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Trusted Online Daily Earning Websites to Earn Money in 2023

May 24, 2023 by Marco Santarelli

Daily Earning Websites

Daily Earning Websites

Are you tired of living paycheck to paycheck? Do you dream of a life where you can make money on your own terms, from the comfort of your own home? Well, my friend, you're in luck! In today's world, there are plenty of opportunities to earn a steady income without ever leaving your house. And the best part? These websites pay you daily! Yes, you read that right.

No more waiting weeks or months to see your hard-earned cash. With these daily earning websites, you can make up to earn money and get paid the very same day. So, sit back, grab a cup of coffee, and get ready to learn about some exciting ways to make money online.

17 Trusted Online Websites That Can Pay You Daily for Doing Various Tasks

Are you tired of struggling to make ends meet? Do you want to earn some extra cash on the side without leaving your home? The good news is that there are numerous websites that offer daily payments for work done online. In this article, we'll take a look at 17 websites that pay you daily for your time and effort.

1. Freecash.com

Freecash.com is a great website to make money online. With a simple and easy-to-use platform, it allows you to earn cash for completing various tasks such as watching videos, playing games, and taking surveys. The best part is that you can cash out your earnings via PayPal or gift cards to popular retailers like Amazon and Walmart. Whether you're looking to make a few extra bucks in your spare time or build a sustainable income stream, Freecash.com is definitely worth checking out.

2. Market Force

Market Force is a mystery shopping website that pays people to visit businesses and provide feedback on their experiences. As a mystery shopper, you can visit a retail store, restaurant, or bank, and submit your observations at the end of your experience. You'll get paid for each assignment, which typically ranges from $5 to $20.

3. TryMyUI

TryMyUI pays you to test website user interfaces and apps. You just need to sign up as a tester and complete a sample test. Once you've passed the test, you'll be able to receive paid testing jobs. TryMyUI pays around $10 per test, which takes about 20 minutes to complete.

4. Trymata

Trymata is a platform that allows users to earn money by completing surveys and participating in market research studies. These studies typically involve sharing your opinions and feedback on various products and services. The platform pays out rewards in the form of cash or gift cards, making it a great way to earn some extra income in your spare time. Whether you're looking to save up for a special purchase or just want to supplement your regular income, Trymata is definitely worth checking out!

5. Funds for Writers

Funds for Writers is a website that pays you to write. You don't need to have specific writing skills to be great at writing anymore. With each article averaging 500 to 600 words when accepted, you'll get paid $60 per article. All you have to do is browse their website and apply for different writing jobs.

6. miPic

miPic is a unique platform that allows users to turn their digital photos into products, such as phone cases, tote bags, and more. Not only can you sell your own designs, but you can also browse and buy from other artists on the platform. With miPic, you can earn money by sharing your creativity with the world. So, if you're a talented photographer or graphic designer, miPic is definitely worth checking out.

7. Handy

Handy is an app that offers various jobs, including cleaning, repairing, and delivery. You can build a profile and start getting hired by people who need help with tasks in their homes. Handy pays weekly via direct deposit, so you can start earning money right away.

8. MaxBounty

MaxBounty is a top affiliate marketing network that connects advertisers with affiliates who are willing to promote their offers. Affiliates can earn commissions by promoting a wide range of offers, such as lead generation, mobile app installs, e-commerce sales, and more. MaxBounty is known for its high payouts and fast payments, with affiliates receiving weekly payments via PayPal, ACH, or wire transfer. The network also offers a variety of tools and resources to help affiliates succeed, including tracking software, analytics, and support from experienced affiliate managers.

9. Appen

Appen is a company that offers various jobs related to AI, including language data collection, social media evaluation, and search relevance rating. You can work from anywhere in the world and earn up to $15 per hour. Payments are made via PayPal or direct deposit. Are you looking for a flexible and remote job that lets you work from the comfort of your own home? Look no further than Appen!

This website offers a variety of opportunities to work on projects related to data annotation, transcription, and language translation. With Appen, you can work on your own schedule and earn money daily. Plus, with their commitment to diversity and inclusion, you'll be part of a supportive and welcoming community of remote workers. Whether you're a student, stay-at-home parent, or just looking for some extra income, Appen is a great option to consider.

10. Field Agent

Field Agent is an app that pays you to complete various tasks, such as taking photos of products in stores, checking prices, and filling out surveys. You can earn up to $12 per task, and payments are made through PayPal or Dwolla.

11. Validately

Validately is a user research platform that connects businesses with real people to test their digital products such as websites and mobile apps. By participating in Validately's testing, you can earn money while providing valuable feedback to companies to improve their user experience. It's a win-win situation! Plus, Validately pays you daily, so you can earn money from the comfort of your own home and see the results of your work immediately.

12. Swagbucks

Swagbucks is a rewards program that pays you to complete surveys, watch videos, and shop online. You can redeem your points for cash or gift cards from popular retailers like Amazon and Walmart. Payments are made via PayPal or a gift card.

13. Clickworker

Clickworker is a microtask platform that pays you to complete small tasks, such as data entry, web research, and copywriting. You can work whenever you want and earn up to $9 per hour. Payments are made via PayPal.

14. Li.me

Li.me is a company that offers electric bike-sharing services in various cities worldwide. The company's mission is to provide an affordable and eco-friendly transportation option for urban commuters. With Li.me, users can easily find and rent electric bikes using the company's mobile app. Whether you're commuting to work or exploring a new city, Li.me offers a convenient and sustainable way to get around. Plus, if you're looking for a way to make extra cash, you can become a Li.me charger and earn money by charging and maintaining the company's electric bikes.

15. UserTesting

UserTesting pays you to test websites and apps by recording your screen and providing feedback. You can earn up to $60 per test, which takes about 20 minutes to complete. Payments are made via PayPal.

16. Amazon Mechanical Turk

Amazon Mechanical Turk is a platform that pays you to complete small tasks, such as image tagging, audio transcription, and data entry. You can earn up to $20 per hour, and payments are made via Amazon gift card or direct deposit.

17. Scribie

Scribie is a transcription company that pays you to transcribe audio files. You can earn up to $25 per audio hour, and payments are made via PayPal.

Hence, as you can see that making money online has never been easier. With these daily earning websites, you can earn some extra cash on the side by completing small tasks, testing websites and apps, or writing articles. While these websites won't replace your full-time job, they can certainly provide you with a flexible way to supplement your income and achieve your financial goals. Whether you're looking to pay off debt, save up for a vacation, or simply earn some extra spending money, there's a website on this list for you. So why wait? Start exploring these amazing opportunities and start earning money today!

Filed Under: Making Money Online, Passive Income, Personal Development Tagged With: Daily Earning Websites

Housing Market Crash 2023: Will Real Estate Crash Again?

May 24, 2023 by Marco Santarelli

Will the Housing Market Crash

Will the Housing Market Crash

The US housing market is going through a crucial period in 2023 with conflicting opinions on the future of the market. The housing market has been experiencing a period of significant growth in recent years, with record-low mortgage rates and high demand pushing home prices to all-time highs. However, concerns about a housing market crash have started to surface, with some experts sounding the alarm that the US housing market may be on the verge of a crash.

In this article, we will explore the current state of the housing market, analyze the factors that may contribute to a potential crash, and assess whether a market crash is likely to occur in the near future. Some housing analysts are anticipating a more balanced market with single-digit annual appreciation while others fear a housing market crash or collapse in the near future.

Will the Housing Market Crash?

Inflation is soaring, and there is a fear of an impending recession in the country. However, the majority of real estate professionals do not believe that the housing market is in a bubble or poses a threat to the faltering economy.

Housing caused the worst financial crisis in recent memory. When shoddy mortgages crumbled, the nation was left with foreclosures, numerous new houses remained empty, and millions of Americans were suddenly underwater. Throughout the preceding century, the housing market met considerable barriers, but none, with the exception of the Great Depression of 1929, led to the decrease in home values that happened during the Great Recession of 2007.

It is also important to note that not all economic downturns dampen the real estate market. Despite the economic downturn, the home market and demand remained robust during the 2001 recession. The housing market has been subjected to a number of severe hurdles during the course of the previous century; but, with the exception of 1929's Great Depression, none of these challenges have resulted in a decrease in house values comparable to that of 2007's Great Recession.

The housing market's recent pandemic boom with skyrocketing prices, bidding wars, and an influx of investors has parallels to the previous time. However, this time, the majority of real estate professionals believe that the housing market won't crash or trigger a recession and may even assist the country's recovery. The mortgage sector has taken action against loans that ballooned in size or were intended for borrowers to fail. Only purchasers with consistent, verifiable income may now qualify for mortgages.

This has resulted in a significantly lower risk compared to the Subprime lending during the Great Recession of 2005-2007. The majority of bad mortgages have been eliminated, and lenders have stricter requirements on borrowers. The housing shortage is too severe with many more individuals trying to purchase and rent houses than there are available.

Year-over-year home price growth decelerated in 2022 as mortgage rates rose and housing affordability declined. With mortgage rates continuing to remain high, home prices are predicted to decline in the near term. However, experts do not anticipate the widespread unemployment that characterized the Great Recession and also believe that the recession will be quite brief if it occurs. This means fewer homeowners will be unable to pay their mortgages and those who are struggling may decide to sell their homes at a profit.

Many tapped-out homeowners are stepping back as mortgage interest rates rise into the 6%+ range or close to 7%. Some no longer qualify for mortgages big enough to finance the home they desire, others cannot afford the increased rates and prices, and some are taking a wait-and-see strategy out of fear of a recession. As a result, fewer properties are selling, bidding wars are subsiding, and bids beyond the asking price are decreasing. Numerous house sellers have been compelled to reduce their asking prices.

In the event of a recession, mortgage rates are anticipated to decline, which should reintroduce buyers who did not lose their jobs to the housing market. This will increase home sales and benefit the economy as a whole. The housing market can assist the nation in climbing out of a recession.

While the US housing market is experiencing changes in 2023, most real estate professionals do not believe that it will crash or trigger a recession. The mortgage sector has taken action to prevent a repeat of the Great Recession, and the majority of bad mortgages have been eliminated. The housing shortage is too severe, and the majority of Americans are hoping to avoid another 18 months of hardship. The housing market may even assist the nation's recovery in the event of a recession by increasing home sales.

Millennial Housing Demand: A Buffer Against Housing Market Crash

The housing market crash is a concern for many potential home buyers and sellers. However, the increased demand for homes from the millennial generation may act as a buffer against a potential crash. Millennials and Gen Z want more housing. The housing market is one of the most important indicators of economic growth, and it has been showing some signs of instability in recent years. However, the increased demand for homes from the millennial generation may act as a buffer against the housing market crash.

According to the National Association of Realtors' 2022 Home Buyer and Seller Generational Trends report, millennials now make up the largest percentage of home buyers at 43%, with Generation X buying the most expensive homes at a median price of $320,000.

The report also found that most buyers purchased homes in suburban areas and small towns, dispelling the myth that younger generations are flocking to city centers. Millennials, in particular, are more likely to use the Internet to find a home they will ultimately purchase, and 92% of them use real estate agents to help find the right home and negotiate the terms of the transaction.

The trend of younger generations purchasing homes for the first time is also on the rise, with 81% of younger millennial home buyers purchasing a home for the first time, and just under half of older millennial buyers being first-time buyers. Additionally, the percentage of millennial sellers is on the rise, increasing from 22% to 26% over the past year.

Many factors can contribute to the decision to buy or sell a home, and for all home buyers under the age of 57, the main driver was the desire to own a home of their own. Among those 57 and older, the desire to be closer to friends and family was the top reason, followed by the desire for a smaller home.

While younger generations tended to move shorter distances when relocating, the overall buyers expected to live in their homes for 12 years, down from 15 years last year. For younger millennials and the silent generation, the expected duration was only 10 years, compared to 20 years for younger boomers.

However, debt continues to be a significant barrier for many attempting to buy a home, and both Generation X and younger boomers delayed purchasing a home for five years due to debt, the longest of all age groups. Younger millennials had the highest share of student debt at 45%, with a median amount of $28,000.

Despite these challenges, the increased demand for homes from the millennial generation provides a buffer against a housing market crash. This demand is expected to continue to grow as more of the millennial generation reaches the traditional first-time buyer age, and with this trend, the housing market may remain stable even in uncertain times.

When Will the Housing Market Crash?

The current state of the real estate housing market, which is currently adjusting to record-high inflation and higher interest rates, is giving real estate companies and experts a run for their money, as the continued pressure of these forces is causing difficulties for those who make future predictions. What are the housing market crash predictions? Before answering this question, it is crucial to comprehend what causes real estate markets to fall in the first place.

First, it is essential to recognize that housing markets do not suddenly crash. Multiple variables will exert pressure on a market over time, eventually leading to its collapse. When home values climb too rapidly, a housing bubble arises. When there's demand and the capacity to buy, it may increase. When there aren't enough houses for sale to match demand, competition drives up prices.

When a housing bubble expands and pressure builds, the housing market may crash. Interest rate hikes slow the economy. Demand and jobs might drop. Oversupply promotes a buyer's market and cheaper pricing. The real estate market might then fall or stall down. How can you know how awful and how fast it will go better? It depends on how sustainable development was before the slowdown and how serious the causes are.

Many concerns remain about the housing market. Critically, while one of the biggest drivers of home price growth has been the lack of supply, higher rates are holding back both potential sellers and new construction. As such, there is no relief in sight for an improvement in the housing supply and the sustainable housing market that would come with increased inventory.

As we enter summer 2023, many are wondering whether the housing market is headed for a crash. According to recent data from CoreLogic, the answer may be no, at least for the time being. While there are signs of a slowdown in the housing market's year-over-year growth rate, the overall data and forecasts suggest that a crash is unlikely in 2023.

Home prices continue to rise, albeit at a slower pace, and market indicators indicate a generally positive outlook. However, regional variations and factors like affordability, inventory shortages, and economic uncertainties should be closely monitored. As always, it is advisable for prospective buyers,

Home Price Trends

According to CoreLogic's Home Price Index (HPI), home prices nationwide, including distressed sales, experienced a year-over-year increase of 3.1% in March 2023 compared to March 2022. On a month-over-month basis, home prices rose by 1.6% in March 2023 compared to February 2023. These figures indicate a positive growth trend in the housing market, showcasing the continued appreciation of home prices.

Price Forecast

The CoreLogic HPI Forecast suggests that home prices will continue to rise. It predicts a month-over-month increase of 0.8% from March 2023 to April 2023 and a year-over-year increase of 4.6% from March 2023 to March 2024. These forecasts indicate a positive outlook for the housing market, projecting further growth in the coming months.

Slowing Year-Over-Year Growth

Although home price growth has been consistent, there is evidence of a slowdown. In March 2023, U.S. home price growth fell to 3.1%, the lowest rate since 2012. This decline can be attributed to various factors such as the lack of affordability, inventory shortages, and a slower demand for higher-priced homes compared to median-priced homes. Additionally, concerns regarding inflation, job gains, wage growth, potential recession, and elevated interest rates have made some potential homebuyers hesitant.

Expert Opinions

Selma Hepp, Chief Economist for CoreLogic HPI, highlights the mixed signals from housing markets across the country. While prices in many large metros have shown signs of improvement, the lack of inventory in this housing cycle and the influence of remote working conditions on home prices in certain areas have been noteworthy. Hepp suggests that housing markets will continue to experience declining growth over the spring and early summer before picking up later in 2023.

Regional Variances

The CoreLogic HPI reveals regional variations in home price growth. States such as Arizona, California, Colorado, Idaho, Montana, Nevada, New York, Oregon, Utah, and Washington experienced annual declines in home prices. On the other hand, Vermont, Indiana, and Florida saw the highest year-over-year increases in home prices, indicating diverse trends across different regions.

Where Can the Housing Market Crash in 2023?

The CoreLogic Market Risk Indicator (MRI) plays a crucial role in assessing the health and stability of housing markets across the country. By analyzing various factors and trends, the MRI provides insights into the likelihood of price declines in specific regions.

One area that stands out is Provo-Orem, UT, which has been identified as having a very high risk (70% probability) of a decline in home prices over the next 12 months. This indicates a significant concern for potential homeowners and sellers in this region. It suggests that market conditions in Provo-Orem are such that there is a higher likelihood of prices decreasing compared to other areas.

Boise City, ID; Lakeland-Winter Haven, FL; Salt Lake City, UT; and Ogden-Clearfield, UT are also identified as regions with a high risk for price declines. This means that these areas have exhibited certain characteristics or market conditions that make them vulnerable to potential decreases in home prices.

These market indicators underscore the importance of cautious observation in these regions. Homebuyers and sellers in Provo-Orem, Boise City, Lakeland-Winter Haven, Salt Lake City, and Ogden-Clearfield should closely monitor the market conditions and make informed decisions based on the available data and expert advice.

It's worth noting that the high risk does not necessarily mean that a crash in home prices is imminent. It signifies a higher probability of price declines relative to other regions. Market conditions can change, and external factors such as economic shifts or policy changes can influence the housing market dynamics. Therefore, ongoing monitoring and consultation with real estate professionals who are familiar with the local market are crucial for making informed decisions.

If you are considering buying or selling a home in these high-risk areas, it may be prudent to evaluate your financial situation, consider the potential impact of a price decline, and consult with experts who can provide guidance tailored to your specific circumstances. This approach will help you navigate the market more effectively and make informed decisions based on the current conditions and potential risks associated with these regions.

A Housing Crash Not Coming, but Reduced Demand for Homes

The housing market has been severely impacted by rising interest rates as reflected in the increase in mortgage rates since 2022. This has led to a reduction in housing affordability, which has resulted in fewer people applying for mortgages. The demand for new and existing homes has dropped, home builders are pulling back on construction, and house prices have fallen from their recent peaks. The Federal Reserve's efforts to control inflation have caused a significant decline in house price affordability.

Mortgage rates have been steadily climbing throughout 2022, with the rate on a 30-year mortgage averaging 6.36% in December, more than double the rate of 3.1% in December 2021. The typical monthly mortgage payment, based on the median home price and a 20% down payment, rose approximately 55% between the third quarter of 2021 and the third quarter of 2022. This has driven a collapse in demand to purchase homes. With mortgage rates exceeding 7% for the first time in two decades in October, and set to remain high, compared to 2021, the housing market will continue to face pressure due to affordability.

As demand has dried up, home sales have followed. Existing home sales are down nearly 34% compared with a year ago, while new home sales are down 15.3%. Falling sales have driven new home inventories up and now stand at 8.6 months' supply in September. This has led home builders to become bearish on the market. Both nationally, and for all four reported regions, the NAHB Builders Confidence Index has dropped well below 50.

The collapse in demand and sales is impacting home prices, which were down from summer peaks by over 1% nationally according to Moody's Analytics Home Price Index. The lower end of the market has been more resilient, barely falling since peaking over the summer compared to a decline of 1.6% for the top third of the market. Lower-priced homes are expected to perform better than higher-priced ones given the underlying demand from young adults and the dearth of supply of starter homes.

The Covid-19 pandemic altered consumer preferences for housing. Combined with historically low mortgage rates, buyers drove up house prices to record levels, leaving the market more than 25% overvalued relative to its long-run fundamental value. Based on Moody's Analytics estimates, the national housing market was more overvalued in Q2 2022 than it was during the 2006 Housing Bubble. These valuation levels are not sustainable. Prices are expected to continue to fall 5 to 10% from their recent peaks by the beginning of 2025. The most highly overvalued metro areas will see the largest declines, including Boise, Phoenix, Austin, and Nashville.

It is important to note that a 7.5% decline is only a correction and not a crash. House prices will not crate like they did during the Great Recession. We expect that the FHFA purchase-only HPI will fall back to late 2021 levels in early 2025. Only this year's gains will be wiped out by declines. In 2025, when the next low is reached, we expect prices to be nearly 30% higher than they were at the beginning of 2020.

The underlying need for housing remains strong given current demographics, with recent estimates of a 1.5 million unit housing deficit given expectations for household formations and current vacancy rates. Further, despite recent anecdotal evidence of demand destruction through multigenerational and roommate living arrangements, vacancy rates as of November still indicate that inventory is tight.

For sellers, this could mean a potential decrease in their property value, while buyers may find this a good time to enter the market, as lower prices may provide better affordability. However, buyers should still exercise caution and not rush into a purchase, as the housing market is unpredictable, and prices may continue to fall in the short term. They should also ensure they can comfortably afford their mortgage payments, especially with interest rates remaining high.

Homeowners who are looking to sell their homes may need to be patient and may have to price their homes lower than expected to attract buyers. They should also be prepared for a longer time on the market due to the current slowdown in demand.

Overall, the housing market's decline is not unexpected given the rise in interest rates and overvalued prices. The correction is necessary for the market to return to sustainable levels, and it is not a sign of a housing market crash. As the underlying need for housing remains strong, the market is likely to rebound in the long term, and prices are expected to rise again in the future.

Conclusion

In conclusion, while the housing market may be experiencing a slowdown in year-over-year growth, the data and forecasts do not suggest an imminent crash in 2023. Home prices continue to rise, albeit at a slower pace, and market indicators provide a generally positive outlook.

The US housing market is going through a crucial period in 2023 with conflicting opinions on the future of the market. Some analysts fear a housing market crash, while others anticipate a more balanced market with single-digit annual appreciation. Although the market is experiencing changes, most real estate professionals do not believe that it will crash or trigger a recession.

The mortgage sector has taken action to prevent a repeat of the Great Recession, and the majority of bad mortgages have been eliminated. The housing shortage is too severe, and the majority of Americans are hoping to avoid another 18 months of hardship. Housing demand from Millennials and Gen Z is also expected to remain strong. While there may be a decline in demand and the pandemic-induced housing boom may slow down somewhat, there are no signs of a housing market crashing again in 2023.


Sources:

  • https://www.realtor.com/news/trends/recession-will-housing-market-survive/
  • https://www.noradarealestate.com/blog/housing-market-predictions/
  • https://www.corelogic.com/intelligence/u-s-home-price-insights/
  • https://cre.moodysanalytics.com/insights/research/q42022-the-outlook-for-the-housing-market/
  • https://www.forbes.com/advisor/mortgages/real-estate/will-housing-market-crash/
  • https://www.zillow.com/research/zhpe-q2-2022-not-a-bubble-31093/
  • https://www.freddiemac.com/research/forecast
  • http://www.freddiemac.com/research/forecast/20210715_quarterly_economic_forecast.page
  • https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index.aspx

Filed Under: Housing Market Tagged With: Housing Bubble, Housing Downturn, Housing Downturn in a Recession, Housing Market, housing market crash, Real Estate Housing Market Crash, Will the housing market crash?

Bay Area Housing Market: Prices, Trends, Forecast 2023

May 24, 2023 by Marco Santarelli

Bay Area Housing Market
Bay Area Real Estate Market
Source: CAR

The housing market in the Bay Area experienced a notable decline in April 2023 compared to the previous month and the same period last year. Existing, single-family home sales have decreased, and the median sold prices have also shown significant changes. In this report, we will delve into the details of the market trends and explore the specific sales and price data for different counties in the San Francisco Bay Area.

Bay Area Housing Market Update

Sales Decline and Price Changes

Existing, single-family home sales in California totaled 267,880 in April on a seasonally adjusted annualized rate, reflecting a 4.7 percent decrease from March and a substantial 36.1 percent decrease from April 2022. The sales declines were observed across all regions, with the Central Coast experiencing the most significant drop at -42.8 percent, according to the California Association of Realtors.

The Far North region closely followed with a decline of 41.8 percent, primarily driven by more than 40 percent decreases in four of the six counties in the region. The San Francisco Bay Area (-38.5 percent), Southern California (-37.4 percent), and the Central Valley (-36.7 percent) also witnessed sales declining at a faster pace compared to the previous month.

Median Sold Price in the San Francisco Bay Area

The median sold price of existing single-family homes in the San Francisco Bay Area was $1,250,000 in April 2023, showing a slight increase from the previous month's price of $1,228,000. However, it marked a significant 16.7 percent decrease compared to April 2022. This indicates a challenging market for sellers, as prices have experienced a decline on a year-over-year basis.

County-specific Sales and Price Trends

When looking at specific counties within the San Francisco Bay Area, it's evident that each county has its own unique sales and price trends. While some counties experienced modest price changes and fluctuations in sales, others saw more significant shifts. For instance, Marin County witnessed a substantial increase in median sold price and sales, while Napa County faced notable declines in both categories.

Let's take a closer look at the sales and price trends in various counties within the San Francisco Bay Area:

Alameda County: In April 2023, the median sold price in Alameda County was $1,230,000, showing a slight month-to-month increase of 0.4% compared to March 2023. However, it experienced a significant year-over-year decrease of 18.0% compared to April 2022. Sales in the county also declined, with a month-to-month change of 2.6% and a substantial year-over-year decline of 37.3%.

Contra Costa County: The median sold price in Contra Costa County was $900,000 in April 2023. It saw a positive month-to-month change of 5.6% from March 2023 but a year-over-year decrease of 14.3% compared to April 2022. Sales in the county also declined, with a month-to-month change of 6.0% and a year-over-year decrease of 35.0%.

Marin County: In Marin County, the median sold price was $1,790,000 in April 2023. It experienced a significant month-to-month increase of 11.9% compared to March 2023 but a year-over-year decline of 15.8% compared to April 2022. Sales in the county showed a notable month-to-month increase of 40.0%, but still saw a year-over-year decrease of 30.3%.

Napa County: The median sold price in Napa County was $815,000 in April 2023. It witnessed a month-to-month decrease of 8.4% from March 2023 and a year-over-year decline of 16.4% compared to April 2022. Sales in the county also declined, with a month-to-month change of -15.3% and a substantial year-over-year decrease of 51.2%.

San Francisco County: In San Francisco County, the median sold price was $1,587,500 in April 2023. It experienced a month-to-month decrease of -6.6% compared to March 2023 and a significant year-over-year decline of 22.8% compared to April 2022. However, sales in the county showed a positive month-to-month change of 13.9%, although they still saw a year-over-year decrease of 32.3%.

San Mateo County: The median sold price in San Mateo County was $1,970,000 in April 2023. It witnessed a month-to-month increase of 5.9% compared to March 2023 but a year-over-year decline of 18.0% compared to April 2022. Sales in the county declined with a month-to-month change of -11.8% and a substantial year-over-year decrease of 49.0%.

Santa Clara County: In Santa Clara County, the median sold price was $1,800,000 in April 2023. It experienced a month-to-month increase of 5.9% compared to March 2023 but a year-over-year decline of 8.6% compared to April 2022. Sales in the county also declined, with a month-to-month change of -10.9% and a year-over-year decrease of 44.8%.

Solano County: The median sold price in Solano County stood at $580,000 in April 2023. It had a slight month-to-month decrease of -0.9% compared to March 2023 and a year-over-year decline of -9.4% compared to April 2022. Sales in the county, however, showed a modest month-to-month increase of 3.5%, although they still experienced a notable year-over-year decrease of 26.7%.

Sonoma County: In Sonoma County, the median sold price was $840,000 in April 2023. It witnessed a small month-to-month increase of 1.3% compared to March 2023, but a slight year-over-year decline of -3.4% compared to April 2022. Sales in the county remained relatively stable, with a month-to-month change of -0.8%, while experiencing a significant year-over-year decrease of 39.8%.

These figures provide an overview of the real estate market in each county for April 2023. It is important to note that these statistics reflect the median sold prices and sales changes during this specific period and should be considered in conjunction with other factors when assessing the local housing market conditions.

Bay Area Housing Market Forecast 2023-2024

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

San Francisco-Oakland-Hayward Metro (Bay Area) Forecast up to April 2024

The Bay Area's real estate market is one of the most expensive and densely populated in the US, comprising nine counties and three major cities: San Francisco, Oakland, and San Jose. The San Francisco-Oakland-Hayward housing market has experienced a decline in average home values over the past year, with the current average home value standing at $1,116,046.

This reflects an 8.9% decrease compared to the previous year. However, there is a slightly positive market forecast with a projected 0.3% increase over the next year.

The median sale to list ratio in the market, as of March 31, 2023, is 0.999, indicating that homes are generally being sold close to their listed price. The market also shows a significant percentage of sales over the list price, accounting for 44.0% of transactions, while 44.5% of sales occur under the list price.

In terms of speed, homes in the San Francisco-Oakland-Hayward area are going pending relatively quickly, with a median of 13 days on the market before becoming pending as of April 30, 2023. This suggests a competitive market where properties are being snatched up swiftly.

These statistics provide insights into the current state and forecast of the Bay Area housing market. However, it's important to note that real estate conditions can be influenced by various factors and may vary across different neighborhoods or cities within the region.

Bay Area Housing Market Forecast
Source: Zillow

SF Bay Area Real Estate Investment Overview

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

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

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

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

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

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

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

Bay Area's Strong Economy Propels Real Estate

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

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

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

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

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

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

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

San Francisco Rental Market

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

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

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

SF Rental Statistics

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

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

San Francisco's Geography & Zoning Restrictions Limits inventory

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

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

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

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

San Francisco's Environmental Movement

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

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

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

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

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

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

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

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

San Francisco's Real Estate Appreciation Rate is High

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

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

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

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

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

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


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

References

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

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

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

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

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

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

Filed Under: Growth Markets, Housing Market, Real Estate Investing Tagged With: Bay Area Housing Market, Bay Area Housing Market Forecast, Bay Area Housing Prices, Bay Area Real Estate, Bay Area Real Estate Investment, Bay Area Real Estate Market

Fastest Growing City in the United States 2023

May 24, 2023 by Marco Santarelli

Fastest Growing City in the United States

Fastest Growing City in the United States

In the latest Vintage 2022 Population Estimates released by the U.S. Census Bureau, Texas emerges as the frontrunner with the highest number of fastest-growing cities in the country. The South, in particular, boasts nine out of the 15 cities experiencing rapid growth. This article explores notable cities and trends, shedding light on the population changes and housing unit growth in various regions.

Fastest-Growing Cities in the Nation: Texas Leads the Way

Texas emerges as the leader in the fastest-growing cities in the United States, with Georgetown retaining its position as the fastest-growing city overall. The state's significant population surge is evident, with six cities from Texas featuring in the top 15. Fort Worth stands out for its remarkable numeric population gain in 2022.

While small towns continue to play a vital role in the country, the growth rate varies across regions, with the South experiencing growth and the Northeast and Midwest witnessing declines. The population growth in these cities presents both opportunities and challenges, requiring careful planning and investment in infrastructure and services to sustain the well-being and quality of life for residents.

Georgetown, Texas: The Fastest-Growing City in the Nation

Georgetown, Texas, retains its distinction as the fastest-growing city in the United States for the year 2022. With an impressive growth rate, Georgetown leads all cities and towns with a population of at least 50,000. Crystal Delbé, a statistician from the Census Bureau's Population Division, highlights this achievement while noting that New York remains the nation's largest city despite a recent decline in population. Let's delve into the details of the top-ranking cities.

Texas Dominates the Fastest-Growing Cities List

Out of the top 15 fastest-growing cities, six are located in Texas, showcasing the state's significant population surge. Following Georgetown, Santa Cruz, California, emerges as the second-fastest-growing city with a notable 12.5% increase, adding approximately 7,000 residents. The subsequent three cities experiencing rapid growth are also situated in Texas: Kyle, Leander, and Little Elm.

Numeric Population Growth: Fort Worth Takes the Lead

Texas stands out as the only state with more than three cities on both the fastest-growing large cities by numeric change and fastest-growing large cities by percent change lists. Fort Worth, Texas, secures the top spot for the largest numeric population gain in 2022, with a remarkable increase of 19,170 people. The other cities making significant numeric growth include Phoenix, Arizona (19,053); San Antonio, Texas (18,889); Seattle, Washington (17,749); and Charlotte, North Carolina (15,217).

The Most Populous Cities in the United States

After New York and Los Angeles, the ranking of the most populous cities includes Chicago, Illinois (2.7 million); Houston, Texas (2.3 million); Phoenix, Arizona (1.6 million); Philadelphia, Pennsylvania (1.6 million); San Antonio, Texas (1.5 million); San Diego, California (1.4 million); Dallas, Texas (1.3 million); Austin, Texas (1.0 million); Jacksonville, Florida (1.0 million); and San Jose, California (1.0 million). Fort Worth, Texas, and Columbus, Ohio, both reach a population of 1.0 million as well.

Population Change in Small Towns and Regional Differences

While a significant portion of the population resides in cities with over 50,000 people, the United States remains a nation characterized by small towns. Out of approximately 19,500 incorporated places, around 75% have fewer than 5,000 residents, and almost 33% have fewer than 500. Analyzing regional disparities, small towns in the South observe a growth rate of 0.4%, while the Northeast and Midwest experienced declines of 0.4% and 0.2%, respectively. Western small towns exhibit the most substantial growth with a 0.5% increase from 2021 to 2022.

Rank Area Name State Percent Increase 2022 Total Population
1 Georgetown city Texas 14.4 86,507
2 Santa Cruz city California 12.5 61,800
3 Kyle city Texas 10.9 57,470
4 Leander city Texas 10.9 74,375
5 Little Elm city Texas 8.0 55,357
6 Westfield city Indiana 7.7 54,605
7 Queen Creek town Arizona 6.7 70,734
8 North Port city Florida 6.6 85,099
9 Cape Coral city Florida 6.4 216,992
10 Port St. Lucie city Florida 6.4 231,790
11 Conroe city Texas 6.3 101,405
12 Maricopa city Arizona 6.2 66,290
13 New Braunfels city Texas 5.7 104,707
14 Lehi city Utah 5.6 84,373
15 Medford city Massachusetts 5.2 65,399

Source: U.S. Census Bureau, Population Division, Vintage 2022 Population Estimates, release date: May 2023

Other Highlights from the Report

Several noteworthy highlights emerge from the population data:

Three cities join the list of cities with populations of 50,000 or more in 2022: Wake Forest, North Carolina (51,113); Rockwall, Texas (51,014); and North Port, Florida (50,503). These cities reflect the ongoing population growth and urbanization trends across different regions of the United States.

Housing Unit Growth: Meeting the Demands

As cities and towns experience population growth, the demand for housing units also increases. The Census Bureau's data reveals that many of the fastest-growing cities are also seeing a surge in housing unit construction. Developers and builders are working to meet the housing demands of these expanding communities.

Factors Driving Population Growth

Several factors contribute to the population growth observed in these fastest-growing cities. Job opportunities, affordable housing markets, favorable climate, and quality of life are among the key drivers attracting individuals and families to these areas. Texas, in particular, benefits from its robust economy, business-friendly environment, and affordable cost of living.

Implications for Infrastructure and Services

As cities experience rapid population growth, local governments and authorities face the challenge of ensuring adequate infrastructure and services to meet the needs of the expanding population. This includes investing in transportation systems, schools, healthcare facilities, and other essential services to support the growing communities.


Source:

  • https://www.census.gov/newsroom/press-releases/2023/subcounty-metro-micro-estimates.html

Filed Under: Housing Market, Trending News Tagged With: Fastest Growing City, Fastest Growing City in the United States, Fastest Growing City in the US

AZ Housing Market: Prices And Forecast 2023

May 23, 2023 by Marco Santarelli

Arizona housing market forecast

The Arizona housing market has been experiencing steady growth over the past few years, and 2023 looks to be no different. According to the recent report released by Zillow, the average Arizona home value is $409,196, which is up 4.3% over the past year. This growth trend is expected to continue throughout the year, making it a promising time for buyers and sellers alike. In this blog post, we will take a closer look at the Arizona housing market trends in 2023 and what they mean for buyers and sellers.

The typical home value in Arizona is $409,196, which is up 4.3% over the past year. This growth trend is expected to continue throughout the year, making it an excellent time to invest in Arizona real estate. Here are some additional key takeaways. Based on the data provided, the Arizona housing market is expected to remain competitive in 2023. The median sale-to-list ratio of 0.983% indicates that homes are selling close to their initial listing price.

The high demand for homes is reflected in the 13.8% of sales being over the initial list price. However, there are still opportunities for buyers to find deals on homes, as 64.5% of sales were under the initial list price. The median days to pending of 47 days suggests that homes are selling quickly in Arizona. The market is expected to remain stable in 2023, with most regions showing slight decreases or increases in value.

The latest ZHVF data released by Zillow shows the forecasted percentage change in home prices for various regions in Arizona over the next year, with three different timeframes listed: February 28, 2023; April 30, 2023; and January 31, 2024. It appears that housing prices in most regions of Arizona are expected to decline slightly or remain relatively stable in the short term.

For example, the Phoenix metro area is projected to experience a 0.9% decline in housing prices by the end of February 2023, followed by a further 1.6% decline by the end of April 2023. However, the market is expected to rebound slightly by the end of January 2024 with a 0.2% increase in prices.

On the other hand, some areas are projected to see modest price increases over the same time period. For instance, Sierra Vista is expected to experience a 0.4% increase in housing prices by the end of February 2023, followed by a more significant 1.1% increase by the end of April 2023, and a further 2.6% increase by the end of January 2024.

It's worth noting that these projections are subject to a degree of uncertainty and can change based on various factors such as economic conditions, changes in demand, and other market fluctuations.

ALSO READ: Will the US Housing Market Crash?

The graph below depicts the median or average house value in the region over a number of years. Migration patterns, according to some analysts, are the fundamental reason for this hot housing market. Arizona continues to get a significant number of residents from California, Texas, Illinois, and Washington. There is a limited available supply of homes. Because of the high demand, homebuilders are unable to keep up with supply, and a housing bubble can't burst if there aren't enough homes for sale.

AZ Housing Market Forecast 2023
Source: Zillow

Here's Zillow's forecast for the metro areas in Arizona. Rising home values and listing prices, combined with limited inventory, indicate that Arizona's housing market is tilted toward sellers. This trend is likely to continue for the foreseeable future unless inventory grows faster than demand or rising interest rates ultimately dampens the demand to that extent.

Region Name Forecast for January 2024
Phoenix, AZ -0.2%
Tucson, AZ 1.1%
Yuma, AZ 1.9%
Lake Havasu City, AZ 1.5%
Flagstaff, AZ 0.9%
Sierra Vista, AZ 2.6%
Show Low, AZ 3.1%
Payson, AZ 3.1%
Nogales, AZ 2.1%
Safford, AZ 1.6%

If mortgage rates go on a decreasing trajectory in 2023, prospective buyers may return to the market to increase the demand.  The important thing to take away from the shortage of housing units is that economists anticipate that the price of homes may continue to rise slowly in the AZ housing market in 2023.

On the supply side, it favors the property sellers. The bottom line here is that a stark imbalance between supply and demand continues to put upward pressure on AZ home prices. This partly accounts for the somewhat bold Arizona real estate market forecast for coming years. The other factors are that the economy of Arizona is robust, but the state is struggling with elevated levels of inflation and housing price growth. In 17 different states, the unemployment rate is at an all-time low.

Arizona has 3.3 percent unemployment. The pace of population increase in Arizona is the fourth fastest in the country. A significant number of states saw a loss in population as a consequence of COVID-19, low birth rates, and migration to neighboring states. Florida, Texas, and Arizona are the three states with the most rapid population increases. Years of underbuilding are a key contributor to the low inventory.

According to a study conducted by the Weldon Cooper Center for Public Service at the University of Virginia, Arizona's population is projected to expand by 26.1% between 2020 and 2040 – an increase of 1,897,585 people. As the population is expected to rise yet there are only a few available homes on the market.

This also raises a bit of a concern that in Arizona wages are not keeping up with the rising costs of housing. When prices go up, some buyers can no longer afford to buy and drop out. The faster that pricing goes up, the more buyers tend to drop out, at least in a healthy market. Mortgage rates also play an impact here. In the past few years, interest rates have remained at historically low levels.

This is one of the causes that contributed to a countrywide increase in home-buying activity. However, rates have increased somewhat during the previous several months in 2022. If rates continue to rise, the Arizona real estate market might experience a general cooling trend. However, the persistent supply deficit is projected to “outweigh” this effect, guaranteeing that the AZ housing market will stay competitive long into 2023.

Of course, there is also a great deal of uncertainty in the air. From escalating inflation to the conflict in Ukraine, several elements might affect the economy in the future. Consequently, it is difficult to make reliable projections for the Arizona real estate market or any other market in the United States.

Here's the median price of a home in some of the counties of Arizona (source: Realtor.com)

The data from Realtor.com shows the median listing home price and listing price per square foot for various counties in Arizona. Maricopa County has the highest number of homes for sale and rent, with a median listing home price of $485.3K and a listing price per square foot of $270. Coconino County has the highest median listing home price of $650K, while Cochise County has the lowest median listing home price of $279.9K. The data indicate that the housing market in Arizona is diverse and offers options for buyers with different budgets.

Counties
Median Listing
Home Price
Listing
$/SqFt
For Sale
For Rent
Maricopa County
$485.3K
$270
24,340
9,550
Pima County
$369K
$216
5,994
1,545
Yavapai County
$575K
$301
4,118
250
Pinal County
$389K
$210
6,540
856
Mohave County
$385K
$238
5,020
305
Coconino County
$650K
$373
1,035
227
Navajo County
$463.5K
$268
1,204
41
Gila County
$425K
$287
615
27
Yuma County
$299K
$196
898
100
Cochise County
$279.9K
$166
1,565
130

Arizona's housing market has over 900,000 renter households, accounting for 36% of the total number of households. According to a report from the National Low Income Housing Coalition (NLIHC), rental prices in Arizona have become out of reach for many residents. For too many low-income workers, wages have not kept pace with rising rents and home prices. Workers need to make $21.10 an hour to afford a 2-bedroom rental at a fair-market rate.

In Arizona, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,097. To afford this level of rent and utilities — without paying more than 30% of income on housing — a household must earn $3,658 monthly or $43,892 annually. Assuming a 40-hour workweek, 52 weeks per year, this level of income translates into an hourly Housing Wage of $21.10.

The minimum wage in Arizona is $12.00/hr and the Average Renter Wage is $17.46. Cost-burdened is defined as spending more than 30% of one’s monthly income on housing and utilities. Neighborhoods in west and South Phoenix are the most cost-burdened. In some cases, more than 50% of households are paying 30% or more of their income on housing costs, while less than 29% of renting households are housing cost-burdened in the north.

Flagstaff MSA is the most expensive MSA where you need an hourly wage of $24.35 to afford a 2-bedroom rental. The second most expensive MSA is Phoenix-Mesa-Scottsdale, where you need an hourly wage of $22.56 to afford a 2-bedroom rental.

Arizona Housing Affordability
Source: The National Low Income Housing Coalition

Between 2010 and 2018, the City of Phoenix’s median income increased by only 10%, median rent increased by over 28%, and the median home price increased by over 57% during this time. In 2018, half of Phoenix renters were considered housing-cost burdened, 25% of homeowners were housing-cost burdened and altogether 36% of the entire population is housing-cost burdened. According to a report by Phoenix.gov, 65 % of households that fall within or below the moderate-income range would require some amount of subsidy to achieve housing that is considered affordable at their income level.


Sources:

  • https://www.zillow.com/az/home-values/
  • https://www.realtor.com/realestateandhomes-search/Arizona/overview
  • https://www.thecentersquare.com/arizona/how-arizona-s-population-will-change-in-the-next-20-years/article_86c80054-4e38-5825-b0d1-ede98be1c649.html

Filed Under: Housing Market Tagged With: Housing Market Forecast, housing market predictions

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