with a ratio above 0.2 tend to favor sellers, while markets with a ratio below 0.12 tend to favor buyers

Median Days on Market:

On average, homes in El Paso, TX sell after 62 days on the market. The trend for median days on the market in El Paso has gone up since last month, but slightly down since last year. Some of the best neighborhoods in or around El Paso, Texas are Bear Ridge, Las Teirras, and Tres Suenos. These popular neighborhoods are highly recommended for buying or renting a home.

El Paso, TX is home to 252 public schools rated good and higher by GreatSchools, along with 85 private and charter schools. Overall, the El Paso housing market is experiencing an upward trend in home prices, and the city has several excellent neighborhoods to consider. With affordable options for duplexes, condos, and townhomes, there are plenty of opportunities for potential buyers or renters. Along with top-rated schools, numerous amenities, and a balanced market, El Paso is an attractive location for those seeking a home in Texas.

Housing Market Competitiveness

According to Redfin, El Paso is a competitive housing market where homes receive multiple offers and sell quickly. This report presents an overview of the El Paso housing market trends in 2023, including median sale prices, average days on the market, and migration patterns. Additionally, it highlights natural hazards and environmental risks that could impact homes in El Paso. In January 2023, the median sale price of a home in El Paso was $215K, up 0.9% since last year.

On average, homes sell after 22 days on the market compared to 21 days last year. In January 2023, 366 homes were sold, down from 535 last year. The average sale price per square foot in El Paso is $137, up 11.4% since last year. The Redfin Compete Score rates El Paso as a very competitive market where many homes receive multiple offers, some with waived contingencies. The average homes sell for about 1% below the list price, and hot homes can sell for about 2% above the list price.

Migration and Relocation Trends:

Across the nation, 0.21% of homebuyers searched to move into El Paso from outside metros. Los Angeles homebuyers searched to move into El Paso more than any other metro followed by San Diego and San Francisco. 61% of El Paso homebuyers searched to stay within the El Paso metropolitan area. Albuquerque was the most popular destination among El Paso homebuyers followed by Dallas and Tucson.

In conclusion, the El Paso housing market in 2023 is very competitive, with homes receiving multiple offers and selling quickly. The median sale price of a home in El Paso is $215K, and homes sell on average after 22 days on the market. Natural hazards and environmental risks such as drought, fire, heat, and storms could impact homes in El Paso. Despite this, many homebuyers continue to search for homes in the area, with Los Angeles, San Diego, and San Francisco homebuyers leading the pack

El Paso Housing Market Forecast 2023

According to Zillow, the average home value in El Paso, Texas, as of January 31, 2023, is $198,194, which represents an increase of 12.8% over the past year. This trend is consistent with the broader national trend of rising home prices. The Zillow Home Values Index (ZHVI) captures changes in property-level Zestimates and reflects home values across various geographies and housing types.

Market Forecast and Key Metrics

Based on Zillow's market forecast, El Paso's housing market is expected to remain stable over the next year. As of December 31, 2022, the median sale-to-list ratio was 1.000, which indicates that homes are selling for their asking price. Additionally, 38.0% of sales were above the list price, while 41.3% were below the list price. The median days to pending was 20 as of January 31, 2023, indicating that homes are selling quickly in the current market.

The El Paso housing market has seen an increase in home values over the past year, with the average home value being $198,194 as of January 31, 2023. The market is expected to remain stable over the next year, with homes selling for their asking price, and median days to pending being 20.

According to a national housing forecast, the El Paso housing market is expected to be among the fastest growing in the US in 2023. Realtor.com predicts that home sales in El Paso will grow by 8.9% and prices by 5.4% in 2023, compared to 2022. However, local experts caution that these projections may be overblown. Economist Tom Fullerton at the University of Texas at El Paso expects home sales to grow by 3.2% in 2023, based on data from the Greater El Paso Association of Realtors.

The median sales price for residential homes in El Paso was $247,000 in November, which is 17.6% higher than the previous year. Despite being considered one of the poorest big cities in the US, El Paso’s relatively low home prices and slow but steady growth have attracted investment from other markets, particularly from California.

With the shift to remote work, some workers have moved to areas like El Paso where the cost of living is lower. However, the challenge for the housing market now is for incomes to keep pace with inflation and rising housing costs. While the real estate market has slowed in recent months, the building of massive warehouses in El Paso by companies like Amazon and TJX Companies is helping to boost job growth.

In conclusion, based on the current high-interest rate environment, it is possible that El Paso's housing market may experience a slight cooling off in price appreciation. However, with a stable market forecast and homes selling quickly, the El Paso housing market remains a favorable option for buyers and sellers. It is important for individuals to use relevant market data to make informed decisions in this market. Using relevant market data is crucial when making informed decisions in the housing market, and Zillow offers resources to assist buyers and sellers.

Should You Invest in the El Paso Real Estate Market?

Investing in the El Paso real estate market can be a wise decision due to its stable market forecast, increasing home values, and quick median days to pending. However, the current high-interest rate environment may lead to higher borrowing costs for investors. Additionally, the market may become more competitive, leading to potential bidding wars and higher prices. It is important to consider these factors and weigh them against the potential benefits before making a decision to invest in El Paso real estate.

Top reasons to invest in El Paso real estate market:

  • Rising home values: The average home value in El Paso has increased by 12.8% over the past year.
  • Stable market forecast: Zillow's market forecast indicates that the El Paso housing market is expected to remain stable over the next year.
  • Homes selling at asking price: The median sale-to-list ratio is 1.000, indicating that homes are selling for their asking price.
  • Quick sales: The median days to pending is 20, indicating that homes are selling quickly in the current market.
  • Growing population: El Paso has a growing population, which can drive demand for housing.
  • El Paso's economy: It is diverse, with major sectors including healthcare, education, and the military. The city also benefits from its location on the US-Mexico border, with strong trade and transportation industries. The military presence in El Paso is significant, with Fort Bliss being one of the largest military complexes in the world. This provides stability and consistent demand for housing in the area. El Paso has a relatively low cost of living compared to other major cities in Texas, making it an attractive location for residents and businesses alike.
  • The rental market in El Paso is strong, with a relatively high percentage of renters compared to homeowners. This provides opportunities for investors to generate rental income.

Potential drawbacks:

  • High-interest rates: The current high-interest rate environment can make it more expensive to borrow money for real estate investment.
  • Competition: The growing popularity of El Paso's housing market can lead to increased competition for desirable properties.
  • Economic factors: Changes in the local or national economy can affect the housing market, and investors should be aware of these risks. 
  • Natural disasters: El Paso is prone to natural disasters such as floods and earthquakes, which can damage or destroy properties.
  • Neighborhood factors: Neighborhood-specific factors such as crime rates and school quality can impact the value of properties in the area.
  • The median household income in El Paso is lower than the national average, which may impact the affordability of housing for some residents and limit the potential for rent increases.

Buying investment property is different than buying an owner-occupied home. The investment properties are designed to make money as rentals, which means you must look at it solely as an income-producing entity just like any other business. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.

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

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

Sources:

  • https://www.zillow.com/home-values/17933/el-paso-tx/
  • https://www.redfin.com/city/6171/TX/El-Paso/housing-market
  • https://www.realtor.com/realestateandhomes-search/El-Paso_TX/overview
  • https://www.elpasoinc.com/news/local_news/el-paso-housing-market-positioned-for-growth/article_663a993c-8a06-11ed-9abb-9fef540b4451.html

Madison Housing Market: Prices, Trends, Forecast 2023

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Madison Housing Market Trends in 2023: Overview, Prices, and Conditions

Madison's housing market is experiencing growth, with homes selling for an average of 16.3% more than last year. Despite increased demand, the average home sells in around 53 days, and the sale-to-list price ratio indicates strong demand. Additionally, while the median days on the market have increased slightly, it remains within a reasonable timeframe for sellers. Discover more about the Madison housing market trends in 2023 in this report, based on the data released by credible real estate firms.

According to the report by Redfin, the Madison housing market is somewhat competitive, with homes receiving an average of three offers and selling in around 53 days. The average sale price of a home in Madison was $375K last month, up 16.3% since last year. The average sale price per square foot in Madison is $203, up 3.8% since last year.

In January 2023, Madison home prices were up 16.3% compared to last year, selling for a median price of $375K. On average, homes in Madison sell after 63 days on the market compared to 52 days last year. There were 137 homes sold in January this year, down from 178 last year. The report indicates that Madison is somewhat competitive, with homes selling in 53 days.

The average homes sell for about 1% below the list price and go pending in around 53 days. Hot homes can sell for about 1% above the list price and go pending in around 31 days. The report also provides information on Madison migration and relocation trends. Across the nation, 0.19% of homebuyers searched to move into Madison from outside metros. Chicago homebuyers searched to move into Madison more than any other metro followed by Wausau and San Francisco.

Furthermore, 65% of Madison homebuyers searched to stay within the Madison metropolitan area, indicating that many individuals are either upgrading or downsizing within the city. The most popular destinations for those leaving Madison were Minneapolis, Milwaukee, and Phoenix. These cities offer a range of opportunities, making them attractive options for those looking to relocate.

While the Madison housing market is currently favorable for sellers, there are potential drawbacks to consider for investors. One of the main challenges is the affordability of homes. The median sale price in Madison is $375K, which may be out of reach for some investors. Additionally, while the market is currently strong, the pace of growth may slow down in the future, leading to less demand and fewer sales.

Another challenge is the supply of available homes for sale. With more buyers than available homes, competition is high, making it more difficult for investors to find and purchase desirable properties. This can lead to bidding wars, increasing the price of homes, and potentially reducing profit margins for investors.

Median Listing and Selling Price:

Madison is the capital of Wisconsin, and it is home to the University of Wisconsin-Madison. The Madison housing market has been experiencing growth over the past year, and it is currently a seller's market. This report will analyze the latest data on the Madison housing market in January 2023.

According to Realtor.com, in January 2023, the median listing home price in Madison, WI was $379.9K, which is a 3.6% increase from the previous year. The median home sold price was $359.8K, which is slightly lower than the median listing price. The median listing home price per square foot was $218.

Market Condition:

Madison, WI, is currently a seller's market, which means there are more buyers than available homes for sale. This market condition has been driving up the median listing price in the area. The sale-to-list price ratio in Madison, WI, is 100%, indicating that homes in Madison sold for almost the asking price. This ratio is favorable for sellers and indicates a strong demand for homes in the area.

Median Days on Market:

In January 2023, the median days on the market in Madison, WI, was 75 days, which is slightly up from last year. This trend suggests that homes are staying on the market slightly longer than in previous years, but still within a reasonable timeframe.

Overall, the Madison housing market is experiencing growth and favorable conditions for sellers. The median listing price and sale-to-list price ratio indicate that demand for homes in Madison is strong. While the median days on the market have increased slightly, it is still within a reasonable timeframe for sellers. The Madison housing market is experiencing growth and favorable conditions for sellers, making it an attractive option for investors looking to enter the market.

The market is somewhat competitive, with homes selling in around 53 days and multiple offers being made for some properties. However, investors should also be aware of potential challenges, such as high home prices and limited inventory. By carefully evaluating market trends and considering potential drawbacks, investors can make informed decisions about whether the Madison housing market is right for them.

Should You Invest in Madison Real Estate Market?

Madison, WI is currently experiencing a seller's market, which means there is a high demand for properties in the area. However, with the expected rise in interest rates and inflation, it's important to consider whether investing in the Madison, WI real estate market is a wise decision. Here are the top five reasons to invest and potential drawbacks to consider:

Reasons to Invest:

  1. Strong demand: The Madison, WI housing market is experiencing high demand due to its attractive location, growing economy, and excellent quality of life.
  2. Rental market potential: Madison, WI is home to the University of Wisconsin-Madison, which means there is a constant demand for rental properties. Investing in rental properties can provide a steady stream of passive income.
  3. Job growth: Madison, WI has a strong job market with several large employers, including the University of Wisconsin-Madison, American Family Insurance, and Epic Systems. This job growth can lead to an increase in demand for housing.
  4. Limited supply: There is a limited supply of homes in Madison, which can lead to higher prices and increased demand for properties.
  5. Favorable market conditions: The current seller's market in Madison means that it's a good time to invest in real estate as properties are selling quickly and for high prices.

Potential Drawbacks:

  • Higher interest rates: The expected rise in interest rates can lead to an increase in mortgage rates, making it more expensive to invest in real estate.
  • Inflation: Inflation can lead to a decrease in the value of the dollar, which can impact the overall economy and real estate market. I
  • Competition: With a limited supply of homes, competition for properties can be fierce, leading to bidding wars and higher prices.
  • Market fluctuations: The real estate market can be unpredictable, with fluctuations in demand, supply, and prices. Investing in real estate always comes with a degree of risk.
  • Tax factors can be a significant factor for those considering investing in Madison real estate. While Wisconsin's overall tax burden is relatively high compared to other states, it is still considered a relative bargain compared to neighboring states. Additionally, Madison authorities have shown a tendency to keep tax rates low or even lower property taxes in some cases. However, property taxes in Madison can still be considered high compared to other areas, which may be a con for some investors. Ultimately, it depends on an individual's financial goals and priorities when deciding whether to invest in the Madison real estate market.

In conclusion, investing in the Madison, WI real estate market can be a good decision due to its strong demand, rental market potential, job growth, limited supply, and favorable market conditions. However, it's important to consider potential drawbacks such as higher interest rates, inflation, property taxes, competition, and market fluctuations. It's important to do thorough research and consult with a real estate professional before making any investment decisions.

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

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

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

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

Sources:

  • https://www.realtor.com/realestateandhomes-search/Madison_WI/overview
  • https://www.zillow.com/home-values/398849/madison-wi/
  • https://www.redfin.com/city/12257/WI/Madison/housing-market

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