Norada Real Estate Investments

About Marco Santarelli

Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments – a nationwide provider of turnkey cash-flow investment property.  His mission is to help 1 million people create wealth and passive income and put them on the path to financial freedom with real estate.  He’s also the host of the top-rated podcast – Passive Real Estate Investing.

Is it a Good Time to Buy a House or Should I Wait Until 2024

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Is it a Good Time to Buy a House

If you're looking to buy a house, you might be wondering if it's a good time to buy a house or if should you wait. While there are pros and cons to both options, several factors can influence your decision. This article delves into the components of the HPSI and explores the implications for the housing market.

The decision to buy a house is one of the most significant financial choices an individual can make. It involves not only the consideration of personal financial stability but also the broader economic landscape and housing market conditions. As of September 2023, the Fannie Mae Home Purchase Sentiment Index® (HPSI) sheds light on consumer sentiments and their perspectives on the current state of the housing market. Let's delve into the latest data and explore whether it's a good time to buy a house.

Is it a Good Time to Buy a House in 2023?

The housing market is experiencing unprecedented dynamics, leaving potential homebuyers with a crucial decision: Is it a Good Time to Buy a House in 2023? Here are the factors influencing the housing market and whether one should buy a house now or wait until 2024.

Consumer Sentiment and Market Analysis

The Fannie Mae Home Purchase Sentiment Index® (HPSI) offers insights into consumer sentiment toward housing. In August, the HPSI remained relatively unchanged, reflecting ongoing consumer pessimism about the housing market. Only 18% of consumers felt it was a good time to buy a home, contrasting with 66% who believed it was a good time to sell. This data suggests a challenging landscape for potential buyers.

ALSO READ: When is the Best Time to Buy a House?

Impact of Mortgage Rates and Affordability

Mortgage rates have breached the 7-percent mark, hitting a 22-year high, further dampening consumer sentiment. Affordability concerns persist, with renters and homeowners expressing pessimism about buying a home. The historical context and current market dynamics make affordability a central issue.

Shift in Demand Towards New Home Construction

The dynamics of the existing home space have driven a surge in demand for new home construction. Factors such as the ‘lock-in effect' and Baby Boomers' desire to age in place have disrupted the traditional homebuying cycle. First-time homebuyers are increasingly turning towards newly constructed homes, presenting opportunities for homebuilders and impacting the economy.

Key Highlights from the Home Purchase Sentiment Index

The HPSI increased slightly in August, reflecting a complex housing market scenario. Key components such as perceived home-selling conditions and home price expectations show subtle shifts, influencing consumer perceptions about buying a home.

Considerations for Prospective Homebuyers

When deciding whether to buy a house now or wait until 2024, consider factors like your financial stability, interest rates, and housing market conditions. It's important to weigh the advantages and disadvantages to make an informed decision that aligns with your long-term goals.

Conclusion: Making the Right Decision

Given the unique circumstances in the housing market, determining whether to buy a house in 2023 requires careful consideration. Factors like mortgage rates, consumer sentiment, and housing supply should guide your decision. It's essential to evaluate your financial situation and assess the long-term benefits before making a choice. Whether to buy now or wait until 2024 depends on individual circumstances and market developments.

Remember that the real estate market is subject to change, and staying informed is key to making a well-informed and financially sound choice. Read the full research report for additional information.

ALSO READ: Will the Housing Market Crash?

Is It a Good Time to Buy a House or Wait Until 2024?
Source: Fannie Mae

Should I Buy a House Now or Wait?

The decision to buy a house is a significant step that involves a thorough assessment of your financial situation, market conditions, and personal goals. As you contemplate this important choice, it's crucial to consider both the current housing landscape and your individual circumstances.

Assessing Current Market Conditions

Understanding the current state of the housing market is essential when making a decision about buying a house. Here are some key factors to consider:

1. Interest Rates:

Mortgage interest rates play a significant role in determining the affordability of a home purchase. As of now, it's important to research and monitor interest rate trends. Low-interest rates can make homeownership more affordable, while higher rates can increase your monthly payments.

2. Home Prices:

Examine the trend of home prices in the area you're interested in. Are prices currently high or stable? Are they expected to increase or decrease in the near future? Understanding price trends can help you make an informed decision about timing your purchase.

3. Inventory Levels:

Consider the availability of homes on the market. A low inventory of homes for sale might lead to more competition among buyers and potentially higher prices. Conversely, a higher inventory might give you more options to choose from.

4. Economic Conditions:

Evaluate the broader economic environment. Factors like job stability, local job market trends, and overall economic indicators can impact your ability to make mortgage payments in the long run.

Your Personal Financial Situation

Beyond market conditions, your personal financial situation plays a crucial role in determining whether it's the right time for you to buy a house:

1. Financial Readiness:

Assess your financial health. Do you have a stable income and a good credit score? Have you saved enough for a down payment, closing costs, and potential emergencies?

2. Long-Term Goals:

Consider your long-term goals. How does buying a house fit into your overall financial plan? Are you planning to stay in the area for an extended period? Your answers can help you determine whether homeownership aligns with your life plans.

3. Budget and Affordability:

Create a detailed budget to understand how much you can comfortably afford for a monthly mortgage payment. Remember that owning a home involves more than just the mortgage; property taxes, insurance, maintenance, and utilities are additional costs to consider.

Buy a House Now or Wait?

After evaluating market conditions and your personal financial situation, you'll be better equipped to decide whether to buy a house now or wait:

Buy Now If:

  • Interest rates are low, making homeownership more affordable.
  • You've saved for a down payment and other associated costs.
  • The housing market in your area is stable or showing positive growth.
  • You've evaluated your long-term goals and buying aligns with them.

Wait If:

  • Interest rates are high, and you anticipate they might decrease in the near future.
  • Your financial situation needs improvement, such as increasing your credit score or saving more for a down payment.
  • The housing market in your area is volatile or experiencing a downward trend in prices.
  • Your long-term plans are uncertain, and committing to homeownership doesn't currently make sense.

Is it a Good Time to Buy a House for First-Time Buyers?

Mortgage credit availability
Source: Mortgage Bankers Association

For first-time homebuyers, assessing whether it's a good time to purchase a house is a crucial decision. Several factors influence this decision, including mortgage credit availability, market conditions, and personal financial stability.

Mortgage Credit Availability Increase

In August, the Mortgage Credit Availability Index (MCAI) reported a 0.3 percent increase, reaching 96.6. This uptick indicates a slight loosening of credit standards, providing potential homebuyers with more financing options. The rise in MCAI suggests that lenders are making it somewhat easier to obtain a mortgage.

Understanding the MCAI

The MCAI serves as an important indicator of lending standards. A higher MCAI value implies a more lenient credit environment, making it potentially favorable for first-time buyers. The index comprises various components, including Conventional, Government, Conforming, and Jumbo MCAI.

Component Insights

Within the Conventional MCAI, there was a 0.6 percent increase, indicating a slight relaxation in lending standards for conventional loans. On the other hand, the Government MCAI remained unchanged, suggesting stability in credit availability for government-backed loans.

Notably, the Jumbo MCAI experienced a significant 2.7 percent increase, presenting expanded opportunities for buyers seeking larger loan amounts. In contrast, the Conforming MCAI fell by 2.7 percent, reflecting a tightening of credit for conforming loans.

Expert Insights

Joel Kan, MBA’s Vice President and Deputy Chief Economist, highlighted the dynamics of credit availability. He noted that while overall credit availability increased slightly, it remained close to historically low levels. He emphasized how lenders' adjustments in response to industry dynamics have impacted credit accessibility.

Industry trends, including simplifying product offerings and cost reduction strategies, have contributed to the fluctuation in credit availability. While this has led to reduced credit accessibility, it has also provided lenders with opportunities to expand specific product offerings, particularly in the jumbo loan space.

Conclusion: Considering Your Options

For first-time buyers, the increase in mortgage credit availability, especially in the jumbo loan segment, is a positive sign. However, careful consideration of personal financial circumstances, market trends, and interest rates is crucial in determining whether it's the right time to buy a house.

Evaluating your financial readiness and understanding the implications of current credit trends will aid in making an informed homebuying decision.

The decision of whether it's a good time for first-time buyers to buy a house depends on a multitude of factors beyond just mortgage credit availability. Other important considerations include:

  • Personal Financial Situation: First-time buyers should assess their own financial stability, income, credit score, and existing debt. These factors play a significant role in their ability to secure a mortgage and afford homeownership.
  • Real Estate Market Conditions: Housing market conditions, including supply and demand, local property values, and trends in the area, will impact whether it's a favorable time to buy. A buyer's market with more inventory and lower prices might be more appealing.
  • Interest Rates: While the information provided mentioned higher mortgage rates, the actual rates prevailing in the market at the time of purchase will greatly influence the affordability of a home loan.
  • Long-Term Plans: First-time buyers should consider their long-term plans. If they plan to stay in the home for several years, changes in the mortgage market might have less of an impact.
  • Down Payment and Affordability: The ability to make a substantial down payment and afford monthly mortgage payments is crucial. A higher down payment can mitigate some challenges posed by tighter lending standards.
  • Employment Stability: A steady job or income source is important for mortgage approval and overall financial security.
  • Government Programs: Government-backed programs such as FHA loans might offer more lenient requirements for first-time buyers, making homeownership more accessible even during periods of tighter lending.

Given these factors, it's recommended that first-time buyers consult with financial advisors, mortgage professionals, and real estate experts to make an informed decision. While the decrease in mortgage credit availability might present some challenges, it doesn't necessarily mean that it's a universally bad time for first-time buyers to purchase a house. The broader context of personal circumstances, market conditions, and financial preparedness should guide the decision-making process.

Should I Buy a House or Wait for Recession to Start?

Finding the Right Time & Approach to Buy a House: Finally, when pondering the age-old question, “Should I buy a house or wait for a recession?” it's essential to approach the decision with careful consideration and a clear strategy. The real estate market is subject to economic cycles, and timing can significantly impact your investment. In this article, we will explore the right approach to help you make an informed decision.

The Timing Dilemma

Should I buy a house or wait for a recession? This question often arises when individuals are torn between seizing a current opportunity and waiting for potentially more favorable conditions. To make the right choice, it's crucial to weigh the pros and cons.

Buying During a Recession

One approach is to consider purchasing a house during a recession. This strategy can have several advantages:

  • Lower Prices: During a recession, property prices often dip, offering buyers the chance to acquire real estate at a more affordable rate.
  • Favorable Interest Rates: Central banks tend to lower interest rates during economic downturns, resulting in lower mortgage rates, reducing the overall cost of homeownership.
  • Reduced Competition: With fewer buyers in the market, you may face less competition for the homes you desire.

Waiting for the Right Moment

On the flip side, waiting for the recession to pass may also be a valid approach:

  • Financial Preparedness: Ensure you are financially stable with a secure job and sufficient emergency savings. Recessions can bring job uncertainty, and having a strong financial foundation is essential.
  • Long-Term Goals: Consider your long-term plans and objectives. If you anticipate moving in the near future or have other life changes on the horizon, waiting might be more pragmatic.
  • Market Timing: Timing the market perfectly is challenging. Waiting too long could mean missing out on good opportunities, as predicting the precise start and end of a recession is notoriously difficult.

Therefore, the decision of “Should I buy a house or wait for a recession?” hinges on your unique circumstances and risk tolerance. It's advisable to consult with a financial advisor and a real estate expert to assess your financial readiness and the state of the housing market.

Sources:

  • https://www.fanniemae.com/research-and-insights/surveys-indices/national-housing-survey
  • https://www.realtor.com/research/december-2022-data/
  • https://www.bankrate.com/mortgages/todays-rates/
  • https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales
  • https://www.bankrate.com/mortgages/rate-trends/
  • https://www.mba.org/news-and-research/research-and-economics/single-family-research/mortgage-credit-availability-index-x241340

Pending Home Sales Declined 7.1% in August: What Lies Ahead?

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Pending Home Sales Report

The Pending Home Sales Index is a leading indicator of housing activity. It measures housing contract activity and is based on signed real estate contracts for existing single-family homes, condos, and co-ops. When a seller accepts a sales contract on a property, it is recorded into a Multiple Listing Service (MLS) as a “pending home sale.” Most pending home sales become home sale transactions, typically one to two months later.

The Pending Home Sales Index Explained

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. Pending contracts are good early indicators of upcoming sales closings. However, the amount of time between pending contracts and completed sales is not identical for all home sales.

Variations in the length of the process from pending contract to closed sale can be caused by issues such as buyer difficulties with obtaining mortgage financing, home inspection problems, or appraisal issues. According to the National Association of REALTORS®, the index is based on a sample that covers about 40% of multiple listing service data each month.

In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. An index of 100 equals the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

ALSO READ: United States Existing Home Sales Trends

Pending Home Sales Tumbled 7.1% in August

The real estate market in the United States experienced a significant setback in August, with pending home sales declining by 7.1%. This data, released by the National Association of REALTORS® (NAR) on September 28, 2023, paints a concerning picture for the housing industry. Factors such as rising mortgage rates and a shifting landscape of buyer expectations have contributed to this decline.

Understanding the Decline

“Mortgage rates have been rising above 7% since August, which has diminished the pool of home buyers,” said Lawrence Yun, NAR chief economist. “Some would-be home buyers are taking a pause and readjusting their expectations about the location and type of home to better fit their budgets.”

Key Highlights

  • Pending home sales slumped in August, down 7.1% from July.
  • High interest rates have pushed mortgage rates above 7%, which has impacted home buying.
  • Pending home sales dropped in all four U.S. regions month-over-month and compared to one year ago.

The Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on contract signings – sank 7.1% to 71.8 in August. Year over year, pending transactions fell by 18.7%. An index of 100 is equal to the level of contract activity in 2001.

“It's clear that increased housing inventory and better interest rates are essential to revive the housing market,” added Yun.

Pending Home Sales Regional Breakdown

The Northeast PHSI declined 0.9% from last month to 62.6, a reduction of 18.2% from August 2022. The Midwest index dropped 7.0% to 71.3 in August, down 19.1% from one year ago.

The South PHSI fell 9.1% to 86.5 in August, dipping 17.6% from the prior year. The West index retreated 7.7% in August to 56.3, sinking 21.4% from August 2022.

“The Federal Reserve must consider the sharply decelerating rent growth in its consideration of future monetary policy. There is no need to raise interest rates. Moreover, the government shutdown will disrupt some home sales in the short run due to the lack of flood insurance or delays in government-backed mortgage issuance,” said Yun.

ALSO READ: Will the Housing Market Crash Again?

Pending Home Sales
Source: N.A.R.

Pending Home Sales Trends (Previous Months)

The table shows data from regarding pending home sales in four regions of the United States – Northeast, Midwest, South, and West. The data reveals interesting trends in pending home sales across the regions. The National Association of Realtors (NAR) publishes monthly data on pending home sales, which is seasonally adjusted and presented in the form of a seasonally adjusted annual rate (SAAR) in thousands.

July 2023 Pending Sales Data

In July, pending home sales in the US edged up by 0.9%, marking a second consecutive monthly increase despite the challenges of soaring home prices and rising mortgage rates. This unexpected growth contradicted market expectations of a decline from June. However, in a year-over-year comparison, pending transactions still experienced a 14% decrease.

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), acknowledged the potential for further upticks in contract signings, emphasizing the impact of multiple lost home-buying opportunities. While the economy's vigor leads to rising rates, adding more jobs enlarges the pool of potential home buyers.

Despite these positive aspects, elevated mortgage rates and limited housing inventory have momentarily impeded buying opportunities for many. Regionally, the Northeast and Midwest witnessed declines of 5.8% and 0.4% respectively, while the South saw a 2% increase, and the West experienced a significant 6.2% surge from June, driven by a noteworthy price decline in the past year.

June 2023 Pending Sales Data

The data for June 2023 provides a snapshot of pending home sales in the various regions. In the Northeast, pending home sales stood at 67.1. Meanwhile, the Midwest saw a higher figure of 77.6, and the South recorded even stronger numbers at 93.3. The West region lagged behind with pending home sales at 57.7. In total, the overall pending home sales index rested at 76.8.

The month-over-month changes offer insights into the short-term shifts in pending home sales. The Northeast experienced a modest increase of 0.60%. On the other hand, the Midwest region saw a more substantial rise of 4.30%. However, both the South and West regions faced declines, with -1.17% and -1.20% respectively. Across all regions, the total change in pending home sales was 0.39%.

Comparing the pending home sales data from June 2023 with the same period of the previous year unveils the broader trend. The Northeast and Midwest both exhibited similar year-over-year drops, with -17.06% and -17.18% respectively. The South region experienced a somewhat milder decline of -13.85%. The West, while still affected, displayed a year-over-year change of -16.01%. When combining data from all regions, the total year-over-year change in pending home sales was -15.60%.

Here is the tabular data of pending home sales from June 2022 to June 2023. The units displayed are in thousands and are the seasonally adjusted annual rate.

Source:

  • https://www.nar.realtor/research-and-statistics/housing-statistics/pending-home-sales
  • https://www.mortgagenewsdaily.com/data/pending-home-sales

Connecticut Housing Market: Prices, Trends, Forecast 2023

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Connecticut Housing Market

The housing market in Connecticut has seen significant changes and trends in recent times. It is essential for homebuyers, sellers, and investors to stay informed about the current market conditions and forecasts to make informed decisions. In this blog post, we will explore the house prices and trends in the Connecticut housing market.

Connecticut Housing Market Overview

According to the data from Redfin, in August 2023, home prices in Connecticut were up 9.8% compared to last year, selling for a median price of $426,400. On average, the number of homes sold was down 22.3% year over year, with 3,853 homes sold in August this year, down 4,956 homes sold in August last year. The median days on the market was 34 days, down 3 year over year.

Median Sale Price

The direction and pace at which home prices are changing are indicators of the strength of the housing market and whether homes are becoming more or less affordable. The median price of a home in the United States is currently $426,400.

Top 10 Metros in Connecticut with the Fastest Growing Sales Price

  • Darien, CT – 39.6%
  • Torrington, CT – 26.8%
  • Wilton Center, CT – 25.1%
  • New Britain, CT – 24.7%
  • Wethersfield, CT – 21.9%
  • Bristol, CT – 19.8%
  • Trumbull, CT – 16.4%
  • East Haven, CT – 16.2%
  • Hartford, CT – 14.9%
  • Bridgeport, CT – 14.2%

Connecticut Housing Supply

In August 2023, there were 8,115 homes for sale in Connecticut, down 43.5% year over year. The number of newly listed homes was 2,625, down 41.0% year over year. The average months of supply is 2 months, down year over year.

Connecticut Housing Demand

In August 2023, 64.7% of homes in Connecticut sold above list price, up 6.2 points year over year. There were only 19.7% of homes that had price drops, down from 20.0% of homes in August last year. There was a 103.9% sale-to-list price, up 1.7 points year over year.

Top 10 Most Competitive Cities in Connecticut

  • Sherwood Manor, CT
  • Southwood Acres, CT
  • Wethersfield, CT
  • Coventry Lake, CT
  • Moosup, CT
  • Newington, CT
  • North Grosvenor Dale, CT
  • Thompsonville, CT
  • Windsor Locks, CT
  • Danielson, CT

The Connecticut housing market in August 2023 has shown significant changes in home prices, supply, and demand. With a notable increase in home prices compared to the previous year, it's evident that the market remains robust and competitive. Additionally, the migration trends shed light on where people are moving to and from, offering valuable insights into the changing dynamics of the housing landscape.

Connecticut Housing Market Forecast 2023-2024

The Connecticut housing market continues to show resilience and growth, as per the latest data provided by Zillow. The average home value in Connecticut stands at $381,722, reflecting an increase of 6.4% over the past year. Furthermore, homes in Connecticut are going to pending status in approximately 7 days, indicating a swift and active market. This data is up to date as of August 31, 2023.

Additional key metrics for the Connecticut housing market as of July 31, 2023, include:

  • Median Sale to List Ratio: 1.035
  • Percent of Sales Over List Price: 68.7%
  • Percent of Sales Under List Price: 22.2%
  • Median Days to Pending: 7

Connecticut MSAs Housing Market Forecast

Looking ahead, the housing market forecast for various Metropolitan Statistical Areas (MSAs) in Connecticut showcases promising trends. The table below illustrates the forecasted appreciation in home values from the base date of August 31, 2023, to subsequent dates.

  • Hartford, CT: 1.4% (30-09-2023), 3.4% (30-11-2023), 6.7% (31-08-2024)
  • Bridgeport, CT: 1.2% (30-09-2023), 2.7% (30-11-2023), 5.2% (31-08-2024)
  • New Haven, CT: 1.3% (30-09-2023), 2.9% (30-11-2023), 6.9% (31-08-2024)
  • Norwich, CT: 1.3% (30-09-2023), 3.1% (30-11-2023), 6.7% (31-08-2024)
  • Torrington, CT: 1.3% (30-09-2023), 2.9% (30-11-2023), 7.1% (31-08-2024)

Analysis: Are Housing Prices Dropping in Connecticut?

Based on the provided data and forecast, housing prices in Connecticut are not currently dropping. Instead, the state has experienced an overall 6.4% increase in home values over the past year, indicating a growth trend in the housing market.

Analysis: Is CT a Buyers or Sellers Market?

With 68.7% of sales happening over the list price as of July 31, 2023, and homes going to pending in approximately 7 days, Connecticut can be classified as a seller's market. The high demand and swift turnaround in property sales suggest a competitive market where sellers often have the advantage.

Connecticut Housing Market Forecast 2023-2024
Source: Zillow

Will the Housing Market Crash in Connecticut?

Connecticut's housing market has been performing strongly in recent years, but with the current state of the economy and the ongoing pandemic, some are wondering if a crash is on the horizon. While no one can predict the future with certainty, here are some factors to consider when evaluating the likelihood of a housing market crash in Connecticut.

There is undoubtedly a slowdown in the pace of home sales in the Connecticut housing market, but it is more of a return to normalcy. This is neither a crash nor a bubble; housing demand is still present. The slowdown is ideal for buyers who are weary of being outbid in a hot Connecticut real estate market or who are experiencing buyer fatigue.

When there is a boom in the housing market, it is in part generated by an increase in job growth and a fall in the unemployment rate. The relationship between the economy and the housing market cannot be severed. The strength of the economy and the rate of job growth both have an impact on the purchasing power of prospective homeowners. Connecticut ranks among the top five wealthiest states in the country due to the number of residents who travel to well-paying jobs in New York City and the number of significant corporations with headquarters in the state.

Connecticut also has the fourth-highest percentage of college-educated residents (about 35.6%) and is home to Yale University, which U.S. News & World Reports rated third in the nation in 2015. According to Connecticut State Comptroller, the labor market remains strong. Nationally, there are nearly two job openings for every unemployed worker. Connecticut added 1,600 jobs in May and has now recovered 83% of the jobs lost during the pandemic, including 86% of private sector jobs.

Three sectors — construction, professional and business services, and trade, transportation, and utilities — have added jobs above pre-pandemic levels. Connecticut’s per capita income of $82,918 is the third-highest in the country and, today is increasing the state’s minimum wage to $14 per hour. The state has recovered 83% of the jobs lost during Covid-19 and 3 industry sectors have rescued over 100% of the jobs lost.

Home prices are directly affected by demand, which, according to real estate experts, isn't going away anytime soon. However, they are not rising as quickly as they once did, and Connecticut real estate agents predict that prices will level off or rise slightly this year. Some of this is most likely due to rising interest rates.

Sources:

  • https://fred.stlouisfed.org/series/TNSTHPI#
  • https://www.neighborhoodscout.com/ct/real-estate
  • https://www.ctrealtors.com/
  • https://www.osc.ct.gov/public/pressrl/2022/Jul012022_Financial_Status.pdf
  • https://www.ctinsider.com/connecticutmagazine/article/Whats-next-real-estate-market-connecticut-17023057.php

Frisco Housing Market: Prices, Trends, Forecast 2023

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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

Atlanta Housing Market: Prices, Trends, Forecasts 2023

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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/

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