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Archives for September 2023

Frisco Housing Market: Prices, Trends, Forecast 2023

September 27, 2023 by Marco Santarelli

Frisco, a city in Texas, is one of the most popular places to live in the state. With its booming economy, excellent schools, and thriving real estate market, it's no surprise that many people are interested in buying or renting a home in this area. In this blog post, we will explore the Frisco housing market for 2023, including home values, and real estate trends.

Frisco Housing Market – August 2023 Overview

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. Let's explore the housing market trends in Frisco, TX for the month of August 2023.

  • Median Listing Home Price: $738.5K
  • Year-Over-Year Price Trend: 1.3% increase
  • Median Listing Home Price per Square Foot: $248
  • Median Sold Home Price: $649.9K
  • Sale-to-List Price Ratio: 97.8%
  • Median Days on Market: 36 days

In August 2023, the housing market in Frisco, TX is leaning towards being a buyer's market. This implies that there's a greater supply of homes compared to the demand, giving buyers more negotiating power. Homes sold for about 2.2% below the asking price on average, indicating a favorable situation for buyers.

However, the year-over-year increase in the median listing home price suggests a slight upward trend in prices, which is worth noting. The median days on market being 36 days on average also indicates a relatively brisk sales pace.

Neighborhood Insights

Frisco consists of 12 neighborhoods, each offering a distinct real estate landscape. Among them, Starwood stands out as the most expensive neighborhood with a median listing home price of $1.8M. On the other hand, Frisco Lakes is the most affordable neighborhood, with a median listing home price of $529K.

Is it a Good Time to Buy a House in Frisco, TX?

Considering the buyer's market conditions and the homes selling slightly below the asking price, August 2023 appears to be a favorable time for buyers to consider making a home purchase in Frisco, TX. It's important to monitor the market trends and act accordingly to secure a good deal.

Are Home Prices Increasing in Frisco, TX?

While there has been a 1.3% year-over-year increase in the median listing home price, suggesting a mild upward trajectory, the market is still favoring buyers. The overall scenario indicates a stable market with a potential for price growth in the near future.

Frisco Housing Market Forecast 2023-2024

Let's take a closer look at the housing market forecast for Frisco, based on data provided by Zillow through August 31, 2023.

  • Average Frisco Home Value: $669,998
  • Year-Over-Year Change in Home Value: -3.1%
  • Median Time to Pending: 14 days

Zillow's data indicates that the average home value in Frisco is currently $669,998, reflecting a 3.1% decrease over the past year. Homes typically go pending in around 14 days, demonstrating a relatively fast-paced market.

Additional insights from Zillow as of July 31, 2023:

  • Median Sale to List Ratio: 0.998
  • Percent of Sales Over List Price: 39.7%
  • Percent of Sales Under List Price: 43.5%
  • Median Days to Pending: 14

The median sale to list ratio as of July 31, 2023, stands at 0.998, indicating a balance between list prices and sale prices. Additionally, nearly 39.7% of sales are reported to be above the list price, while about 43.5% of sales are below the list price.

Future Outlook and Predictions

While past data provides valuable insights into the housing market, predicting the future is challenging. However, based on the trends observed, we can make some projections for the Frisco housing market:

  • Given the average home value decrease of 3.1% over the past year, it's possible that the market might see a period of stabilization or a gradual recovery in home values in the coming months.
  • The median days to pending being 14 days indicates a fast-paced market. This trend is likely to continue, emphasizing the importance of quick decision-making for buyers.
  • With nearly 39.7% of sales reported to be over the list price, it suggests a competitive market. Buyers should be prepared for potential bidding wars and consider making strong offers.
  • Conversely, about 43.5% of sales under list price may indicate opportunities for negotiation for savvy buyers, especially in a market with a slightly decreased average home value.
Frisco Housing Market Forecast 2023-2024
Source: Zillow

Should You Invest in Frisco Real Estate Market?

Investing in real estate can be a lucrative opportunity for investors looking for a long-term investment strategy. The Frisco real estate market has been growing steadily in recent years, making it an attractive investment option for many. However, like any investment, it's important to weigh the potential risks and rewards before making a decision. Let us discuss five reasons why you should consider investing in the Frisco real estate market.

  • Strong Economy: Frisco is located in the heart of the Dallas-Fort Worth Metroplex, which is one of the fastest-growing regions in the United States. The area has a strong economy with a diverse range of industries, including healthcare, technology, finance, and more. This has resulted in a growing job market and a steady increase in population, which bodes well for the local real estate market.
  • High Demand: Frisco has experienced a high demand for housing in recent years, driven by the growing population and the strong job market. This has resulted in a low supply of homes, creating a competitive market for buyers. As a result, home prices have been steadily increasing, providing investors with the potential for long-term capital gains.
  • Favorable Market Conditions: Frisco's market conditions, with a 2.3% value drop, swift sales, and varied sale outcomes, offer a dynamic landscape that can present both challenges and opportunities for investors.
  • Stable Rental Market: Frisco has a stable rental market, making it an attractive option for investors looking for rental properties. The area has a low vacancy rate and a growing population, resulting in high demand for rental properties. This creates an opportunity for investors to generate passive income through rental properties.
  • Future Growth Potential: Frisco is projected to continue growing in the future. According to the United States Census Bureau, Frisco's population grew by 71.1% between 2010 and 2020, making it one of the fastest-growing cities in the country. This growth rate indicates the potential for continued population growth and demand for housing in the future. This means that there will likely be continued demand for housing in the area, creating a favorable market for real estate investors.
  • Texas' lack of state income tax is another reason why investing in the Frisco real estate market may be attractive to some investors. By not having to pay state income tax, residents of Texas have more disposable income, which they can use to invest in real estate, among other things. This can increase demand for housing in the area, which can drive up property values and make real estate investments more attractive. Additionally, the absence of state income tax can make investing in rental properties more profitable, as landlords can potentially generate more income without having to worry about state taxes on that income. As a result, the lack of state income tax in Texas is another factor that may make investing in the Frisco real estate market more appealing to some investors.

In conclusion, the Frisco real estate market has many attractive qualities for potential investors. With a strong economy, high demand for housing, favorable market conditions, a stable rental market, and future growth potential, Frisco is a promising option for those looking to invest in real estate. However, it's important to do your research and weigh the potential risks and rewards before making any investment decisions.

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. 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/18208/frisco-tx/
  • https://www.redfin.com/city/30844/TX/Frisco/housing-market
  • https://www.realtor.com/realestateandhomes-search/Frisco_TX/overview

Filed Under: Growth Markets, Housing Market, Real Estate Investing

Atlanta Housing Market: Prices, Trends, Forecasts 2023

September 27, 2023 by Marco Santarelli

Atlanta Housing Market

Welcome to the comprehensive overview of the Atlanta housing market, a region brimming with diversity and opportunities. The July 2023 Market Brief, curated by Atlanta REALTORS® and compiled by First Multiple Listing Service (FMLS), unveils insights into sales, prices, and trends for residential properties in Metro Atlanta. As we delve into this synopsis, we'll explore the demand, pricing dynamics, and supply landscape that define the Atlanta housing market.

ALSO READ: Georgia Housing Market Forecast

Atlanta Housing Market Trends

July Highlights

The July 2023 Market Brief, meticulously compiled by FMLS, casts a spotlight on monthly sales and home prices across Metro Atlanta. This synopsis encapsulates a spectrum of 11 counties, providing a comprehensive view of the region's real estate pulse. These counties include Cherokee, Clayton, Cobb, DeKalb, Douglas, Forsyth, Fulton, Gwinnett, Fayette, Paulding, and Rockdale.

Demand

In July, the residential sales recorded a figure of 4,717, marking a 20.1% decrease compared to the previous year. This data reflects the dynamic nature of the market and the interplay of various factors influencing buyer behavior.

Price Dynamics

The Atlanta housing market has experienced nuanced shifts in pricing trends. The median sales price in July stood at $420,500, showcasing a subtle 0.1% increase from the previous year. Meanwhile, the average sales price amounted to $510,500, reflecting a 2.6% uptick compared to the previous year. These fluctuations underscore the ever-changing nature of the real estate landscape in Atlanta.

Supply Landscape

Housing inventory is a crucial factor influencing the market's equilibrium. In July, the Atlanta area's housing inventory totaled 10,169 units, signifying a 20.5% decrease from July 2022. New listings followed suit, totaling 6,842, which represents a 23.0% decrease from July 2022 and a 10.4% decrease from the previous month. The month's supply over a 12-month period expanded to 2.1 months, highlighting evolving supply dynamics.

Are Housing Prices Dropping in Atlanta?

The Atlanta housing market has showcased a range of pricing dynamics. While average and median sales prices have experienced fluctuations, the market remains resilient. These fluctuations can be influenced by a variety of factors, including economic conditions, market demand, and housing inventory levels. It's essential to consider specific market segments and broader economic trends to assess the overall trend in housing prices in Atlanta.

Is It a Good Time to Buy Houses in Atlanta?

With the Atlanta housing market displaying a blend of pricing dynamics and evolving supply, the question of whether it's a good time to buy houses depends on individual circumstances and goals. Factors such as personal financial readiness, long-term investment plans, and current market trends all play a role in this decision. Engaging with real estate professionals and staying informed about market trends can help potential buyers make informed choices aligned with their objectives.

Market Forecast: Atlanta Housing Market

According to the National Association of Realtors, Atlanta is expected to be the top real estate market in 2023. Among the 179 metro areas analyzed by NAR, it was the only one to meet all 10 indicators such as housing affordability, employment conditions, and population growth.  The Atlanta metropolitan area continues to be more affordable than the majority of U.S. regions, with more than 20% of renters able to afford an average home purchase, according to a report.

The job market is healthy, with Apple, Microsoft, and Visa among the major West Coast tech corporations opening offices. Consequently, the region experiences huge migration gains and rapid population growth, leading to a surge in housing demand. According to the Atlanta REALTORS® Association, it is still a seller's market, so sellers who have waited or are prepared to sell can still realize profits over the previous year.

Is Atlanta a Seller's Housing Market?

The following Atlanta 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.

The Atlanta housing market, known for its diverse neighborhoods and dynamic economy, is a topic of keen interest for buyers and sellers alike. Let's delve into the data to understand whether Atlanta is currently a seller's housing market, shedding light on the pricing dynamics, market conditions, and trends that define the city's real estate landscape.

Median Listing Home Price and Trends

The median listing home price in Atlanta, GA stood at $430K in July 2023, representing a year-over-year decrease of -3.6%. This statistic provides insight into the price trajectory of homes in the city, reflecting the market's recent shifts.

Sale-to-List Price Ratio and Market Balance

The sale-to-list price ratio, recorded at 100% for Atlanta, GA in July 2023, indicates that homes were sold at approximately the asking price on average. Additionally, the housing market in Atlanta is characterized as a balanced market for the same period. This equilibrium signifies that the supply and demand of homes are relatively aligned, offering opportunities for both buyers and sellers.

Days on Market and Neighborhood Insights

On average, homes in Atlanta, GA, were sold after 41 days on the market. This metric offers a glimpse into the pace at which properties are being bought and sold in the city. Furthermore, Atlanta boasts 205 neighborhoods, each with its unique character. From upscale Morningside – Lenox Park to affordable Collier Heights, the city's diverse neighborhoods cater to a range of preferences and budgets.

Fulton County and City Perspectives

Zooming in on Fulton County, which encompasses Atlanta, similar trends are observed. The median listing home price in Fulton County, GA was $440K in July 2023, marking a year-over-year decrease of -4.3%. The sale-to-list price ratio of 100% underscores the balanced market dynamics in Fulton County as well. Additionally, within the county's 17 cities, the range of median listing home prices offers a glimpse into the diversity of options, from Milton to Union City.

Based on the data presented, the Atlanta housing market demonstrates characteristics of a balanced market, where buyers and sellers find opportunities aligned with their goals. While pricing trends have witnessed fluctuations, the equilibrium between supply and demand bodes well for both parties. Whether you're considering buying or selling in Atlanta or Fulton County, staying informed about the market dynamics will empower you to make informed decisions and navigate the city's vibrant real estate scene with confidence.

Atlanta Rental Housing Trends

About 50% of the households in Atlanta, GA are renter-occupied. Atlanta rent prices plunged during the most severe period of the coronavirus outbreak when much of the city’s economy was locked down. It is supposed to have ended eight years of steady rent growth in the Atlanta housing market. Average rents were down 2.2% from March through May for the entire metro Atlanta market. The declines were sharpest in areas of Buckhead, Lindbergh, and Emory, Midtown but the suburban markets did not suffer much.

But the latest market reports show a fast pace recovery from the effects of the pandemic. According to Realpage.com's analysis, there's been a record apartment demand in Atlanta. The whole Georgia market claimed the nation’s top spot for apartment demand. Atlanta’s 3rd quarter demand tally of 9,008 units accounted for 87% of the market’s annual absorption in the year-ending September.

The rent prices are up whether you compare them annually or monthly. As of August 2023, the average rent for a 1-bedroom apartment in Atlanta, GA is currently $1,709. This is a 3% decrease as compared to the previous year. Over the past month, the average rent for a studio apartment in Atlanta decreased by -1% to $1,560. The average rent for a 1-bedroom apartment decreased by -2% to $1,709, and the average rent for a 2-bedroom apartment remained flat.

  • Two-bedroom apartments in Atlanta rent for $2,280 a month on average (a 3% increase from last year).
  • Three-bedroom apartment rents average $2,200 (a 3% decrease from last year).
  • Four-bedroom apartment rents average $2,419 (a 7% decrease from last year).

The Zumper Atlanta Metro Area Report analyzed active listings across the metro cities to show the most and least expensive cities and cities with the fastest-growing rents. The Georgia one-bedroom median rent was $1,299 last month. Alpharetta was the most expensive city with one bedroom priced at $1,920 while Rome ranked as the most affordable city with one bedroom priced at $810.

The Fastest Growing Cities in The Atlanta Metro Area (Year-Over-Year) 

  • Rome had the fastest growing rent, up 35% since this time last year.
  • Decatur saw rent climb 15.3%, making it the second fastest growing.
  • Athens was third with rent jumping 13%.

The Fastest Growing Cities in The Atlanta Metro Area (Month-Over-Month)

  • Rome rent experienced the largest monthly growth rate, up 6.6%.
  • Alpharetta saw rent climb 6.1%, making it second.
  • Kennesaw was third with rent jumping 5.3%.
Metro Atlanta Rental Market Trends
Courtesy of Zumper.com

Atlanta Housing Market Forecast 2023-2024

Atlanta has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in rental properties. Population growth has had a positive impact on the housing market in Atlanta. Nearly 285,000 people moved to Georgia in 2019, according to the most recent data from the U.S. Census Bureau.

This migration has made possible the state's consistent ‘best state for business' rankings. Area Development magazine named Georgia No. 1 for business – for seven straight years (2014-20). Nine out of 10 Fortune 500 companies have operations in Georgia – and 18 of these have made Georgia their world headquarters.

Much of this migration is driven by the strong business environment in Atlanta and the relative affordability of the city. Its robust knowledge-based economic ecosystem attracts new talent to the city. The net migration has led to an ever-increasing demand for housing in Atlanta which cannot be met with the current pace of new construction.

The Atlanta housing market has a housing shortage which will continue to contribute to increasing prices. Atlanta home prices on average are less expensive than the national average. Despite being below the national average, Atlanta home prices have more than doubled since 2012, and are projected to continue increasing.

According to a report released by the National Association of Realtors in December, Atlanta will be the nation's leading real estate market in 2023. Atlanta topped the association's list of markets to watch in 2023 based on its performance in 10 key indicators, such as housing affordability, employment conditions, and population growth, relative to the national average.

The Atlanta housing market is a dynamic tapestry of trends and possibilities, and understanding its future trajectory is essential for both buyers and sellers. Let's delve into the Atlanta-Sandy Springs-Roswell area's housing market forecast, unveiling insights that provide a glimpse into what the coming months hold for this vibrant region.

Current Market Snapshot

According to Zillow, as of July 31, 2023, the average home value in the Atlanta-Sandy Springs-Roswell area stands at $374,163. This figure reflects a 0.7% decrease over the past year, signifying shifts in market dynamics that merit exploration.

Homes in this region are known for their swift movement, typically going pending in around 13 days. This rapid pace illustrates the high demand and competitive nature of the Atlanta housing market.

Market Forecast

The 1-year market forecast serves as a valuable compass, guiding potential buyers and sellers. As of July 31, 2023, the forecast presents a promising 7.2% increase, indicating an anticipated rebound and growth in the near future. This projection underscores the resilience and attractiveness of the Atlanta-Sandy Springs-Roswell housing market.

Sales Metrics

An examination of sales metrics provides a deeper understanding of market dynamics. The median sale to list ratio, recorded as 1.000 on June 30, 2023, suggests that homes were sold close to their listing prices, reflecting a competitive market environment.

Of the sales recorded on June 30, 2023, 37.9% were sold over the list price, showcasing the demand-driven nature of the market. Similarly, 40.4% of sales were under the list price, highlighting the varied pricing strategies employed by sellers.

Time to Pending and Conclusion

The median days to pending, as of July 31, 2023, is 13 days. This statistic reinforces the swift pace at which homes are being sought after and acquired, underscoring the urgency and strong demand within the market.

Hence, the Atlanta housing market forecast showcases a blend of data points that offer insights into future possibilities. With an anticipated growth trajectory, competitive sales metrics, and swift pace of sales, the Atlanta-Sandy Springs-Roswell region remains a focal point for real estate activity. Whether you're considering buying, selling, or investing, staying well-informed about these trends will empower you to navigate the Atlanta housing market effectively and make decisions that align with your objectives.

Atlanta Housing Market Forecast 2023-2024
Source: Zillow

Will Atlanta Housing Prices Go Down?

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? The constraint on available inventory is keeping the Atlanta real estate market skewed to sellers. Atlanta and the entire metro area market is hot that it cannot shift to a complete buyer’s real estate market, for the long term. The Atlanta real estate market benefits from a large and robust economy.

According to the data insights provided by the Bureau of Economic Analysis, the Atlanta metro area was the tenth-largest in the U.S. and among the top 20-largest in the world (in 2020). The housing demand in Atlanta is still high across the 11-county metro area. To counter the effects of this ongoing crisis, FED did an emergency rate cut which put rates at their lowest level in the last 50-year span.

In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Atlanta can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s not going to happen. This housing market is skewed to sellers due to a persistent imbalance in supply and demand. The current inventory stands at around 1.9 months which favors property sellers.

Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment. For buyers in Atlanta, the mortgage rates were at their lowest last year, so they took advantage of scooping up their favorite deals which otherwise were taken away by seasoned investors in the bidding wars.

The rising interest rates are already leading to a decrease in mortgage applications. If you are still able to purchase a property whether for investment or personal, we would recommend you do so sooner rather than later because it will only get harder down the road as they make access to credit even more difficult later on. Keep leveraging the credit while you still can and have that money work for you.

Atlanta Real Estate Investment: Where To Buy Atlanta Rental Properties?

Is Atlanta real estate overvalued? Let’s talk a bit about Atlanta and the surrounding metro area. Atlanta is a minimally walkable city in Fulton County with a population of approximately 524,000 people. Atlanta is currently growing at a rate of 1.67% annually and its population has increased by 24.78% since the most recent census, which recorded a population of 420,003 in 2010. Atlanta reached its highest population of 524,067 in 2021.

In 2013, its metropolitan area surpassed the 5.5 million mark for the first time. While growth is slower than it was in the 1990s and early 2000s, it is faster than the previous year and is expected to continue as Atlanta attracts new residents.

Atlanta has a mixture of owner-occupied and renter-occupied housing units. According to Neighborhoodscout.com, a real estate data provider, one and two-bedroom large apartment complexes are the most common housing units in Atlanta. Other types of housing that are prevalent in Atlanta include single-family detached homes, duplexes, rowhouses, and homes converted to apartments.

The Atlanta real estate market has had steady growth over the past several years which makes it a great place to live as well as invest in. Located in the state of Georgia, the city of Atlanta is a hotspot for any type of real estate investing. It is a city with an incredible amount of upside.

The cost of living in Atlanta is reasonable when compared to other big cities like Los Angeles or New York. Everybody loves the low cost of living in Atlanta but the students especially appreciate it making it one of the top rental markets in the United States. This factor alone draws young professionals priced out of those pricier markets.

If you are a savvy investor, you must be aware of the fact that Atlanta real estate has a record of being one of the best long-term investments in the nation. As an investor, you can buy a fully renovated turnkey rental property in Atlanta. It would be the best option for novice real estate investors looking for a steady rental income. Atlanta is a favorite place to live in for millennials who prefer renting over owning.

In the last five years, Atlanta’s job growth averaged 2.3 percent annually, outpacing the national average of 1.6 percent. The attractive cost of living and a multitude of jobs in various industries has made Atlanta one of the hottest residential and labor markets in the country. It continues to grow in terms of population and employment. The population of Atlanta is predicted to reach 8 million by 2040, according to a survey conducted by the Atlanta Regional Commission.

This will further increase rental demand in Atlanta. Atlanta is Georgia’s capital and economic center. It is considered one of the 10 most productive states that contribute to the USA’s GDP annually. As the city continues to go through an economic boom, prices of turnkey properties in Atlanta are forecasted to increase in the following years. People will want to beat out the competition and purchase soon if they’re looking to develop a successful career, surrounded by a diverse community, especially for today’s youth.

Atlanta has shown promising population growth and employment, which are two signs of a healthy real estate market. In the Atlanta metropolitan area, the leisure and hospitality industry had the largest employment gain from October 2018 to October 2019, up 14,700, or 4.9 percent. Local job gains occurred primarily in the food services and drinking places subsector (+11,400). Nationwide, employment in the leisure and hospitality industry rose 2.3 percent over the year.

Top Reasons To Invest In The Atlanta Real Estate Market?

  • Atlanta is one of the Top Rental Markets in the U.S.
  • Home prices are less expensive than the national average.
  • Newly renovated turnkey properties with tenants.
  • Turnkey Investment Properties starting at $100,000.
  • Up to 10% Cap Rate.
  • 500 people move to Atlanta every day!
  • 8 million people were expected by 2040 (Atlanta Regional Commission).
  • Key industries include Health Care, Professional, Scientific, Technology & Logistics.
  • Local Rate of Employment Growth Above the National Average (Bureau of Labor Statistics).
  • Atlanta is one of the five markets poised to eclipse Silicon Valley as a national center of technology growth (Forbes).

Let’s take a look at some of the best suburbs in Atlanta that you might want to consider looking into. Here are the best neighborhoods in Atlanta, which have an overall Niche grade of A or A+ from Niche.com. We’ll be taking a look at some of the important details of these neighborhoods of Atlanta: from population to crime rates to average real estate prices. If you want to buy a house or an Atlanta rental property for sale, then this list of some of the best suburbs in Atlanta is for you. It may help you in selecting the best and safest neighborhoods in Atlanta for your next investment property.

Buckhead Heights, Atlanta, GA

The urban neighborhood of Buckhead Heights has a population of roughly 2,130 people. Residents have been ranked as A, based on ethnic and economic diversity, with many of its residents having bachelor’s or master’s degrees. The average resident earns approximately $93,009. However, the cost of living falls into a grade of B. There are at least 23 public schools that serve this neighborhood; three having ranked as A-. They are the Smith Elementary School, and the Atlanta Neighborhood Charter School for Elementary, and Middle school.

Public education is given the grade of B. Crime rates are pretty low in this area as it is given the grade of B. In the category of violent crimes, only 47 cases of robberies are reported per year. Unfortunately, the Buckhead Heights neighborhood has some property crime cases. The median value of the homes in this neighborhood is $296,500 and the median rent is $1,809. About 59% of the residents like to rent in this neighborhood.

Hanover West, Atlanta, GA

Located in the northern part of Atlanta, Hanover West was deemed the #1 best neighborhood in the city by neighborhood and school-rating website Niche. With a population of roughly 2,930 people, most residents appear to be young adults with bachelor’s degrees. Regarding ethnic and economic diversity, Niche.com rates Hanover West at a grade of B. Moreover, Hanover West Atlanta has been considered to be one of the safest neighborhoods, with few to no recorded violent crimes in the past year. On average, Hanover West has seen 63 burglary and theft incidents per 100,000 residents.

With about 13% of its population being children, there are about 23 public schools around the area. School ratings average at a B, with the best performing public schools being the Atlanta Neighborhood Charter School for Kindergarten through 8th grade. Its middle school campus is ranked #1 as the best charter school in Georgia. The median value of homes in this neighborhood is around $298,736, while rent prices are approximately $1,190. These rates are considerably worth more when compared to the national average home value and rent prices which are $184,700 and $949, respectively.

Collier Hills North, Atlanta, GA

The lovely neighborhood of Collier Hill North has a population of 3,561 and has a grade of A- regarding ethnic and economic diversity. The median household income of this area is calculated to be $68, 569, and approximately 36% of residents have obtained a bachelor’s degree. Niche.com gave public school education a grade of B-. Of the 23 public schools in this area, two are graded A-. Additionally, Collier Hills North is one of the safest neighborhoods on this list as it is given a grade of A+.

There are no reported violent crimes in the area, and only an average of 52 petty crimes are committed under the theft and burglary category. The cost of living is known to have a grade of B-. The median home value in Collier Hills is $715,177. Collier Hills' home values have gone up 2.4% over the past year and Zillow predicts they will fall -1.3% within the next year. The median cost of rent is approximately $1,289, higher than the national average of $949. Most residents have chosen to buy their homes, instead of rent. Collier Hills is one of the best suburbs to invest in the Atlanta real estate market.

Brookwood, Atlanta, GA

A more extensive neighborhood, Brookwood Atlanta consists of 6,046 people with children compromising 5% of the total population. 48% of its residents are noted to obtain bachelor’s degrees. Regarding median household income, residents of Brookwood earn an outstanding $74,057 annually. It has a grade of A for ethnic and economic diversity. On the other hand, the grade of public school education in this area is a B-. However, among the 26 schools that serve this area, five public schools have a class of at least A.

The Grady High school, Atlanta Neighborhood Charter School of both the Elementary and Middle school campuses receive a grade of A. The Inman Middle School and Springdale Elementary School both received a grade of A-. Brookwood Atlanta has been given a grade of A- regarding crime and safety. In terms of violent crimes, 19 cases of robbery are estimated to occur per 100,000 in a year. However, Brookwood has many instances of petty crimes in its neighborhood.

Despite these grades, Brookwood Atlanta has a median home value of $349,879 and a median rent of $1,432. Given those estimates, it is not a surprise to find that 61% of its resident choose to rent their homes whereas only 39% own their houses. Due to the high population of renters, the Brookwood neighborhood is a great choice to invest in Atlanta rental properties. 

Cross Creek, Atlanta, GA

Cross Creek's neighborhood has located near the Atlanta Memorial Park, with a population of approximately 2,143 residents. In the past year, the website Niche.com has rated it as one of the best places for millennials in the Atlanta area. The neighborhood boasts a high diversity rating based on ethnicity and economic status. Most residents appear to be young adults and adults up to 30 years old with bachelor’s degrees. Only 9% of its population is children.

Cross Creek was given a crime & safety rating of B by Niche.com. Per 100,000 residents, there have been some violent crimes, although all below the national average. As for its motor vehicle theft cases, the neighborhood appears to have a higher-than-average count of 511 cases, compared to the national average of 263.

That being said, Cross Creek housing was given a rating of A-, with its median home value being estimated at $192,795. while the median rent is $1,369. Surprisingly, statistics show that homeowners and renters are split in the area at exactly 50% for both. It is also considered to be a good place to live in Atlanta. Investing in Atlanta rental properties in this neighborhood would be a good investment decision.

Hills Park, Atlanta, GA

Hills Park is another good neighborhood of Atlanta with a population of approximately 54,152. Similar to the other neighborhoods, most of the residents in Hills Park Atlanta have obtained a bachelor’s degree, having a percentage of 45%. White-Collar employment amounts to 86.47 %. The median household income of this area is $47,918. Public school education is given a rank of B-, with 30 public schools serve this area. Among these selections, four schools are given a grade of A- and above.

Grade High School has the highest rank regarding the quality of education with a degree of A. The three remaining schools receive an A-. Hills Park is rated B+ on crime and safety. Only 84 cases of robbery are reported per 100,000 residents in one year. However, a considerable number of petty crimes occur in this area, the majority of them falling under the category of theft.

Nonetheless, it is known as a safe neighborhood among folks. Hills Park Atlanta has a median home value of $305,162. and the median rental price of homes in this area is $1,526. Even so, the majority of residents choose to own their homes. 52% of its residents own their homes, while 48% are renting them. Hills Park is one of the best places for living in Atlanta and can be chosen for investing in rental properties.

Midtown Atlanta, GA

Midtown Atlanta is the second-largest business district in the city of Atlanta, situated between the commercial and financial districts of Downtown to the south and Buckhead to the north. Midtown is home to some of Atlanta's priciest apartments. It is a large area of Atlanta immediately north of Downtown with many sites and activities. The skyscraper district aligns with Peachtree Street. To the east of Peachtree Street is Piedmont Park, and to the west are Atlantic Station and the Georgia Tech campus area. With a population of 22, 539, the neighborhood of Midtown Atlanta is the largest in terms of population.

Only 5% of the total population are children. Like the other neighborhoods, people with a bachelor’s degree are the largest among education levels, consisting of 38% of the population. The middle-class household income in this area is $74,194, which is considerably lower compared to the other neighborhoods. Ethic and economic diversity are graded A. Public school education receives a grade of B-. 28 public schools serve this neighborhood, and six of them have been given a grade of A- and higher. Grady High School boasts the highest grade received, which is A. The remaining schools all receive A-.

Unfortunately, Midtown Atlanta has a low score on the crime and safety portion. With a grade of C, the neighborhood has a lot of recorded violent and property crimes. Nonetheless, residents claim that Midtown is the “pulse of the city”, highlighting that living here is a great experience. Likewise, it gained a high rating in the nightlife category. With these ratings, the median home value of this Midtown Atlanta is at $355,944 and the median rental price is $1,444. 55% of its population chose to rent their homes, while the remaining 44% own them. According to Zillow, Midtown Atlanta's home values have gone up 2.4% over the past year. Therefore, Midtown can be considered for investing in Atlanta rental properties. 

Candler Park, Atlanta, GA

Candler Park is a city park located at 585 Candler Park Drive NE, in Atlanta, Georgia. According to Wikipedia, it is named after Coca-Cola magnate Asa Griggs Candler, who donated this land to the city in 1922. Candler Park Atlanta is another large neighborhood regarding population. According to Point2homes.com, the total population of this neighborhood is 19,652. Similar to the other neighborhoods, public school education in this Candler Park Atlanta has a score of B from Niche.com. Among 26 public schools that serve this area, six of them have a rating of at least A-.

Grady High School has a grade of A, making it the highest quality public school in the area. The other schools are graded with a score of A. Regarding crime and safety, Candler Park Atlanta fares as well as Midtown. It has a grade of C+ and many recorded cases of violent and property crimes. A review indicated that in the case of reported criminal activity, police officers are quick to respond. Its median home value is the second-highest on the list, which is estimated to be $450,226. On the other hand, the median rent in this area amounts to $1,222.

The median household income is $100,885. The majority of the residents own their houses, consisting of 60% of the population. The remaining 40% choose to rent their homes. Given the fact that Candler Park is ranked among the best places to live and raise a family in Atlanta, we recommend this neighborhood for investing in rental properties for the long term. According to Zillow, Candler Park home values have gone up 3.6% over the past year.

North Buckhead, Atlanta, GA

North Buckhead Atlanta is a neighborhood in the Buckhead district, at the northern edge of the city of Atlanta, Georgia, and is one of Atlanta's most affluent neighborhoods. North Buckhead Atlanta is also the second-largest neighborhood in terms of population. It has a population of 10,848, according to Point2homes.com. Despite its large community, it has a grade of A- regarding ethnic and economic diversity on Niche.com.

North Buckhead is an uptown commercial and residential district of Atlanta, Georgia. It mostly consists of large single-family homes that are situated among dense forests and rolling hills. As far as crime is considered, much of Buckhead is considered to be safe, except for the Lindbergh neighborhood.

North Buckhead Atlanta has a higher score on the portion of public school education quality. With a grade of B, 35 public schools serve this area. Though only six of them have a rating of A-. These schools are Atlanta Neighborhood Charter School, The Main Street Lower Academy, Riverwood International Charter School, Smith Elementary School, and Jackson Elementary School. The crime and safety portion has a bit lower score of B-. The area has numerous reported cases of violent and property crimes.

Nonetheless, reviewers describe the region as a “truly great place to live, work, and play.” North Buckhead Atlanta has the highest median home value on the list with $588,242. The median rent price is $1,474. The median household income of people in this area is $134,673. Even so, 53% own their homes while 47% rent them. That's almost half of the total population. North Buckhead home values have gone up 0.2% over the past year and Zillow predicts they will fall -2.3% within the next year. Although the home prices are quite high, this neighborhood is currently a buyer's market and this is the right time to invest in a property.

North Springs, Atlanta, GA

North Springs is a quiet neighborhood and has amazing proximity to everything you could want. It is located in the famous city of Sandy Springs which is the most expensive neighborhood in Atlanta. It is a city in northern Fulton County, Georgia, United States, and part of the Atlanta metropolitan area. Both The North Springs and Sandy Springs Stations were opened on December 16, 2000, as part of MARTA's most recent expansion, adding two more stations north of the Dunwoody Station.

The market temperature is neutral at the moment. It is a balanced real estate market. The median home value in Sandy Springs is $512,458. Sandy Springs home values have gone up 2.3% over the past year and Zillow predicts they will fall -2.0% within the next year. The median household income is around $84,000 and a40% of the population like to rent a house in this neighborhood of Atlanta.

Purchasing the best investment properties in Atlanta appears to be on the pricier end. However, this is because you’re also purchasing other positive aspects of the estate such as security, and community diversity. You’re paying for quality real estate in Atlanta when you decide to buy investment properties in the neighborhoods listed above. One disadvantage may come from families looking for premier schools for their children. Most of the schools surrounding the neighborhoods listed in this article are given ratings of B on Niche.com. Considerably, it may be a not so good decision for parents who want their children to attend the best schools in the country.

That being said, Atlanta appears to be a wise choice of city for the youth. In many of the above-mentioned neighborhoods, their residents seem to be young adults, based on their educational attainment. Likewise, Atlanta has come to be a bustling economic center. This is an advantage for people looking to begin or improve their careers. Good cash flow from Atlanta rental property means the investment is, needless to say, profitable. On the other hand, a bad cash flow means you won’t have money on hand to repay your debt. Therefore, finding a good Atlanta real estate investment opportunity would be key to your success.

When looking for real estate investment opportunities in Atlanta or anywhere in the country, the generally accepted standard is to purchase a property that will give you a modest but minimum 1% profit on your investment. An example would be: at $120,000 mortgage or investment cost, $1200 per month rental. That would be the ideal equation for example. Even with rent increases, buying a $500,000 investment property in Atlanta is not going to get you $5000 per month on rent.

When looking for the best real estate investments in Atlanta, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. The neighborhoods in Atlanta must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Atlanta 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 in Class A neighborhoods.

Atlanta, Georgia Real Estate Investment Opportunities

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 Atlanta.

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

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

Georgia's real estate market is a great place to invest in real estate. You can also invest in Savannah real estate market. Savannah, Georgia is separated from South Carolina by the namesake Savannah River. This means the Savannah housing market includes quite a few people living in South Carolina. The Savannah real estate market includes roughly 350,000 people. This makes it the third-largest metropolitan area in Georgia. If you take the de facto suburbs on the Carolina side, these small towns put half a million people in the larger Savannah metro area.

Georgia is bordered to the north by Tennessee and North Carolina, to the northeast by South Carolina, to the south by Florida, and to the west by Alabama. All of these states have some of the best real estate markets where you can buy rental properties.

Charlotte is one such place that we would recommend. Charlotte is the largest city in North Carolina. The city proper is home to more than 800,000 people. The Charlotte Metropolitan Statistical Area is even larger – home to roughly two and a half million people.

It is one of the country’s fastest-growing metro areas, and it was the second fastest-growing city in the southeastern United States. Buying real estate in Charlotte is a good investment, depending upon several factors.

There are so many major companies and professional sporting events that people will always be interested in residing here. Therefore, interested investors aren't likely to allow the listing prices to get too low before they swoop in and take advantage.

On the west of GA is the state of Alabama. Birmingham, Al has seen an upward trend in terms of its population growth. One factor that has led to this increase is its rich nature of mountainous ridges and a good share of physical scenery.

Since its year of discovery, the city has been an educational center of the state of Alabama and has been the favorite destination of many educational aspirants who come here to seek the careers of their choice. Hundreds of schools have been set up in the city of Birmingham and several top-notch universities.

The city's ever-growing population shows a need for real estate investments and developments for the good of the new growing population. There are several good reasons to invest in Birmingham properties.

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


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. 

References:

Market Prices, Trends & Forecasts
https://www.gamls.com/statistics
https://www.atlantarealtors.com/
https://www.zillow.com/atlanta-ga/home-values
https://www.atlantarealtors.com/Resource-Center/abr-market-brief.aspx
https://www.realtor.com/realestateandhomes-search/Atlanta_GA/overview
https://www.realwealthnetwork.com/markets/atlanta-georgia
http://www.metrodepth.com/atlanta/
http://www.justluxe.com/travel/atlanta-news__1899269.php
https://www.bizjournals.com/atlanta/news/2020/06/15/metro-atlanta-housing-sales-tumble-37-may.html
https://atlanta.curbed.com/2020/3/17/21182334/coronavirus-atlanta-home-buying-real-estate-covid-19

Foreclosures
https://www.realtytrac.com/statsandtrends/ga/fulton-county/atlanta

Neighborhoods & Statistics
https://www.niche.com/places-to-live/search/best-neighborhoods/t/atlanta-fulton-ga
https://www.homesnacks.net/richest-neighborhoods-in-atlanta-128964
https://www.point2homes.com/
https://www.zillow.com/

Filed Under: Growth Markets, Housing Market, Real Estate Investing Tagged With: Atlanta Housing Market, Atlanta Housing Prices, Atlanta Real Estate, Atlanta Real Estate Market

Orange County Housing Market Forecast & Trends 2023

September 27, 2023 by Marco Santarelli

Orange County Housing Market

Nestled in the heart of Southern California, Orange County is renowned for its beautiful beaches, diverse communities, and thriving economy. As one of the most sought-after destinations for both residents and tourists, the Orange County housing market plays a crucial role in the region's overall real estate landscape. In this blog post, we will delve into the August 2023 report, exploring the median sold prices and sales figures for existing single-family homes in Orange County and its position in the broader Southern California housing market.

Orange County offers a blend of picturesque coastal cities, suburban neighborhoods, and bustling urban centers, making it an attractive place to live, work, and play. From the vibrant arts scene in Santa Ana to the upscale shopping in Newport Beach, the county offers a diverse range of amenities and activities for its residents. Additionally, Orange County's strong job market, top-notch schools, and favorable climate have contributed to its reputation as a prime location for both families and professionals.

Orange County Housing Market Trends 2023

According to the California Association of Realtors, in August 2023, the housing market in Orange County, California continues to capture attention with its dynamic trends and changes. We will focus on the median sold price of existing single-family homes and the state of sales in the region. We will focus on the median sold price of existing single-family homes and the state of sales in the region.

Median Sold Price of Existing Single-Family Homes

In August 2023, the median sold price of existing single-family homes in Orange County stood at $1,310,000, showing a slight increase from the previous month's figure of $1,300,000. Compared to August 2022, there has been a notable rise, with prices showing a year-over-year increase of 9.2%. This indicates a positive trend in home values within the county.

Moreover, on a month-to-month basis, there was a 0.8% increase, suggesting a steady and gradual growth in home prices, which is a promising sign for both sellers and the overall market stability.

Sales Trends

The sales scenario in Orange County saw a significant month-to-month change, with a 13.3% increase in August 2023 compared to the previous month. However, when viewed in a year-over-year perspective, sales have seen a decline of 8.4% from August 2022.

While the year-over-year decrease might raise concerns, the positive month-to-month change could indicate a potential rebound or adjustment in the market. It's essential to monitor this trend closely in the coming months to understand the long-term trajectory of sales in the Orange County housing market.

Are Housing Prices Coming Down in Orange County?

Despite the fluctuations in sales, the consistent increase in median sold prices year-over-year points to a stable housing market in Orange County. While sales have dipped compared to last year, the market is showing resilience with a steady rise in home values.

Buyers and sellers should keep a close watch on the market dynamics and make informed decisions based on evolving trends. With the information provided in this report, you can navigate the Orange County housing market effectively and make the best choices for your real estate transactions.

Stay tuned for our next monthly update on the Orange County housing market as we continue to track and analyze the latest trends and statistics shaping the real estate landscape.

Is Orange County a Seller's Housing Market?

The real estate market in Orange County, California has been a hot topic lately. Home prices in the area have been rising steadily, and buyers are often left wondering whether it's a good time to make a purchase. One common indicator of a seller's market is when there are more buyers than available homes for sale. So, is Orange County a seller's housing market? Let's take a closer look at the data.

The following housing market trends in Orange County 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.

Let's take a closer look at the current housing market conditions in Orange County to determine if it is indeed a seller's market. In August 2023, the housing market in Orange County, CA is favoring sellers. Let's delve into the key statistics that define this scenario.

  • Median Listing Home Price: $1.2M
  • Year-Over-Year Price Trend: 17% increase
  • Median Listing Home Price per Square Foot: $648
  • Median Sold Home Price: $1.1M
  • Sale-to-List Price Ratio: 100%

This data suggests that homes in Orange County, CA are selling for close to the asking price, with a sale-to-list price ratio of 100%. The median days on market for a home in Orange County is 38 days, indicating a relatively quick turnaround.

The year-over-year increase in the median listing home price is a strong indicator of a seller's market. Additionally, the fact that homes are selling at or near the asking price further supports this conclusion. In a seller's market, demand often exceeds supply, giving sellers an advantageous position in negotiations.

Prospective buyers should be prepared for a competitive market and act swiftly with well-prepared offers. Monitoring the trends and staying informed about the latest market conditions is crucial for making successful real estate transactions in Orange County, CA.

Orange County Housing Market Forecast 2023

Orange County's housing market is poised to experience an interesting outlook in the coming months. While factors such as rising home prices and a seller's market indicate a favorable environment for sellers, it is essential to consider potential shifts in market dynamics. With the possibility of changing interest rates, economic conditions, and housing supply, the forecast for the Orange County housing market remains uncertain.

Higher mortgage rates lead to higher monthly mortgage payments, making it harder for some buyers to afford the homes they want. This could result in lower demand for homes and potentially, a decline in home prices. Additionally, as mortgage rates increase, the amount that buyers can afford to borrow decreases, which could limit their purchasing power and reduce the number of homes they can afford.

However, with lower purchasing power and lower demand, there may be less competition among buyers, which could also lead to lower prices. Furthermore, some buyers may delay their home purchase until mortgage rates come down, further reducing demand and putting downward pressure on prices.

Affordability: Higher mortgage rates lead to higher monthly mortgage payments, making it harder for some buyers to afford the homes they want. This could result in lower demand for homes and potentially, a decline in home prices.

Purchase Power: As mortgage rates increase, the amount that buyers can afford to borrow decreases, which could limit their purchasing power and reduce the number of homes they can afford.

Competition: With lower purchasing power and lower demand, there may be less competition among buyers, which could also lead to lower prices.

Timing: Buyers may delay their home purchase until mortgage rates come down, further reducing demand and putting downward pressure on prices.

In conclusion, the high mortgage rates in Orange County are likely to impact home prices and the buying power of prospective homebuyers in 2023. It's important for buyers to carefully consider these factors when making their home-buying decisions and to be prepared for the financial implications of higher mortgage rates.

The cooling trend is also increasing the number of available homes on the market. It is anticipated that home price growth will continue to decline in the coming months, culminating in year-over-year decreases by the fall of 2023. As the market continues to normalize, a year-over-year price drop may continue its trend in the Orange County housing market.


Sources:

  • https://www.car.org/
  • https://www.realtor.com/realestateandhomes-search/Orange-County_CA/overview
  • https://www.noradarealestate.com/blog/california-housing-market/
  • https://www.noradarealestate.com/blog/southern-california-housing-market/

Filed Under: Growth Markets, Housing Market Tagged With: Orange County home prices, Orange County Housing Market, Orange County Housing Market Forecast, Orange County Real Estate, Orange County Real Estate Market

Mortgage Rate Predictions Next Week & Month [2023]

September 27, 2023 by Marco Santarelli

Mortgage Rate Predictions Next Week

Mortgage Rate Predictions Next Week

Mortgage rates have a significant impact on the real estate market, affecting both buyers and sellers. Even a small shift in interest rates can significantly affect the affordability of homes, monthly payments, and the overall demand for properties. Therefore, it is essential to keep an eye on mortgage rate trends and predictions to make informed decisions. In this blog post will analyze mortgage rate predictions for next week and what it means for buyers and sellers.

What Are the Mortgage Rate Predictions for Next Week?

If you're planning to buy a home or refinance your mortgage, staying informed about mortgage rate trends is essential. Let's take a closer look at the expert poll conducted by Bankrate for the week of September 21-27, 2023. The recent Federal Reserve meeting has concluded, and it's expected to influence the movement of mortgage rates in the upcoming week.

Expert Rate Predictions

The predictions from various experts indicate the following trends:

  • Go up: 40%
  • Stay the same: 47%
  • Go down: 13%

These percentages give us an insight into the general consensus among experts regarding the direction of mortgage rates.

Analysis of Expert Opinions

The majority of polled experts, constituting 55%, anticipate that mortgage rates will rise in the coming weeks. This is influenced by the recent Federal Reserve meeting. The average 30-year fixed rate slightly increased to 7.42 percent as of September 20, 2023, from the previous week's 7.41 percent, based on Bankrate’s national survey of large lenders.

Experts emphasize that until inflation subsides to the Fed’s target range of 2 to 2.5 percent, a significant reduction in mortgage rates isn't expected. The Fed's long-term outlook, as indicated by the dot plot, shows an expectation of rates remaining higher for a longer duration, putting upward pressure on rates.

Some experts, like Melissa Cohn, Regional Vice President at William Raveis Mortgage, believe rates will fluctuate in the upcoming week, leaning towards an increase. However, there's hope for a decline in mortgage rates once the last anticipated rate hike is behind us, leading to a meaningful reduction.

Contrasting Views

Not all experts are aligned on the rate increase. For instance, Heather Devoto, Vice President and Branch Manager at First Home Mortgage, predicts a decline in rates. This dissenting opinion is based on economic commentary from Fed Chair Powell, suggesting potential variations in expert predictions.

Ken H. Johnson, a real estate economist at Florida Atlantic University, focuses on the influence of Ten-Year Treasury yields. If these yields remain steady, mortgage rates are likely to remain unchanged in the following week.

Final Thoughts

As the week unfolds, keeping an eye on economic indicators and the decisions of the Federal Reserve will be crucial for those navigating the real estate and financial landscape. Mortgage rates are poised to fluctuate, but the general sentiment points to a potential rise. It's essential for individuals and businesses to stay informed and agile in response to these changing financial dynamics.

What Do These Mortgage Rate Predictions Mean for Buyers and Sellers?

With the anticipated trends in mortgage rates for the upcoming week, both buyers and sellers in the real estate market need to consider the potential impact on their transactions and decisions.

Buyers

1. Timing is crucial: For buyers planning to secure a mortgage, the predicted rise in mortgage rates suggests that acting sooner rather than later could be advantageous. Locking in a rate now might result in lower overall borrowing costs.

2. Budget considerations: Higher mortgage rates mean higher monthly payments. Buyers should revisit their budgets and financial plans to ensure they can comfortably afford a home with the anticipated rate increase.

3. Explore pre-approval options: With the potential for rates to go up, getting pre-approved for a mortgage now could provide buyers with a competitive edge. It shows sellers that they are serious and financially capable of completing the transaction.

Sellers

1. Market your property effectively: Sellers should highlight the current lower rates to entice potential buyers. Emphasizing the advantage of locking in a lower rate before the anticipated increase could stimulate interest and offers.

2. Be flexible and open to negotiations: As rates climb, some buyers may be more cautious or need to revise their offers to accommodate the higher rates. Being open to negotiation can facilitate a successful sale in a changing rate environment.

3. Monitor local market dynamics: Stay informed about how mortgage rate predictions are affecting buyer demand and behavior in your specific market. Local variations in rate trends may require adjusting your selling strategy accordingly.

For both buyers and sellers, staying informed and adapting to changing mortgage rate trends is essential. The potential rise in rates can impact affordability and decision-making in the real estate market. Buyers should act thoughtfully and efficiently, while sellers should position their properties strategically to navigate these evolving financial landscapes.

Mortgage Rate Predictions for the Next Month?

As homebuyers and homeowners continue to watch the real estate market, a key factor that they are also paying attention to is mortgage rates. The cost of borrowing affects affordability, and can therefore influence both demand and supply in the housing market. The past few years have seen a lot of fluctuations in mortgage rates, and many potential buyers are looking for guidance about what to expect.

As the real estate market progresses into October 2023, the trajectory of mortgage rates is a critical factor for both buyers and sellers. The trends observed in the previous months provide insights into what might unfold in the coming weeks.

Overview of Recent Rate Trends

Mortgage rates have shown notable fluctuations in 2023, experiencing an upward trend in the latter half of the year. From a low of 6.09% on February 2, rates climbed to 7.23% on August 24, as reported by Freddie Mac. This range can be attributed to the Federal Reserve's efforts to combat inflation amidst uncertainties in the banking sector, including the Silicon Valley Bank’s collapse and the fallout from U.S. debt ceiling talks.

The Fed's ongoing fight against inflation, combined with the economic impact of these events, has led to the possibility of further rate hikes aimed at bringing interest rates down.

Expert Predictions for October

Experts from various reputable institutions have provided insights into their predictions for mortgage rates in October:

  • Ralph DiBugnara, President at Home Qualified: Predicts rates will moderate, holding around 7.375% for a 30-year fixed and 6.875% for a 15-year fixed.
  • Danielle Hale, Chief Economist at Realtor.com: Anticipates rates will drop as the economy approaches an inflection point.
  • Jess Kennedy, Co-founder and COO at Beeline: Foresees rates to moderate, possibly starting a downward trend with an anticipated Fed pause.
  • Odeta Kushi, Deputy Chief Economist at First American: Expects rates to moderate, cautioning that a sustained decline might not occur until inflation reaches the Fed's 2% target.
  • Rick Sharga, President and CEO at CJ Patrick Company: Believes rates will moderate, staying in the 7.0-7.5% range for October.

These insights provide a range of opinions, suggesting that while some anticipate moderation, others foresee potential decreases in mortgage rates.

Mortgage Rate Outlook for 2023

Looking ahead to the broader scope of 2023, the consensus among major housing authorities is that the average 30-year fixed interest rates will finish below the current levels. Projections range from the National Association of Realtors' prediction of 6.5% to Wells Fargo's highest forecast of 7.05%, with an average prediction of 6.79% for Q3.

Housing Authority 30-Year Mortgage Rate Forecast (Q3 2023)
National Association of Realtors 6.50%
Fannie Mae 6.80%
Mortgage Bankers Association 6.80%
National Association of Home Builders 6.80%
Wells Fargo 7.05%
Average Prediction 6.79%

Current Rate Trends and Considerations

Presently, mortgage rates have experienced a slight increase after consecutive weeks of drops. The average 30-year fixed rate edged up from 7.18% on September 14 to 7.19% on September 21, 2023. Despite these fluctuations, rates are still below historical averages, providing potential buyers with reasonable opportunities for securing a mortgage.

It's important to monitor these trends closely, as rates could rise or stabilize depending on various economic factors and events both globally and domestically.

Month Average 30-Year Fixed Rate
August 2022 5.22%
September 2022 6.11%
October 2022 6.90%
November 2022 6.81%
December 2022 6.36%
January 2023 6.27%
February 2023 6.26%
March 2023 6.54%
April 2023 6.34%
May 2023 6.43%
June 2023 6.71%
July 2023 6.84%
August 2023 7.07%

Source: Freddie Mac

Conclusion

The mortgage rate predictions for October and the broader outlook for 2023 suggest a nuanced landscape. Buyers and sellers in the real estate market should stay informed about these predictions and be agile in adapting their strategies accordingly. As economic conditions evolve, decisions related to mortgages and property transactions should be made with a keen eye on the changing financial dynamics.


Sources:

  • https://www.bankrate.com/mortgages/rate-trends/
  • https://themortgagereports.com/32667/mortgage-rates-forecast-fha-va-usda-conventional
  • http://www.freddiemac.com/research/datasets/refinance-stats/index.page
  • https://www.blackknightinc.com/category/press-releases
  • https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm

Filed Under: Financing, Housing Market, Real Estate Tagged With: Mortgage Rate Predictions Next Week

Mortgage Rates Next 90 Days: Will Rates Decline?

September 27, 2023 by Marco Santarelli

Mortgage Rates Next 90 Days

Mortgage Rates Next 90 Days

In this article, we'll explore the latest predictions for mortgage rates over the next 90 days and what it means for those looking to buy or refinance a home. For prospective homebuyers and current homeowners, keeping a close eye on mortgage rates is crucial in determining when to make a move in the housing market.

The Federal Reserve's recent shift in expectations for short-term interest rates has stirred the markets. The pause in interest rate hikes in June was expected but appeared to be short-lived. Fed members projected further monetary policy changes for the rest of 2023, indicating at least one rate hike and the possibility of more in the near future.

The market response included recalibration of positions, pushing interest rates higher despite signs of cooling inflation and slightly looser labor conditions.

Mortgage Rates Forecast for Next 90 Days

According to Hsh.com, their recent forecast didn't align accurately with market developments. Fixed mortgage rates, initially stable, took an unexpected turn following the Fed's May meeting. Their late May forecast missed the mark, anticipating a range of interest rates that did not align with the subsequent market shifts. This deviation was observed in both conforming 30-year fixed-rate mortgages and hybrid 5/1 ARMs, highlighting the volatility in the market during that period.

Forecast Discussion

Anticipating the Fed's upcoming policy decisions is becoming more challenging. With an extended gap between the July and September meetings, there is a plethora of economic data to consider before the next policy move. Key indicators include employment reports, CPI data, PCE prices, and GDP growth. Inflation has shown signs of deceleration, while the economy maintains a modest growth rate.

The labor market is slightly looser, with a decline in job openings, but wage growth remains a concern. The Fed aims to strike a balance between policy effectiveness and preventing financial market conditions from loosening excessively.

Forecast

Considering the potential for another rate hike in the coming months, mortgage rates may not see significant declines until there is more clarity in the forward path of the Fed's policies. The uncertainty will persist until the release of the next Summary of Economic Projections, which is expected to bring more clarity. Depending on the inflation trajectory, mortgage rates may either decline or rise. The upcoming September Fed meeting could serve as a turning point for interest rates, impacting the direction they take for the remainder of the year.

In 2022, rampant inflation prompted the Federal Reserve to take action, resulting in significant interest rate increases. The average 30-year fixed-rate mortgage more than doubled during that year. However, as inflation gradually cools, the Fed's approach to rate hikes is adjusting, and experts predict mortgage interest rates will stabilize within a tighter range compared to the spikes observed in early 2022.

While rates may fluctuate in any given week or due to global events causing economic uncertainty, projections suggest a more moderate trajectory in the coming months.

As of September 21, the 30-year fixed-rate mortgage averaged 7.19%, according to Freddie Mac. Various housing authorities anticipate that the average for the third quarter of 2023 will fall below this figure. The National Association of Realtors predicts the average 30-year fixed interest rate to settle at 6.5% for Q3, while Wells Fargo provides the highest forecast of 7.05%.

It's important to note that mortgage rates recently increased after two consecutive weeks of drops. The average 30-year fixed rate edged up from 7.18% on September 14 to 7.19% on September 21. Similarly, the average 15-year fixed mortgage rate rose from 6.51% to 6.54% during the same period.

The final thoughts are that as we approach the fall, the mortgage rate forecast remains subject to the Fed's evolving policy decisions and economic data. Investors and the market at large will closely analyze economic indicators to anticipate interest rate movements. The September Fed meeting is anticipated to be a critical event that may set the tone for interest rates in the coming months. Stay tuned for updates and insights as we monitor this dynamic financial landscape.

Mortgage Rates Predictions for Year End 2023

The National Association of Realtors (NAR) senior economist and director of forecasting, Nadia Evangelou, predicted that if inflation continues to slow down, mortgage rates may stabilize below 6% in 2023. The Mortgage Bankers Association (MBA) expects that 30-year mortgage rates will end in 2023 at 5.2%.

On the other hand, Freddie Mac forecasts that the average 30-year mortgage will start at 6.6% in Q1 2023 and end at 6.2% in Q4 2023. Therefore, housing market stakeholders are keeping a watchful eye on the data-dependent Fed for signals on whether policymakers will maintain or cut the benchmark rate or resume more aggressive tightening measures.

What's the best strategy for prospective homebuyers in this uncertain economic climate? “Be prepared to jump on a dip in rates,” says Robert Frick, the corporate economist at Navy Federal Credit Union. “But only if you have a property in mind that fits your budget.”

According to Compass U.S. region president, Neda Navab, there have been signals that mortgage interest rates may be at or near their peak, given recent encouraging news around inflation and a corresponding drop in the U.S. Treasury yields that help set mortgage rates.

A sustained drop could push mortgage rates into the 5% range late in the second quarter or in the second half of 2023, but that's definitely not guaranteed. Mortgage rates are likely to move in the 6% to 7% range over the next few weeks, which continues to pose a significant challenge to affordability, according to Realtor.com economist, Jiayi Xu.

The fight over raising the debt ceiling is likely to drag into the summer, and mortgage borrowers should expect rate volatility as a result, warns Zillow Home Loans senior macroeconomist, Orphe Divounguy. This rate volatility could mean that prospective homebuyers should not wait for mortgage rates to decrease further, as they may start increasing again soon.

To sum up, it is anticipated that the mortgage rates in the upcoming 90 days will fluctuate, with marginal rises or drops contingent upon the Federal Reserve's efforts to curb inflation. Those intending to buy or refinance a home should remain alert for any favorable changes in the rates, provided they have a property in sight that meets their financial plan. Additionally, they should keep a close tab on the data-based actions of the Fed to gauge whether they will retain or diminish the benchmark rate or adopt more forceful measures to tighten the market.

Home loan rates are being influenced by high inflation and the Federal Reserve's actions to restrain it, leading to fluctuating rates. The best strategy for prospective homebuyers is to be prepared to jump on a dip in rates, but only if they have a property in mind that fits their budget. Experts predict that mortgage rates may stabilize below 6% in 2023, but Freddie Mac forecasts rates to end at 6.2%.

With the fight over raising the debt ceiling likely to drag into the summer, borrowers should expect rate volatility. Prospective homebuyers should remain vigilant for any favorable changes in the rates but shouldn't wait for rates to decrease further, as they may start increasing again soon.


A Few References:

  • https://www.noradarealestate.com/blog/mortgage-interest-rates-forecast/
  • https://www.noradarealestate.com/blog/mortgage-rate-predictions-next-week/
  • https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/
  • https://themortgagereports.com/32667/mortgage-rates-forecast-fha-va-usda-conventional
  • https://www.hsh.com/2month4cast.html

Filed Under: Housing Market, Mortgage, Real Estate Tagged With: mortgage rates, Mortgage Rates Forecast, Mortgage Rates Next 90 Days

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