Norada Real Estate Investments

Florida Real Estate Forecast Next 5 Years: Will it Crash?

by

The Florida housing market has continued to face challenges caused by rising mortgage rates, resulting in a decline in both single-family and townhouse/condo closed sales. Despite the challenges, the market has seen a significant increase in end-of-month inventory levels for both categories, albeit still short of pre-pandemic levels. In this article, we will take a closer look at the current trends and what they mean for the Florida housing market.

Closed Sales

According to the recent report by Florida Realtors, single-family home sales in January 2023 were down by 32.5% compared to the same period in the previous year, a trend that has persisted for several months. The decline in townhouse/condo sales was even steeper, at nearly 41%. While this is not unexpected given the high mortgage rates, it has resulted in a significant drop in buyer demand.

New Listings

The level of new listings for single-family homes for sale has been below normal, with a decline of about 5% compared to a year ago. This trend is partly due to the high mortgage rates, which are discouraging some potential sellers from listing their homes. In contrast, new listings for townhouse/condos were down by 2.4% compared to the same period in the previous year.

Inventory Levels

At the end of January, the number of single-family homes listed for sale was more than double what it was a year ago, with an increase of over 134%. The inventory levels for townhouse/condos were up 90% on a year-over-year basis. However, these levels are still short of pre-pandemic levels, and in most parts of Florida, we were considered to have an inventory shortage even before the pandemic.

Median Sale Price

The shift in the ratio of active buyers to active sellers has resulted in a deceleration of overall home price growth, but not a full reversal. The median sale price for closed existing single-family home sales in January 2023 came in at nearly $390,000, which is still 4% higher than last January's median price. The median price for townhouse/condos grew by almost 9%, up to $310,000.

The above report shows that despite the challenges posed by rising mortgage rates, the Florida housing market continues to remain resilient. While the decline in sales and new listings is not surprising, the increase in end-of-month inventory levels offers a glimmer of hope. As we move further into 2023, it will be interesting to see how the market continues to evolve and how it responds to the changing economic landscape.

Florida Real Estate Forecast Next 5 years

Florida home values have risen by about 80% over the past 5 years and a positive trend is forecasted for the next 5 years. With the recent spike in mortgage payments as a result of rising interest rates, analysts are watching the Florida housing market closely to see what effect this will have. It is likely to restrict house price increases, but to what amount is unclear because there is still a “fear of losing out” attitude among purchasers, which is fueling the market, although slowly.

It's no surprise that Zillow ranked Tampa, Florida, as the top real estate market in the United States in 2022. Overall, Florida housing prices have witnessed some of the most dramatic increases in the country, with Miami and Tampa at the forefront of the upswing. Due to a variety of variables, the housing market in Tampa has outpaced many others, including a large number of potential buyers, a scarcity of supply, strong property sales, and an active employment market in the area.

Overall, the Florida housing market is strong and is predicted to remain so in the next five years. If you're a seller, this is wonderful news since it implies property values are rising and there isn't much selling competition, giving you the luxury of selecting from the best offers on your schedule. Higher mortgage rates may cause unprepared house buyers to postpone their purchases.

If this reduces buyer demand sufficiently in some Florida areas, price appreciation may decrease. The lower price increase may provide remaining buyers who can afford higher interest rates more confidence in locating a home they can afford. And that leads to fewer home sales. If you're selling a home in Florida this year, the odds are good that you'll come out ahead financially. Real estate prices and mortgage rates are rising, and the few affordable houses that remain are being snapped up like sardines. If you want to buy in this market, now’s not the time to buy.

Whether or not the country enters a recession, the housing market appears to be in good shape for the foreseeable future. Perhaps not at the same rate that the United States has lately seen, but growth nevertheless. This is an excellent moment for real estate investors, particularly those interested in Florida, to capitalize on market possibilities.

Florida Real Estate Appreciation Rates For 10 Years

Florida's real estate market has seen unprecedented price rises during the last few years, as a result of a lack of supply and high demand. Most of the emphasis is focused on the prices and the possibility of a housing bubble. While Florida's mild temperature, cheap taxes, and natural attractions have historically enticed newcomers to the state, if affordable housing challenges continue to prevail across the state, these enticing elements may go away.

A post-pandemic world necessitates that the state of Florida deal with the fact that pricey housing can in certain respects impede economic growth and have an unequal impact on critical segments of the population. Florida has had some of the strongest housing appreciation rates in the country over the past decade.

Over the past decade, Florida's real estate has risen 282.35 percent, which equates to an annual home appreciation rate of 6.14 percent, according to the data collected by NeighborhoodScout. If you are a house buyer or real estate investor, Florida has been one of the finest long-term real estate investments in the United States over the past decade.

Florida’s housing market mirrors larger national trends, albeit with some regional variation. An imbalance between demand and supply has fueled rapid home appreciation across the state. The real estate appreciation rate in the Sunshine State in the last two years (Between 2020 Q3 – 2022 Q3) has been 53.28 percent. Considering the most recent twelve months tracked by them (2021 Q3 – 2022 Q3), Florida's home appreciation rates continue to be among the highest in the United States, at 26.35 percent.

The quarterly appreciation rates (Between 2022 Q2 – 2022 Q3) in FL were 4.36 percent, which amounts to an annual appreciation rate of 18.60 percent. However, high mortgage rates are pushing a lot of buyers out of the market, which can present opportunities for those who are staying in but it will also moderate the rate of appreciation over the next twelve months.

Within Florida, Tampa Bay has one of the most overpriced housing markets in the nation, according to new research from Florida Atlantic University. Extremely low mortgage rates drove our red-hot housing market, particularly during the epidemic, and intensified bidding wars. Lakeland ranks 12th nationally, and second in the state, with homes overvalued by more than 53.2%. North Port-Sarasota-Bradenton is No. 17 nationally, fourth in the state at 48.9%.

Florida Real Estate Forecast

As of February 2023, the typical value of homes in Florida is $377,706 (Zillow Home Value Index). Florida home values have grown by 11.1% over the last twelve months and the median days to pending is 31.

  • The median sale-to-list ratio is 0.997
  • 13.5% Percent of sales over list price
  • 67.9%Percent of sales under the list price

Based on the Zillow data provided, the Florida housing market is likely to continue its growth trend in 2023, but at a slower pace than in the previous year. The typical value of homes in Florida has grown by 11.1% over the last twelve months, which is a significant increase in value. However, this growth rate is likely to slow down as the market stabilizes.

The real estate market in Florida is expected to continue to grow in the coming years, with metro areas like Miami, Tampa, and Orlando leading the way. The latest Zillow data provides insights into the future performance of the real estate market in these metro areas and others across the state. In this blog, we'll take a closer look at the Zillow data and provide a forecast for each metro area.

Miami, FL:

According to the Zillow data, the Miami metro area is projected to see a slight increase of 0.2% in home values by March 31st, 2023. However, this growth is expected to slow down in the following months, with no growth projected by May 31st, 2023. But by February 29th, 2024, home values are expected to increase by 1.7%.

Tampa, FL:

The Tampa metro area is projected to see no growth in home values by March 31st, 2023, but this is expected to change by May 31st, 2023, with a projected decrease of 0.3%. By February 29th, 2024, home values are expected to increase by 2.3%.

Orlando, FL:

The Orlando metro area is projected to see a decrease of 0.2% in home values by March 31st, 2023, with a further decrease of 0.7% by May 31st, 2023. However, by February 29th, 2024, home values are projected to increase by 0.6%.

Jacksonville, FL:

The Jacksonville metro area is projected to see a decrease of 0.2% in home values by March 31st, 2023, with a further decrease of 0.6% by May 31st, 2023. However, by February 29th, 2024, home values are expected to increase by 1.6%.

North Port, FL:

The North Port metro area is projected to see a decrease of 0.1% in home values by March 31st, 2023, with a further decrease of 0.2% by May 31st, 2023. By February 29th, 2024, home values are expected to increase by 2%.

Cape Coral, FL:

The Cape Coral metro area is projected to see a decrease of 0.6% in home values by March 31st, 2023, with a further decrease of 1.5% by May 31st, 2023. However, by February 29th, 2024, home values are expected to increase by 0.2%.

Lakeland, FL:

The Lakeland metro area is projected to see a decrease of 0.2% in home values by March 31st, 2023, with a further decrease of 0.6% by May 31st, 2023. By February 29th, 2024, home values are expected to increase by 1.7%.

Overall, the Florida housing market is likely to remain strong in 2023, with continued demand for homes and steady price growth. However, the market may begin to stabilize as the growth rate slows down, which may lead to more balanced conditions between buyers and sellers. It is important to note that these projections are subject to change based on a variety of factors, including economic conditions, interest rates, and local market conditions.

Florida Housing Market Trends

Florida is one of the most popular destinations for homeowners and investors alike. With its tropical climate, beautiful beaches, and booming economy, Florida continues to attract new residents from all over the world. In this section, we will analyze the Florida housing market for January 2023 based on the data provided by Redfin.

The Florida housing market for January 2023 has shown steady growth in home prices compared to the previous year. However, the number of homes sold has declined significantly, indicating a possible shift in market dynamics. With a higher number of homes available for sale and fewer buyers, the market is currently favoring buyers. However, the low percentage of homes selling below the list price and the relatively high sale-to-list price ratio suggest that the market is still strong for sellers.

Home Prices in Florida

In January 2023, the median home price in Florida was $385,700, up 6.1% from the previous year. The average number of homes sold was down 35.4% year over year, with 21,512 homes sold in January this year, compared to 33,252 homes sold in January last year. The median days on the market was 53 days, up 21 days year over year.

Number of Homes for Sale

In January 2023, there were 138,803 homes for sale in Florida, up 36.1% year over year. The number of newly listed homes was 38,722, down 7.4% year over year. The average months of supply is 5 months, up 3 months year over year. This indicates that the market is currently favoring buyers, with more options available and less competition.

Percentage of Homes Sold Below List Price

In January 2023, only 11.0% of homes in Florida sold below the list price, down 20.6 points year over year. This indicates that the demand for homes in Florida is high, with buyers willing to pay the full asking price or even above. There were only 30.5% of homes that had price drops, up from 12.0% of homes in January last year. This shows that sellers are becoming more realistic about pricing their homes and are willing to adjust prices to meet market demands.

Sale-to-List Price Ratio

In January 2023, the sale-to-list price ratio was 96.6%, down 2.4 points year over year. This means that buyers paid, on average, 96.6% of the listed price for their homes. This indicates that there may be some room for negotiation, but the market is still relatively strong for sellers.

Top 5 Metros in Florida with the Fastest Growing Sales Price

Coral Gables, FL had the fastest-growing sales price, up 87.2% year over year. Winter Park, FL followed closely behind, with a sales price growth of 56.2%. Margate, FL had a sales price growth of 43.8%, while Altamonte Springs, FL and Miramar Beach, FL both had a sales price growth of 34.6%. These cities may offer attractive investment opportunities for buyers looking to invest in the Florida housing market.

Florida Housing Market Annual Report (Year-End)

Here's Florida's statewide housing market data for single-family homes as reported by Florida Realtors for the previous year.

Florida Single-Family Home Sales

  • The number of sales transactions closed in 2022 was 287,352, -18% year-over-year.
  • The number of Closed Sales in 2022 in which buyers exclusively paid in cash was 92,051, -12% year-over-year.
  • The percentage of Closed Sales which were Cash Sales was 32.0%, +7% year-over-year.
  • Cash Sales can be a valuable measure of the level of market participation by investors.
  • Investors are far more likely to have the cash on hand to purchase a house, whereas the average homeowner requires a mortgage or other type of financing.
  • Florida home sales dropped in most price segments in 2022.
  • The highest closed sales were reported in the market segment of $400,000 – $599,999 (81,155 sales).
  • It was followed by the $300,000 – $399,999 segment which reported 43,683 sales.
  • These two were the only market segments that reported year-over-year gains in home sales.

Florida Single-Family Home Prices

  • The median sale price reported for the year (i.e. 50% of sales were above and 50% of sales were below) was $402,500, +15.7% YoY.
  • The average sale price reported for the month (i.e. total sales in dollars divided by the number of sales) was $562,442, +11.3%.
  • The sum of the sale prices for all sales which closed during the month was $161.6 Billion, -8.7% YoY.
  • It is a powerful predictor of the strength of the real estate business in a market, and real estate professionals, investors, and analysts are especially interested in it.
  • The Median Percent of the Original List Price Received was 100.0% in 2022, the same as in 2021.

Days on Market

  • The median number of days between the listing date and contract date for all Closed Sales during the month was 14 days, 2 days more than the previous year.
  • The median number of days between the listing date and closing date for all Closed Sales during the month was 56 Days, 1 day more than the previous year.

New Pending Sales

  • The number of listed properties that went under contract in 2022 was 290,375, -21.1% YoY.
  • Pending Sales are considered to be a decent indicator of potential future Closed Sales.

Florida Housing Supply

  • The number of New Listings put onto the market during the year was 366,296, -3.0% YoY.
  • The number of property listings active at the end of the year was 65,786, +116.8% YoY.
  • Months Supply of Inventory in the Florida Housing Market was 2.7 months, +170% YoY.
  • MSI is a useful indicator of market conditions.
  • The benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory.
  • Anything higher is traditionally a buyers' market and anything lower is a sellers' market.

When Will the Housing Market Crash in Florida?

Population growth, and particularly growth in the number of households, lead to a growth in housing demand. Real estate is subject to the law of supply and demand: when there are more purchasers than available homes, prices rise.  Since the 1940s, Florida's population has increased year after year, often outperforming the national average. However, like the rest of the United States, growth plummeted to historic lows during the initial years of the pandemic until rebounding last year.

Florida is now America's fastest-growing state. According to recent census data, the Sunshine State added over 400,000 additional people between July 2021 to July 2022. It was a growth of 1.9%, bringing the total population to 22,244,823. That makes it faster-growing than Texas, which has the second-largest population in the United States, trailing only California.

According to experts, the national housing market or the market in Florida is nowhere near the crash that occurred during the Great Recession of 2008. This is partially due to tighter lending laws coming from the financial crisis. Borrowers are in considerably better shape, as seen by their improved credit scores. And as a result of rising home values, homeowners have a record amount of equity.

The current situation is a fairly complex web, but it's nothing compared to the 2008-2009 market crisis, which took years to unravel. The Fed's pandemic actions fueled a housing boom. As it tries to withdraw that support, it could be bad news for housing but will it lead to a crash? The Fed will continue to play a crucial role in the future of the housing market.

Back in February 2020, the Fed owned $1.4 trillion in mortgage-backed securities, and the number was falling rapidly. As the pandemic took root, however, the central bank initiated a new round of bond purchases (known as “quantitative easing”), bringing the number to $2.7 trillion.

Fed seeks to tighten monetary policy to combat inflation Although it wants to shrink that portfolio it is quite improbable that the Fed can unwind its balance sheet. It might simply accept the fact that it will continue to play a disproportionate role in the housing market and have a larger balance sheet than it would prefer. Prepare for a collapse, not a correction, in the housing market during the next 18 to 24 months if they do.

According to the financial services business Moody's Analytics, a majority of Florida's metropolitan regions are overpriced by more than 20 percent based on these parameters, which apply to two dozen metropolitan areas. Here are the states with the most inflated housing markets as of the first quarter of this year. Unsurprisingly, coastal regions top the list. At 57 percent overpriced, the Homosassa Springs Metropolitan Service Area (MSA), which encompasses Citrus County, took the top rank. It was also the fourth-best ranking in the nation.

Florida’s Top 10 “Most Overpriced” Housing Markets (By Moody’s Analytics)

  • Homosassa Springs MSA (57%)
  • Palm Bay-Melbourne-Titusville MSA (48%)
  • Punta Gorda MSA (45%)
  • Vero Beach-Sebastian MSA (42%)
  • Port St. Lucie MSA (40%)
  • Crestview-Fort Walton Beach-Destin MSA (40%)
  • Cape Coral-Fort Myers MSA (39%)
  • Miami-Miami Beach-Kendall Metropolitan Division (39%)
  • Naples-Immokalee-Marco Island MSA (38%)
  • North Port-Sarasota-Bradenton MSA (38%)

These price increases are problematic for Floridians for a variety of reasons. Although industry experts expect that the market will eventually recover, as it always does, these increased property prices may persist for some time. But when it decelerates, homeowners will not profit as much.

“Florida homeowners are much wealthier due to the rise in property values across much of the state, but not as affluent as they may believe,” Zandi said. It will be more difficult for homeowners to move up to a more costly property or use their home's equity to fund their expenditures. In addition, many middle-to-low-income people and first-time homebuyers are priced out of the market, according to Zandi, since they cannot afford not only the high sale prices but also the increasing mortgage rates and homeowners insurance.

10 Florida Markets Are Overvalued, According To A Rental Trends Study

According to new research on rental market trends, the Florida rental housing market is among the most overpriced in the country and has among the fastest-rising prices. The moratorium's expiry, along with the high demand for rentals, particularly in Florida, pushed rental costs skyrocketing. Landlords will continue to hike rents until additional rental units are developed, pricing off many middle-class customers who previously rented because they couldn't afford to purchase.

The research of 107 U.S. rental areas, published on June 6 and based on April data, discovered that ten of the country's most overpriced rental markets are in Florida. All ten Florida markets covered in the analysis are overpriced by more than 13 percent. The Miami market, which encompasses Miami-Dade, Broward, and Palm Beach counties, was identified as having the highest “premium” paid by renters.

The investigation revealed that it was 22.07 percent overpriced. The average monthly rent in South Florida increased to $2,846, despite historical data indicating that the average should be just $2,331. In the Fort Myers region, rental expenses increased the most year-over-year. The average rent is now $2,073, an increase of 32.38 percent from one year ago. The rental prices in the nine other Florida markets included in the research increased by more than 20 percent annually, and they all ranked in the top 15 out of 107 areas for this criteria.

“A lot of our Florida markets are way overpriced compared to the rest of the country,” said Ken H. Johnson, a real estate economist at the Florida Atlantic University College of Business, who is a co-author of the study.

Florida Housing Market Predictions 2023

Florida has one of the nation's hottest housing markets. Home sales usually are directly tied to an economy's health and rise and fall with economic activity. As economies slow, the supply of money tends to become more restrictive. As money becomes harder to borrow, fewer home buyers enter the housing market.

With year-round sunlight (giving it the nickname “The Sunshine State”) and world-class amusement parks, Florida is a popular worldwide tourist destination. The economy is active and varied, with dozens of international corporate headquarters. Eighteen companies with headquarters located in Florida earned a place on Fortune magazine’s 2020 list ranking enterprises with the 500 highest fiscal-year revenues in the nation.

Florida’s Economy Continues to Thrive

  • Florida’s seasonally adjusted unemployment rate was 2.5 percent in December 2022.
  • It was down 0.1 percentage points from the November 2022 rate, and down 1.0 percentage points from a year ago.
  • There were 271,000 jobless Floridians out of a labor force of 10,761,000.
  • The U.S. unemployment rate was 3.5 percent in December.
  • Florida gained 440,000 jobs over the year, an increase of 4.8 percent.
  • Nationally, the number of jobs rose 3.0 percent over the year.
  • All nine major private sector industries in the state have surpassed pre-pandemic employment levels.
  • In December 2022, Miami-Dade County and Monroe County had the state’s lowest unemployment rate (1.4 percent each).
  • It was followed by St. Johns County (1.8 percent), and Wakulla County & Okaloosa County (1.9 percent each).
  • Highlands County had the highest unemployment rate (3.6 percent) in Florida in December 2022,
  • It was followed by Citrus County (3.5 percent), and Sumter County (3.4 percent).

Industries gaining the most jobs over the month were:

  • Leisure and hospitality with (+88,600 jobs, +7.4 percent).
  • Education and health services (+83,800 jobs, +6.2 percent).
  • Trade, transportation, and utilities (+82,700 jobs, +4.4 percent).
  • Professional and business services (+53,400 jobs, +3.6 percent).

Florida is a Hot Spot for Real Estate Investment for a Few Reasons

Florida's strong population growth, diverse job market, tourist attractions, affordable property prices, tax benefits, and diversified economy all contribute to making it a hot spot for real estate investment.

1. Strong population growth and job market: Florida has strong population growth, particularly in cities like Miami, Orlando, and Tampa. This leads to an increased demand for housing, making it a prime location for real estate investment. Additionally, Florida's job market is diverse and growing, which attracts new residents and supports the demand for housing.

2. Tourist Attraction:  Florida is a booming real estate market due to tourism. Florida attracts millions of tourists annually. In tourist-heavy areas like Miami, Orlando, and others, vacation rental properties are in high demand. Vacation rentals offer greater space, privacy, and facilities than hotels for Florida tourists. Investors can earn rental income and gain property value via vacation rentals.

Vacation rental properties are more reliable and profitable than typical rental properties due to high demand. Tourists pay extra for comfortable vacation rentals. Tourist demand can remain consistent throughout economic downturns, making vacation rental properties more market-resilient. Florida's great tourist draw can offer real estate investors looking for vacation rental properties a reliable and successful revenue stream and property value appreciation.

3. Affordable property prices: Compared to other states like California, property prices in Florida are relatively affordable, which can make it an attractive option for real estate investors. This can lead to strong returns on investment and can make it easier for investors to purchase multiple properties. It's important to note that property prices can vary widely depending on location and property type. While some areas of Florida may have lower property prices, other areas, such as beachfront or tourist-friendly areas, may have higher property prices.

4. Tax Benefits: Florida has no state income tax, which can be a significant advantage for real estate investors. This can lead to higher net returns on investment and can make it a more attractive option for real estate investors.

5. Diversified economy: Florida's economy is diverse, with a mix of industries such as agriculture, tourism, aerospace, and technology. This diversified economy can help insulate the state from economic downturns, which can be beneficial for real estate investors.

However, it's always important to do proper research, understand the market and the property before investing, and have a solid plan in place for managing risks.

Denver Housing Market: Prices, Trends, Forecast 2023

by

Is the Denver housing market moving in favor of buyers in 2023? As the Denver Metro Housing Market continues to evolve, this blog will keep you up-to-date. The Denver housing market remains tight for buyers, according to the latest report from the Denver Metro Association of Realtors. The report shows that there is still a shortage of properties available for purchase in the area, making it challenging for prospective homebuyers to find the right home.

The Denver Area housing market continues to be impacted by a lack of inventory, which is leading to elevated home prices and a slower pace of sales. However, the rental market is seeing growth, and there is a positive trend in buyer activity. If you're looking to buy or rent in the Denver Metro area, it's essential to work with a knowledgeable agent who can help you navigate the market. Based on the latest REcolorado MLS data, here's what you need to know about the Denver Area housing market in April 2023.

Inventory and Months of Supply

In April 2023, the number of fresh home listings to hit the market was 29% lower than the same period last year. The number of new Denver Metro listings year-to-date was lower than we’ve seen in over a dozen years. As a result, standing inventory, or the number of listings actively available for sale at the end of the month, is 166% higher than it was last April. Homes were actively available for sale a median of 8 days, which is twice as long as the previous year.

Denver Home Sales

The number of closings in the Denver Metro area was down 26% in April 2023 compared to last year. Although there was a month-over-month uptick in buyer activity with 12% more contracts written on homes in April than in March, higher interest rates and a lack of inventory led to a decrease in closings.

Denver Median Home Price

In April 2023, the median closed price of a Denver Metro area home was 7% lower than last year at this time, but still 10% higher than in April of 2021. Home prices are holding strong thanks to high demand and a lack of inventory. Despite a 7% year-over-year decline, home prices are still elevated.

Days on Market

In April 2023, it took twice as long for a contract to be executed on a Denver Metro area home compared to last year. Homes were actively available for sale a median of 8 days. Although homes saw a seasonal uptick from March to April, the median closed price of a Denver Metro area home was 7% lower than last year at this time.

Rental Market Stats

In April 2023, the number of properties leased using REcolorado MLS increased by 58% compared to last year. The median lease price of those properties was 7% higher than last April. Single-family residences comprised 57% of the leased properties.

ALSO READ: Colorado housing market forecast & trends

As of May 2023, the average rent for a 1-bedroom apartment in Denver, CO is $1,758. This is a 0% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Denver decreased by -1% to $1,410. The average rent for a 1-bedroom apartment increased by 3% to $1,758, and the average rent for a 2-bedroom apartment decreased by -1% to $2,311.

  • The average rent for a two-bedroom apartment in Denver is $2,311, a 1 percent drop over the previous year.
  • The average rent for a three-bedroom apartment in Denver is $2,850, a 2 percent rise over the previous year.
  • The average rent for a four-bedroom apartment in Denver is $3,220, a 9 percent rise over the previous year.

Denver Housing Market Forecast 2023: Will it Crash?

The Denver real estate market predictions for 2023. Denver has a track record of being one of the best long-term real estate investments in the U.S. Denver's strong economy gives buyers the ability to spend more on housing, consequently increasing real estate prices. Home values rose so much over the past six or seven years that affordability became an issue for a person earning the median income in this area.

According to DMAR, 2023 will be difficult for the Denver housing market. Buyers and sellers will assess uncertainty when deciding whether to buy or sell. Expect difficulties throughout the first half of the year as the economy recovers. Housing should stabilize in the second half of economic conditions moderate.

Inventory fluctuations indicate market direction. Many homeowners who want to sell struggle with giving up their low mortgage rate for a much higher one. 85% of mortgages are under 5%. “Must move” vendors will reduce inventory. Low inventory slows property value declines.
In the second half of 2022, closed transactions plummeted. 2023 should follow this pattern. Eight to 13 percent fewer closed deals in 2023 compared to 2022 will lower real estate activity.

Yes, that's a substantial drop and will challenge everyone in the real estate industry. NAR forecasts 7% fewer closings. Mortgage rates remain an issue. Payment shock and affordability concerns for purchasers sparked market cooling in 2022. Rates remained variable at 6.4 percent in 2022. I'm not a mortgage professional, but most experts I've spoken with expect rates to stabilize in the second half of the year at five to 5.5 percent. Good news.

Will Denver home values fall in 2023? Prices will decline, but less than expected. Prices will drop 4–6%. They are expected a comeback by 2024 after a bad first half. NAR estimates a 1% price hike nationwide. NAR expects the smallest-gaining markets to lead in 2023. Unfortunately, Metro Denver was often one of the top-performing markets in the nation and will likely not be this year. However, lower sales should lower prices. Since it will take longer to sell and buyers will use their newfound leverage, client expectations must be managed.

Let us look at the home price appreciation trends recorded by Zillow over the past year. Zillow Home Value Index — The typical home value of homes in the Denver-Aurora-Lakewood Metro is currently $581,378. It indicates that 50 percent of all housing stock in the area is worth more than $581,378 and 50 percent is worth less (adjusting for seasonal fluctuations). Denver home values have gone down 1.7% in the last twelve months. Zillow forecasts that Denver home values are expected to decline by 1.8% between March 2023 and March 2024.

  • Typical Home Values: $581,378
  • 1-year Value Change: -1.7%
  • 1-year Market Forecast: -1.8%
  • 22.3% Percent of sales over list price
  • 55.5% Percent of sales under list price
Denver housing market predictions
Credits: Zillow.com

In conclusion, we can say that these numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? In a balanced real estate market, it would take about six months for the supply to dwindle to zero. In terms of months of supply, Denver can become a buyer's real estate market if the supply increases to more than six months of inventory. Months Supply of Inventory in the metro Denver housing market is still low as compared to a glut of buyers. However, it is shifting towards a more balanced housing market in 2023. Nationally, the houisng market is also cooling off from its pandemic-induced peak.

Is Denver a Good Place to Invest in Real Estate?

Should you consider Denver real estate investment? You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2023. Denver is ranked as the country's 16th-most walkable city, with 600,158 residents. It has some public transportation and is very bikeable. Downtown is the most walkable neighborhood in Denver with a Walk Score of 93.

As per Neigborhoodscout.com, a real estate data provider, one and two-bedroom single-family detached are the most common housing units in Denver. Other types of housing that are prevalent in Denver include large apartment complexes, duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 40-45% of Denver's housing units.

Denver ranked 13th for overall real estate investment and development, according to some 3,000 industry professionals surveyed and interviewed by the Urban Land Institute and PwC. Survey respondents viewed Denver's housing market even more favorably, collectively ranking it ninth overall.

Of greater importance to real estate investors in Denver is that the area is growing in population. The jobs are increasing and so are the number of renters. It is the largest and capital city of Colorado, home to roughly 700,000 people. The Denver metropolitan area is home to around 2.7 million people. The population has increased by 1.33% since 2019. The Denver-Aurora, Colorado statistical area is home to about three and a half million people.

It has a low unemployment rate of 3% unchanged from 3.30 last month and down from 6.70% one year ago, according to the U.S. Bureau of Labor Statistics. A third of the population of the Denver metro area rents. All these are excellent signs of investors looking to buy a rental property in Denver. Despite the recent cooling off, there are several reasons to consider a long-term investment in the Denver real estate market.

Shortage of housing for a growing population, a strong economy & increasing jobs have been fueling the demand in the Denver housing market for the past many years. Denver is a key trade point for the country, and home to several large corporations in the central United States. It was named 6th on Forbes Magazine’s “Best Places for Business and Careers.” Denver South is home to 7 Fortune 500 companies. It is also home to mining and energy companies such as Halliburton, Smith International, Newmont Mining, and Noble Energy.

Let’s take a look at the number of positive things going on in the Denver real estate market which can help investors who are keen to buy an investment property in this city. We’ll address the biggest factor pulling people to the Denver housing market next.

How Was the Housing Market in Denver Last Year?

Two halves define 2022. According to DMAR's year-end report, low inventory drove the fast-paced housing market to record prices in the first half of the year. As economic conditions worsened in the second half of the year, many homebuyers reconsidered or delayed their purchase. Housing was decent in 2022.

Supply and demand determine market values. 1,184 active postings began in 2022. February had 1,226. Monthly new listings affect inventory levels. 2022 saw 60,164 new listings, 9.3% fewer than in 2021. New listings fell in 2022. Like new listings, closed transactions fell from 2021's record 64,105. 50,743 closings were 20.84% lower than last year.

Why are fewer homeowners selling? Most homeowners refinanced below 5%. The homeowner suffers in a higher mortgage rate environment. If you sell with a 3.5 percent mortgage, the new mortgage on the replacement house may be over six percent. The extra cost will burden homeowners. Months of inventory is another market indicator. MOI analyses supply and demand for active and closed listings.

A low MOI indicates a tight supply and gives sellers the advantage. This has been the Denver housing market since 2012. 2022 averaged 1.26 MOI. The lowest MOI was 0.56 in 2021. January's 0.42 MOI compares considerably with December's 1.75 MOI. Balance? Does the four-to-five-month balanced market criterion still apply? Buyers have the upper hand due to historically low inventory. Two-to-2.5 months may be the new standard. Does balancing feel like this?

Freddie Mac's primary mortgage market survey reported a 2.96 percent 30-year fixed rate in 2021. We finished 2022 at 6.42 percent, up 3.46 points in 12 months, reaching 7.08 percent in October and November. Higher rates induced buyer payment shock and slowed activity. 2022 indicates a market in transition from highs to lows. The average closing price reached a record $721,767 in April but dipped to $637,852 in December.

The median closing price was $616,500 in April and $554,990 in December. In 2022, the median closing price was $588,000, up 12% from last year. MLS days set new lows. MLS averaged eight days in April, but 43 days in December. February through May had MLS median days of four, and December had 30. Despite the feeling, 2022's Denver housing market was good.

A third of the Denver metro area rents. Since housing inventory is scarce, prices are going up much faster than wages, and the younger population is more comfortable renting than owning, the Denver housing market is seeing a rapid rise in its rental market. The sheer demand for housing stock is making it profitable to break up large homes into multiple apartments.

Denver remains more expensive than other Colorado cities, including Fort Collins and Colorado Springs, and other major metro areas such as Phoenix and Charlotte, but considerably below California-based rent leaders and more. If Forbes could recommend this as a Denver real estate market investment strategy in 2016, it can be seriously considered today.

They said that any single-family home in the Denver housing market could be considered a good rental property due to the rapid rise in home prices. Denver Has A Large Student Population For Rental Homes. The college market presents a unique opportunity for landlords. There is a constant stream of people who will only rent unless they choose to stay after graduation. They may rent a while longer before feeling secure enough to buy a house.

Buying investment real estate in a college town is high risk. After all, when a college like Evergreen State scares off students or simply fails to attract them like many classics, private liberal arts schools that found themselves rendered redundant after brand-name schools opened their doors, there’s less demand for the rental of the house as a permanent residence.

You don’t have that problem in Denver since there are so many colleges in the Denver area. Schools range from the massive community college network to the 400-student Bel-Rea Institute of Animal Technology. American Sentinel University in Aurora is home to 2600 students, while the Metropolitan State College of Denver has more than 20,000 students.

The Colorado School of Healing Arts has only 100 students, while Colorado Christian University has more than 7000. Yes, the Denver real estate market for those who want to cater to students is diverse. You could invest in rental real estate near any of these colleges, knowing you could rent or sell to people that simply want to live in the area if student demand slacks off.

Denver Rent Prices Are Going Up

Dense urban areas are seeing weaker rental prices and drops in average rents, while some suburban sunbelt areas project small increases in rents. The main reason is working people relocating to less expensive and less dense areas. The August 2022 Rent Report from Apartment List reveals that Denver rents increased over the past month.

Denver rents have increased 0.8% over the past month, and are up sharply by 8.8% in comparison to the same time last year. Currently, median rents in Denver stand at $1,443 for a one-bedroom apartment and $1,785 for a two-bedroom. This is the sixth straight month that the city has seen rent increases after a decline in January. Denver's year-over-year rent growth lags the state average of 10.0%, as well as the national average of 12.3%.

Throughout the past year, rent increases have been occurring not just in the city of Denver, but across the entire metro. Of the largest 10 cities that we have data for in the Denver metro, all of them have seen prices rise. Here's a look at how rents compare across some of the largest cities in the metro.

  • Englewood has seen the fastest rent growth in the metro, with a year-over-year increase of 13.8%.
  • The median two-bedroom there costs $1,827, while a one-bedroom goes for $1,186.
  • Parker has the most expensive rents of the largest cities in the Denver metro, with a two-bedroom median of $2,235; rents increased 1.3% over the past month and 10.6% over the past year.
  • Aurora has the least expensive rents in the Denver metro, with a two-bedroom median of $1,695; rents grew 0.8% over the past month and 11.8% over the past year.

Compared to most other large cities across the country, Denver is less affordable for renters.

  • Rents increased sharply in other cities across the state, with Colorado as a whole logging rent growth of 10.0% over the past year.
  • For example, rents have grown by 12.8% in Fort Collins and 7.0% in Colorado Springs.
  • Denver's median two-bedroom rent of $1,785 is above the national average of $1,358.
  • Nationwide, rents have grown by 12.3% over the past year compared to the 8.8% rise in Denver.
  • While Denver's rents rose sharply over the past year, many cities nationwide also saw increases, including San Diego (+17.6%), Charlotte (+17.2%), and Austin (+14.6%).
  • Renters will generally find more expensive prices in Denver than most other large cities.
  • For example, Charlotte has a median 2BR rent of $1,496.

The “Zumper Denver Metro Area Report” analyzed active listings last month across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Colorado one bedroom median rent was $1,504 last month. Golden ranked as the most expensive cities with one bedrooms priced at $1,920 whereas Laramie was the most affordable city with one bedrooms priced at $800.

These cities look good for rental property investment this year as rents are growing over there.

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

  • Golden had the fastest growing rent, up 27.2% since this time last year.
  • Loveland saw rent climb 25%, making it second.
  • Boulder ranked as third with rent increasing 22.7%.

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

  • Laramie had the largest monthly growth rate, up 6.7%.
  • Fort Collins rent climbed 3.5% last month, making it the second fastest growing.
  • Castle Rock was third with rent increasing 3.4%.

Overall Rent Prices in Denver Metro Area:

The average rent price for a one-bedroom apartment in the Denver Metro Area is approximately $1,600 per month. For a two-bedroom apartment, the average rent price is around $2,100 per month. However, rent prices can vary significantly based on location, apartment size, and amenities.

Rent Prices by Neighborhood:

The rent prices in Denver Metro Area vary significantly depending on the neighborhood. Some of the most expensive neighborhoods in the area include Cherry Creek, Capitol Hill, and LoDo, where the average rent for a one-bedroom apartment ranges from $2,000 to $2,500 per month. On the other hand, neighborhoods such as Montbello, Gateway-Green Valley Ranch, and Aurora offer more affordable rent options, with the average rent for a one-bedroom apartment ranging from $1,100 to $1,400 per month.

Rent Prices by Apartment Type:

The type of apartment also affects the rent prices in the Denver Metro Area. Luxury apartments typically come with more amenities, such as swimming pools, fitness centers, and 24-hour concierge services. As a result, the average rent for a luxury one-bedroom apartment is approximately $2,500 per month. On the other hand, standard apartments with fewer amenities are more affordable, with an average rent for a one-bedroom apartment ranging from $1,200 to $1,500 per month.

Rent Prices by Season:

Rent prices in Denver Metro Area can fluctuate depending on the season. Summer months tend to be more expensive due to high demand, with rent prices increasing by up to 10% compared to the winter months. The demand for rental properties in Denver also spikes during May and June, as many college graduates move to the area for job opportunities.

In summary, rent prices in the Denver Metro Area are relatively high, with significant variation depending on the neighborhood, apartment type, and season. Renters looking for more affordable options may consider neighborhoods such as Montbello, Gateway-Green Valley Ranch, and Aurora. However, renters should be aware that the rental market in Denver can be competitive, and prices can change quickly, making it essential to stay informed and plan accordingly.

Denver rent prices
Source: Zumper

Denver Is Relatively Landlord-Friendly

Colorado is relatively landlord-friendly; compare it to the West coast, and it is a landlord’s dream. You don’t have to give tenants notice that you’re entering a property. You can quickly begin evictions if they haven’t paid the rent. That protects your investment in the Denver housing market. There’s no limit on late fees.

There are no state laws that prevent you from rekeying the locks after evicting them. If they violate the lease, give them formal notice. The tenants then have 72 hours to correct the issue or move out. If they don’t comply with notices, then you can go to court. If the court agrees with you, the sheriff gives the tenants 48 hours to move out before forcing them out.

Denver's Limited Room to Grow Keeps Housing Supply Tight

Many of the fastest-growing markets in the US are along the Front Range, a part of the Southern Rocky Mountains. While there are houses in the hills, it is a lot harder to build on the mountainous landscape than on flat plains. In Denver’s case, the massive national forests and Rocky Mountain Park to the west of Denver and its suburbs prevent the expansion of the Denver housing market in that direction. This keeps home prices higher than they’d be in places like Dallas.

The residential median home price in Denver hovers around $530K. That’s a steal for the migrants from California, but the sheer numbers of them coming in is pricing locals out of the housing market. The median monthly rent here – and that includes one-bedroom apartments – is around $1100 a month. Note that you could get much more for a spacious single-family home for rent or a large condo. With a 3 bedroom detached single-family home, you could receive well over $2000 per month in rent. You’ll find strong ROI numbers for the Denver real estate market.

Denver's Quality of Life

We can joke about the people who moved to Colorado decades ago, inspired by the movie “Rocky Mountain High”. We’re not going to joke about the overhyped medical marijuana industry there today. U.S. News & World Report published its list of the “150 Best Places to Live in the U.S.,” and four of the top five cities are right here in Colorado: Boulder (1), Denver (2), Colorado Springs (4), and Fort Collins (5). Denver was the second-best city to live on that list.

The area was a little lower in value than many like, but it ranked high on jobs, quality of life, and desirability. It is a beautiful city to live near the mountains – located on the western edge of the exquisitely beautiful High Plains. It is exactly one mile high above sea level and has the largest city park system in the nation, with 14,000 acres of mountain parks and 2,500 acres of natural areas.

That isn’t enough on its own to draw huge numbers of people to the Denver real estate market, but it is a factor. It has become the 19th most populous city in the nation. The metro area population of Denver (as of 2020) is 2,827,000, a 1.33% increase from 2019 (Macrotrends.net).

Denver was ranked as a Beta world city by the Globalization and World Cities Research Network. It has been one of the fastest-growing major cities in the United States, and real estate investments provide a direct way to participate in the strong growth of these economies. The strength of the overall economy significantly impacts the real estate market.

Denver's Strong Economy & Jobs Boost Its Housing Market

Job growth directly affects the real estate market. Demand for all types of real estate increases with the number of local jobs, as during periods of economic development or boom. Jobs are a major reason why people move to Denver in the first place. Denver’s unemployment rate has been well below the national average for years.

The BLS reported that the unemployment rate for Denver rose 0.1 percentage points in September 2022 to 3.3%. For the same month, the metro unemployment rate was 0.1 percentage points lower than the Colorado rate. The unemployment rate in Denver peaked in May 2020 at 12.6% and is now 9.3 percentage points lower. From a post-peak low of 3.2% in August 2022, the unemployment rate has now grown by 0.1 percentage points

Forbes ranked Denver as the number one Best Place for Business and Careers in 2015. Additionally, the magazine placed Denver 16th for employment growth and 20th for education. When one considers the huge oil and government sectors, as well as the rapidly expanding aerospace and technology businesses, it's no surprise that Denver is seeing such a big job boom.

The National Renewable Energy Laboratory contracts for research and development while companies such as Halliburton profit from a profitable oil play. Aerospace and technology positions are available at Ball Aerospace, Raytheon, and Lockheed-Martin, whilst software engineers are in demand at Rocket Software, StorageTek, and Sun Microsystems.

That explains why Denver is one of the top cities for in-migration, attracting people from all over the state as well as the country. Due to its proximity to the mineral-rich Rocky Mountains, Denver has long been a home for mining and energy companies such as Halliburton, Smith International, Newmont Mining, and Noble Energy. The top 25 employers in Metro Denver include government and municipal organizations, and corporations.

Denver Technological Center, better known as The Denver Tech Center or DTC, is a business and economic trading center located in Colorado in the southeastern portion of the Denver Metropolitan Area, within portions of the cities of Denver and Greenwood Village. It is home to several major businesses and corporations.

The U.S. Government is the largest employer in Metro Denver. The Department of the Interior includes such agencies as the Bureau of Land Management, Office of Surface Mining and Reclamation, and Bureau of Reclamation, and all have offices in or near the Denver Metro area. Another top employer in the Denver Metro Area is the State of Colorado.

It employs nearly 30,000 people in the Denver Metro area. As the capital and largest city in the state, Denver hosts the State of Colorado in multiple locations. Centura Health is one of the top 25 employers in the metro Denver area. Its massive healthcare network includes 15 hospitals, eight affiliate hospitals, health neighborhoods, health at home, urgent care centers, emergency centers, mountain clinics, 100-plus physician practices, clinics, and Flight for Life Colorado.

Denver is well known for its proximity to the Rockies. Other attractions in the area include but are not limited to the Denver Zoo and the Denver Botanic Gardens. Many of those 30 million tourists would love to have rented a house or apartment for their visit instead of a hotel. Then there’s the business traveler. Denver hosts around 80 conventions a year, too.

Whether someone is staying for a week for a convention or working a contract job in the tourism industry, this drives demand for short-term rentals that can be incredibly profitable. Renting on sites like Airbnb is legal if you have a business license, though around half of the Airbnb rentals are thought to be violating that rule. Denver is particularly progressive in allowing people to rent out their homes and apartments on Airbnb, though landlords may not agree with it.

Known Areas of Redevelopment

You don’t want to invest in the Denver housing market and end up losing money because the neighborhood is going downhill. Conversely, areas slated for redevelopment will almost certainly go up. And Denver has known and planned for areas of redevelopment. Downtown Denver saw multiple infill projects downtown ten years ago. Redevelopment is planned around Elitch Gardens today.

Key trade point for the country – Denver is home to several large corporations in the central United States. Denver South is home to 7 Fortune 500 companies. Denver was named 6th on Forbes Magazine’s “Best Places for Business and Careers.” Home for mining and energy companies such as Halliburton, Smith International, Newmont Mining, and Noble Energy.

Denver's Demographic Momentum

At first glance, the average age of 36 for residents versus 40 for the national average doesn’t sound too promising. However, this long-established city has already been noted as a great place to retire. That pulls the average age up. The coolness factor and job market attract equal numbers of young adults. That is why Millennials make up about 22% of Denver’s population. And given the job market and quality of life, they’ll probably stay here to raise families, generating more demand for the Denver housing market.

Generation X made that decision, too, which is why roughly a quarter of residents are under the age of 20. Additions to the local labor force tend to drive rents and prices up on properties in the vicinity and result in the local construction of homes and apartments. That will propel the Denver real estate market for decades to come.

Denver Colorado Real Estate Investment Markets

Investing in Denver's real estate can be a worthy investment due to a steady rate of appreciation. There are many reasons why the Denver real estate market is going strong today and is certain to remain strong for years to come. You cannot afford to miss out on this growing and appreciating real estate market. Good cash flow from Denver investment properties 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 Denver real estate investment opportunity would be key to your success. Even as Denver home prices have reached new heights, the market remains attractive to residential real estate investors in the $300,000 to $399,000 price range. As they continue to compete for potential investment properties at the lower end of the market, the challenges for first-time homebuyers will remain.

The homebuyers won’t be able to outbid real estate investors and would end up renting. The high prices combined with the lack of higher gains have slowed down fixing and flipping investment properties in Denver. The best investment is now looking for a rental property that will generate good cash flow. Your best tenants would be the retirees who intend to relocate to Denver and want to purchase property to rent out. The three most important factors when buying real estate anywhere are location, location, and location.

The location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Denver investment property and you should be able to flip it for a lump sum profit. The neighborhoods in Denver 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.

Some of the popular neighborhoods for buying a house or an investment property in Denver are Jefferson Park, Berkeley, Park Hill, Cheesman Park, Congress Park, Hilltop, Sunnyside, Capitol Hill, Highland, Platte Park, Stapleton, Reunion, Cherry Creek, Aspen, and Washington Park.

Denver housing prices are not only among the most expensive in Colorado but they are also some of the most expensive in all of the United States. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplex and triplex in Class A neighborhoods. As with any real estate purchase, act wisely. Evaluate the specifics of the Denver housing market at the time you intend to purchase. Hiring a local property management company can help in finding tenants for your investment property in Denver.

The inventory is low, but opportunities are there. According to Realtor.com, there are 69 neighborhoods in Denver, where properties are available for sale. If you think of investing in Denver, you have decided on a long-term investment property. Here are the ten neighborhoods in Denver having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

  1. Victory Crossing
  2. Stapleton
  3. Stapleton South
  4. Stapleton East
  5. Stapleton North
  6. Stapleton Southeast
  7. CBD
  8. Ballpark
  9. City Center
  10. W 14th Ave / Quitman St

Colorado Springs is another sizzling hot market for real estate investment in 2020. The Colorado Springs real estate market contains several large populations of renters, many practical reasons for people to move here from the surrounding area and across the country, and long-term factors that will drive growth for years to come. Forget the Mile High City and invest in the Colorado Springs real estate market.

Aurora is a fairly large city on the east side of Denver. Its proximity to Denver has long kept it in the realm of the Denver suburb. The Aurora real estate market 2020 is seeing rising prices & rents. Aurora, Colorado is more than a growing suburb. It is a large, thriving city in its own right. It has a bright future, and it is poised for rapid appreciation and increasing rental rates. This is a good time to invest in the Aurora real estate market.

Boulder real estate market is another good place to buy investment properties. Boulder is located in northern Colorado. The Boulder metro area is becoming a high-tech hub, driving up rental rates and property values. Others are lured here by the promise of high-paying jobs or attending school somewhere they can intern at Big Tech firms without paying a fortune. Boulder’s economy is stabilized by the presence of government research institutes and the proximity to Denver’s buzzing economy.

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 Denver, Colorado.

Consult with one of the investment counselors who can help build you a custom portfolio of Denver turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Denver. Not just limited to Denver or Colorado 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 Denver turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

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

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

REFERENCES

Market Data, Reports & Forecasts
https://www.recolorado.com
https://www.dmarealtors.com
https://www.zillow.com/denver-co/home-values
https://www.littlebighomes.com/real-estate-denver.html
https://www.recolorado.com/market-statistics/market-watch.aspx
https://www.realtor.com/realestateandhomes-search/Denver_CO/overview
https://www.zumper.com/blog/rental-price-data/
https://www.zumper.com/blog/denver-metro-report/

Best Neighborhoods for real estate
https://www.neighborhoodscout.com/co/denver/real-estate

Foreclosures
https://www.realtytrac.com/statsandtrends/co/denver-county/denver

Quality of life, Unemployment, Rent, Tourism
https://realestate.usnews.com/places/colorado/denver
https://denverrelocationguide.com/largest-employers-in-denver
https://www.mashvisor.com/blog/why-where-invest-denver-real-estate
https://www.denverpost.com/2014/12/16/denver-experiencing-its-best-convention-year-ever

Landlord friendly
http://www.landlordstation.com/blog/top-landlord-friendly-states
https://www.avail.co/education/laws/colorado-landlord-tenant-law

Short term rentals
https://crej.com/news/airbnb-31-billion-gorilla-room
https://businessden.com/2018/08/27/50-of-airbnb-landlords-ignore-denver-rules-taxes-in-booming-100m-industry

Growing rental market
https://www.5280.com/2017/04/everything-know-denvers-real-estate-market-wrong
https://www.forbes.com/sites/ingowinzer/2016/07/31/should-you-invest-in-denver-area-real-estate/#16f926277fc5

Redevelopment
https://denverinfill.com/home-old.htm
https://www.denverpost.com/2018/03/06/river-mile-denver-elitch-gardens-redevelopment/

Colleges
https://www.collegesimply.com/colleges-near/colorado/denver

Minneapolis Housing Market: Prices, Trends, Forecast 2023

by

This article has been updated to reflect recent changes in the Minneapolis real estate market due to the coronavirus pandemic. We'll be discussing the housing market trends for the Twin Cities Metro Area in 2023. Our focus for real estate investment would be the Minneapolis housing market—the entire twin city metro area—and we shall also share the top reasons to invest in this region.

Minneapolis–Saint Paul is a major metropolitan area and is commonly known as the Twin Cities after its two largest cities—Minneapolis and Saint Paul. They’re separated by the Mississippi River. The waterfront is home to many cultural landmarks and coveted waterfront real estate.

ALSO READ: Minnesota Housing Market: Prices & Forecast

Minneapolis–Saint Paul Housing Market Trends (Describes Twin Cities)

Here are the most recent housing statistics in Minneapolis–St. Paul–Bloomington MN-WI metropolitan area. The area is commonly known as the Twin Cities after its two largest cities, Minneapolis, the most populous city in the state, and its neighbor to the east, Saint Paul, the state capital.

New Listings and Closed Sales:

According to a report from Minneapolis Area REALTORS® and Saint Paul Area Association of REALTORS®, Iin April 2023, the number of new listings in the Minneapolis–Saint Paul area decreased by 27.9% compared to the previous year, with 5,170 new listings recorded. Over the rolling 12 months, new listings declined by 15.0% to reach a total of 63,150. Similarly, closed sales experienced a significant decrease of 32.2% in April 2023, with 3,263 closed sales. The rolling 12-month closed sales figure dropped by 23.1% to 49,966.

Median and Average Sales Prices:

The median sales price in April 2023 was $367,500, showing a slight decrease of 0.7% compared to the previous year. However, over the rolling 12 months, the median sales price witnessed a growth of 5.5%, reaching $365,000. On the other hand, the average sales price in April 2023 was $426,579, down by 1.0% from the previous year. Over the rolling 12 months, the average sales price increased by 6.2% to $427,079.

Price Per Square Foot and Percent of Original List Price Received:

The price per square foot for homes in the Minneapolis–Saint Paul area decreased by 1.7% in April 2023, amounting to $207. However, over the rolling 12 months, the price per square foot saw a growth of 4.6%, reaching $203. The percent of original list price received also experienced a decline of 3.6% in April 2023, with homes selling at an average of 100.1% of their original list price. Over the rolling 12 months, this metric decreased by 2.0% to 100.0%.

Days on Market and Inventory:

The average number of days on the market until sale increased significantly in April 2023, with homes taking an average of 45 days to sell, representing a 60.7% increase compared to the previous year. However, over the rolling 12 months, the average days on market showed a more modest increase of 29.6%, with homes selling in approximately 35 days. The inventory of homes for sale decreased slightly by 4.5% in April 2023, with 6,155 homes available.

These trends provide valuable insights for both buyers and sellers, highlighting the current conditions of the market and allowing for informed decision-making. The Minneapolis–Saint Paul housing market in April 2023 exhibited a decline in new listings and closed sales compared to the previous year.

However, median and average sales prices remained relatively stable, with a slight decrease and increase, respectively. Price per square foot experienced a slight decrease, while the percent of original list price received also declined. Days on market increased significantly, indicating a longer selling process, while the inventory of homes for sale decreased slightly.

Minneapolis Housing Market Trends (Describes City's Housing Stats)

Below is the latest report on the Minneapolis Housing Market which compares the Minneapolis housing metrics from April 2022 with April 2023.

  • In April 2023, the number of new listings in Minneapolis decreased by 33.4 percent.
  • The number of days on the market increased by 29.5% to 57 days.
  • Price Per Square Foot decreased 4.5% to $239.
  • The median sales price decreased 2.5% to $326,500.
  • The average sales price decreased 1.1% to $401,351.
  • Months Supply of Inventory increased by 20% to 1.8 months.

Saint Paul Housing Market Trends (Describes City's Housing Stats)

Below is the latest report on the “St. Paul Housing Market” released by the Minneapolis Area REALTORS®. The report compares the St. Paul housing metrics from April 2022 with April 2023.

  • In April 2023, the number of new listings in St. Paul decreased by 35.4 percent.
  • The number of days on the market increased by 53.3% to 46 days.
  • Price Per Square Foot decreased 4.3% to $2025.
  • The median sales price decreased 2.2% to $284,000.
  • The average sales price decreased 2.2% to $328,296.
  • Months Supply of Inventory decreased by 8.3% to 1.1 months.

Minneapolis Metro Area Housing Market Forecast 2023-2024

The Minneapolis metro area, which includes Minneapolis-St. Paul-Bloomington, is a vibrant and dynamic housing market. In this blog post, we will delve into the current state of the market and provide a forecast for the upcoming year. Understanding the trends and projections can be valuable for both buyers and sellers looking to make informed decisions. Let's explore the key statistics and forecast for the Minneapolis metro area housing market given by Zillow.

Average Home Values and Value Change:

As of April 30, 2023, the average home value in the Minneapolis-St. Paul-Bloomington area stands at $366,327. Over the past year, there has been a slight decrease of 0.4% in home values. This indicates a relatively stable market in terms of home prices.

Market Forecast:

Looking ahead, the market forecast for the Minneapolis metro area shows a positive outlook. The forecast predicts a 1.9% increase in home values over the next year. This suggests a potential recovery and growth in the housing market, which can be encouraging for homeowners and sellers.

Median Sale to List Ratio:

The median sale to list ratio, as of March 31, 2023, is reported as 0.999. This indicates that, on average, homes are selling very close to their list prices. Buyers and sellers can use this information as a reference point for pricing negotiations and setting realistic expectations.

Percent of Sales Over and Under List Price:

In March 2023, approximately 33.4% of sales in the Minneapolis metro area were made over the list price. This suggests a competitive market environment where buyers may need to make competitive offers to secure a property. On the other hand, around 45.6% of sales were made under the list price, indicating opportunities for buyers to find homes below the asking price.

Median Days to Pending:

The median number of days it takes for a property to go pending in the Minneapolis metro area is reported as 14, as of April 30, 2023. This indicates a relatively fast-paced market where homes are going under contract within a short time frame. Buyers should be prepared to act quickly when they find a property they are interested in.

Summary:

The Minneapolis metro area housing market shows promising signs for the coming year. Despite a slight decrease in average home values over the past year, the market forecast predicts a positive growth trend. With homes selling close to their list prices and a competitive environment, buyers and sellers alike should be prepared for a dynamic market. The median days to pending reflects the speed at which properties are being sold, emphasizing the need for buyers to act promptly.

Minneapolis Housing Market Forecast
Source: Zillow

Minneapolis Real Estate Investment: Is It A Good Place For Investment?

Minneapolis, located in the state of Minnesota, is a major economic hub in the Midwest region of the United States. The city has a diverse economy with major industries including healthcare, finance, and manufacturing. With a population of over 400,000 and a metro population of over 3.6 million, Minneapolis has a strong demand for housing. If you are considering investing in real estate, here are 5 reasons why Minneapolis might be a good place to invest:

  • Strong Rental Property Market: The rental property market in Minneapolis is strong, with high occupancy rates and steady rent growth. The city has a large number of renters, including students from the University of Minnesota, young professionals, and families. Additionally, the city has a strong job market, which supports a steady demand for rental properties.
  • Diverse Economy: Minneapolis has a diverse economy that is not dependent on any one industry. The city is home to several Fortune 500 companies, including Target, Best Buy, and General Mills. The city's strong economy supports a steady demand for housing.
  • Affordable Real Estate Prices: Compared to other major cities in the United States, Minneapolis has relatively affordable real estate prices. This makes it an attractive market for real estate investors looking to maximize their return on investment.
  • Strong Housing Market: Despite some recent fluctuations, Minneapolis has a strong housing market. According to Zillow, the median home value in Minneapolis is $290,000, up 0.5% from the previous year. Additionally, Minneapolis has a relatively low foreclosure rate, which indicates a stable market.
  • Growing Population: The population of Minneapolis has been growing steadily over the past decade, driven by both natural growth and migration. This growing population supports a steady demand for housing in the city.
  • Big Student Market: One of the factors that make Minneapolis a great place for real estate investment is the massive student market. With the presence of several major universities and colleges, including the University of Minnesota, Minneapolis Community and Technical College, and Augsburg University, there is a large population of students in the area. These students require housing, which presents an opportunity for real estate investors to invest in rental properties. Investing in rental properties in Minneapolis can be a lucrative business as the demand for student housing is usually high. Additionally, the student market in Minneapolis is not limited to traditional students. The city also has a large number of professionals and individuals pursuing advanced degrees who require housing. This diverse population provides real estate investors with a wide range of opportunities to invest in rental properties.
  • The Landlord-Friendliness of Minneapolis: Minneapolis is known for its pro-landlord laws and regulations, which provide a stable and predictable environment for property owners. This means that landlords have more control over their properties and can protect their investments more effectively. For example, the city has laws in place that allow landlords to evict tenants for non-payment of rent or other violations of the lease agreement. This can give landlords peace of mind knowing that they can take action if necessary to protect their property and rental income. Furthermore, the city has relatively low property taxes and a streamlined process for obtaining permits and licenses, making it easier for landlords to manage their properties. Additionally, the city's rental market is strong, with a high demand for rental properties due to the growing population and a large number of college students in the area. As a result, landlords in Minneapolis can expect to receive a steady stream of rental income, making it a desirable market for real estate investment.

Current Rental Statistics: As of May 2023, the average rent for a 1-bedroom apartment in Minneapolis, MN is $1,300. This is a 10% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Minneapolis decreased by -9% to $1,045. The average rent for a 1-bedroom apartment decreased by -3% to $1,300, and the average rent for a 2-bedroom apartment decreased by -1% to $1,900.

The Zumper Minneapolis Metro Area Report analyzed active listings last month across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Minnesota one bedroom median rent was $1,211 last month. Edina was the most expensive city with one bedrooms priced at $1,710 while Brooklyn Center was the most affordable city with one bedroom priced at $980.

The best place to buy rental property is about finding growing markets. Cities like Maplewood, St. Paul, and Roseville are good for investors looking to get started with rental property ownership at an affordable price. These cities look good for rental property investment this year as rents are growing over there. These trends provide a macro look at the growing rental demand.

Each real estate market has its own unique supply-demand dynamics with unique neighborhoods that present opportunities for investors. Here are the best areas to invest in a rental property in the Minneapolis Metro Area in 2022. Most of these places have the same things in common, including rising rents and increasing property values.

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

  • Edina had the fastest growing rent, up 25.7% since this time last year.
  • Bloomington rent grew 20.9%, making it second.
  • Plymouth was third with rent climbing 19.7%.

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

  • Rosewood had the largest monthly growth rate, up 5.9%.
  • Minneapolis was second with rent climbing 4.7%.
  • St. Louis Park saw rent increase 3.1% last month, making it third.
Minneapolis Rental Market Trends
Source: Zumper

 

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 Minneapolis and the Twin Cities region.

Consult with one of the investment counselors who can help build you a custom portfolio of Minneapolis turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Minneapolis. Not just limited to Minneapolis or the Twin Cities of Minnesota 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 Minneapolis turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability. Let us know other than the Twin Cities region which housing markets you consider best for real estate investing!

Contact Us

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

Sources:

  • https://www.mplsrealtor.com/
  • http://maar.stats.10kresearch.com/reports/lmu
  • https://www.mnrealtor.com/buyers-sellers/marketreports
  • https://www.zillow.com/Minneapolis-mn/home-values
  • https://www.realtor.com/realestateandhomes-search/Minneapolis_MN/overview
  • https://www.neighborhoodscout.com/mn/minneapolis/real-estate

Minnesota Housing Market: Prices, Trends, Forecast 2023

by

The Minnesota housing market experienced significant changes in April 2023. The decrease in new listings, pending sales, and closed sales indicate a shift in market dynamics. However, the minor decrease in the median sales price suggests relative stability in home prices.

Minnesota Housing Market

With an increased number of days on the market and an uptick in supply, buyers may have more options to consider. It's important for both buyers and sellers to stay informed about these market trends to make well-informed decisions. As the market continues to evolve, monitoring these key metrics will be essential for anyone involved in real estate transactions in the state.

Minnesota Housing Market Report April 2023

The Minnesota housing market experienced notable changes in April 2023 compared to the previous year. Let's dive into the key metrics and trends to gain insights into the current state of the market by analyzing the report released by the Minnesota Realtors®.

New Listings: Decrease in Inventory

In April 2023, the number of new listings decreased significantly by 27.0% compared to the same month in 2022. A total of 7,290 new listings entered the market, reflecting a decrease in available inventory. This reduction in new listings can impact buyers' options and contribute to a more competitive market environment.

Pending Sales: Decrease in Demand

The number of pending sales in April 2023 showed a decrease of 28.7% compared to the previous year. With 5,769 pending sales, the market experienced a decline in buyer demand. This decrease could be attributed to various factors, such as changes in market conditions or buyer preferences.

Closed Sales: Decrease in Transactions

The closed sales in April 2023 recorded a significant decline of 30.9% compared to the same period in 2022. The total closed sales stood at 4,522, indicating a decrease in real estate transactions. This decline may be influenced by the decrease in new listings and pending sales, as well as other factors impacting buyer and seller activity in the market.

Median Sales Price: Minor Decrease

The median sales price in April 2023 experienced a slight decrease of 1.5% compared to the previous year. The median sales price was $335,000, showing a small adjustment in prices. However, looking at the year-to-date figures, the median sales price increased by 0.3%, with a value of $320,000. This suggests relative stability in home prices over the course of the year.

Percent of Original List Price Received: Decrease in Negotiation Power

The percent of the original list price received by sellers decreased by 3.4% in April 2023. The market saw sellers receiving 99.3% of their original list price, indicating a slight decrease in negotiation power for sellers. This change may be influenced by market conditions and buyer preferences.

Days on Market Until Sale: Increased Timeframe

The average number of days on the market until sale increased by 36.7% in April 2023. Homes stayed on the market for an average of 41 days, compared to 30 days in the previous year. This increase suggests that homes are taking longer to sell, which could be attributed to factors such as market conditions, buyer demand, and pricing strategies.

Months Supply of Inventory: Increased Supply

The months supply of inventory increased from 1.3 to 1.7 in April 2023, indicating a 30.8% increase in available supply. This suggests that the market has shifted towards a more balanced state, with slightly more inventory available for buyers to choose from.

Minnesota Housing Market Forecast 2023-2024

The Minnesota housing market has shown steady growth and resilience in recent years. With an average home value of $320,657, representing a 1.2% increase over the past year, the market continues to be a favorable environment for homeowners and investors. Additionally, homes in Minnesota typically go pending within approximately 14 days, indicating a strong demand and competitive market.

Market Indicators

When looking at market indicators, several key metrics provide insights into the current state and future forecast of the Minnesota housing market.

Median Sale to List Ratio: As of March 31, 2023, the median sale to list ratio is 0.997, indicating that homes in Minnesota sell close to their listed price on average. This suggests a balanced market where sellers have some negotiating power.

Percent of Sales Over List Price: Approximately 31.4% of sales have been recorded as selling above the list price. This indicates a competitive market environment where buyers are willing to pay more to secure their desired properties.

Percent of Sales Under List Price: Around 48.3% of sales have been closed under the list price. This suggests that buyers still have opportunities for negotiation and potential bargains in the market.

Median Days to Pending: The median number of days from listing to pending sale is 14 days as of April 30, 2023. This signifies a relatively fast-paced market where homes are attracting buyer interest and going under contract swiftly.

Minnesota MSA Level Forecast

Looking at specific Metropolitan Statistical Areas (MSAs) within Minnesota, here are some forecasts by Zillow for selected regions.

Minneapolis, MN MSA: The forecast for this area indicates a growth rate of 0.3% by May 31, 2023, and July 31, 2023. By April 30, 2024, a more substantial growth rate of 2% is expected. This suggests a positive outlook for the Minneapolis housing market, with steady appreciation in property values.

Duluth, MN MSA: The forecast for Duluth predicts a growth rate of 0.4% by May 31, 2023, followed by a more significant increase of 1% by July 31, 2023. Looking ahead to April 30, 2024, the growth rate is projected to reach 4.5%. This forecast indicates a promising market for Duluth, with steady growth and potential investment opportunities.

Rochester, MN MSA: Rochester's forecast shows a growth rate of 0.7% by May 31, 2023, and further increases of 1.4% by July 31, 2023. By April 30, 2024, a growth rate of 3.8% is projected. This suggests a positive outlook for the Rochester housing market, with steady appreciation in property values.

St. Cloud, MN MSA: St. Cloud's forecast indicates a growth rate of 0.5% by May 31, 2023, followed by a slight increase of 0.7% by July 31, 2023. By April 30, 2024, the growth rate is projected to reach 3.6%. This forecast suggests a stable and growing market in St. Cloud.

It's important to note that these forecasts are based on current data and assumptions, and market conditions can change. Local factors, economic trends, and other influences can impact the accuracy of these forecasts.

Is Minnesota a Seller's Market or Buyer's Market?

Based on the available information, the Minnesota housing market in 2023 appears to lean towards a seller's market. Several factors contribute to this assessment:

  • Limited Inventory: The number of new listings in April 2023 has decreased by 27% compared to the previous year. This decrease in inventory creates a situation where there are fewer properties available for buyers to choose from, potentially giving sellers an advantage.
  • Low Days on Market: Homes in Minnesota are going pending within approximately 14 days, indicating a high demand and a quick turnover of properties. This suggests that buyers are actively competing for available homes, which typically benefits sellers.
  • Percent of Sales Over List Price: Around 31.4% of sales in Minnesota have closed above the list price. This suggests that buyers are willing to offer more than the asking price to secure their desired properties, further indicating a market favoring sellers.
  • Months Supply of Inventory: The months supply of inventory is at 1.7, indicating a relatively low inventory level. A supply of fewer than six months is generally considered a seller's market, as it indicates a scarcity of available properties.

While these indicators suggest a seller's market, it's essential to consider that market conditions can change over time. Factors such as economic shifts, changes in interest rates, and shifts in buyer demand can influence the market dynamics. Therefore, it is advisable to monitor market trends and consult with local real estate professionals for the most accurate and up-to-date information.

A key factor to consider when buying or selling a home is whether it's a seller's or buyer's market. In a seller's market, there are more buyers than available homes, which can drive up prices and lead to bidding wars. In a buyer's market, there are more homes for sale than buyers, which can lead to lower prices and more negotiating power for buyers.

Based on the report's findings, it appears that the Minnesota housing market is leaning toward a buyer's market in 2023. With the overall slight decline in home values and some regions experiencing a more significant decline, buyers may have more negotiating power and opportunities to find homes at lower prices.

However, it's worth noting that this is not necessarily the case for all regions in Minnesota. Some regions, such as Duluth, may still be a seller's market with home values projected to increase slightly.

Sources:

  • https://www.mnrealtor.com/buyers-sellers/marketreports
  • https://fred.stlouisfed.org/series/MNSTHPI#
  • https://www.zillow.com/mn/home-values/
  • https://www.neighborhoodscout.com/mn/real-estate
  • https://fred.stlouisfed.org/series/ACTLISCOUMN#

Cincinnati Housing Market: Prices, Trends, Forecast 2023

by

Cincinnati, the third-largest city in Ohio, is experiencing a housing market that has been on the rise in recent years. With a growing economy and affordable housing options, Cincinnati is attracting a lot of attention from buyers and investors. In this article, we will explore the current prices, trends, and forecast for the Cincinnati housing market in 2023.

Cincinnati Housing Market Trends for 2023

The Cincinnati housing market has been a topic of interest for both homebuyers and real estate professionals. To gain insights into the current state of the market, let's delve into the April 2023 housing market report released by the Cincinnati Area Board of REALTORS®. The Cincinnati housing market report reveals mixed trends and changes compared to the same period of the prior year.

While the median sold price and active inventory showed positive signs, there were decreases in units sold, total sold volume, and new listings. Understanding these market trends can help you make informed decisions in the Cincinnati housing market.

Median Sold Price

The median sold price in April 2023 showed a significant increase compared to the same month of the prior year. The median sold price rose by 9.1%, reaching $279,900. This upward trend is promising for homeowners and indicates a healthy appreciation in property values. Looking at the year-to-date (YTD) figures, the median sold price stood at $259,900, marking a 5.4% increase. In contrast, the prior YTD median sold price was $246,500, reflecting a growth of 5.4%.

Units Sold

The number of units sold in April 2023 experienced a decline when compared to the same month of the previous year. The market saw a decrease of 28.5%, with a total of 1,379 units sold. Examining the YTD data, the units sold amounted to 4,860, indicating a decrease of 24.5%. The prior YTD figures stood at 6,433 units sold, highlighting a notable difference.

Total Sold Volume

The total sold volume in April 2023 witnessed a significant drop when compared to the previous year. The total sold volume decreased by 23.3%, reaching $455.87 million. In terms of the YTD numbers, the total sold volume stood at $1.52 billion, reflecting a decrease of 19.9%. The prior YTD total sold volume amounted to $1.9 billion, showcasing a substantial decline.

Active Inventory

The active inventory, which represents the number of available properties for sale, saw a slight increase of 1.1%. This means there were 1,287 properties actively listed in the Cincinnati housing market in April 2023. This increase in inventory provides more options for potential homebuyers and indicates a healthy level of market activity.

Median Days on Market

The median days on the market is an essential metric that reflects the average time it takes for a property to sell. In April 2023, the median days on the market stood at 50%, indicating a relatively fast-paced market. Homes were selling quicker compared to the prior year, providing a favorable environment for sellers.

New Listings

The number of new listings in April 2023 experienced a decline of 27.3% compared to the previous year. A total of 1,778 new listings entered the market during this period. This decrease in new listings may contribute to the reduction in overall inventory and impact the dynamics of the housing market.

Cincinnati Real Estate Market Forecast 2023-2024

The Cincinnati real estate market has shown positive growth and stability in recent years. With an average home value of $229,239, representing a 2.6% increase over the past year, the market has proven to be a favorable environment for homeowners and investors alike. Additionally, homes in Cincinnati tend to go pending within approximately four days, indicating a high demand and a competitive market.

When examining the forecast for the Cincinnati real estate market, it's important to consider various factors and projections. Based on the Cincinnati MSA (Metropolitan Statistical Area) level forecast, the market is expected to continue its upward trajectory. The forecast predicts a growth rate of 0.6% by May 31, 2023, followed by a further increase of 1.2% by July 31, 2023. Looking ahead to April 30, 2024, the forecast indicates a significant growth rate of 5.1%.

These forecasts suggest that the Cincinnati real estate market will maintain its positive momentum, providing opportunities for homeowners and investors to see appreciation in property values. The projected growth rates indicate a healthy market with increasing demand and potential for long-term investment gains.

In addition to the forecasted growth, other market indicators are worth considering. The median sale-to-list ratio of 0.995 as of March 31, 2023, showcases a balanced market where homes are generally selling close to their listed price. Furthermore, approximately 33.6% of sales have been recorded as exceeding the list price, indicating a competitive environment where buyers are willing to pay more for desirable properties. On the other hand, about 49.0% of sales have been under the list price, suggesting that buyers still have some opportunities for negotiation.

Lastly, the median days to pending, which stood at four days as of April 30, 2023, highlights the fast-paced nature of the Cincinnati real estate market. Homes are selling relatively quickly, emphasizing the importance of acting promptly when interested in a property.

Cincinnati Real Estate Market
Credits: Zillow

Cincinnati Real Estate Investment Overview

Cincinnati is a bustling city located in the southwest corner of Ohio, known for its strong economy, diverse culture, and affordable cost of living. The Cincinnati real estate market has seen steady growth in recent years, with home values increasing by 4.6% over the past year, according to Zillow.

Despite a slight decrease in home sales in February 2023 compared to the previous year, the market is expected to remain stable and strong throughout 2023 and 2024. With median days on the market of just 9 days and a high percentage of sales under list price, Cincinnati is a seller's market, indicating that it may be an advantageous time for sellers to list their properties.

Investors interested in the Cincinnati real estate market can benefit from the area's diverse range of neighborhoods, from the upscale and trendy Over-the-Rhine district to the more affordable suburban areas like Paddock Hills and Winton Place. The city's economy is thriving, with a strong job market and low unemployment rates, making it an attractive option for those seeking to relocate or invest.

Here are top reasons why Cincinnati's MSA real estate market may be a smart investment:

Strong Economic Growth:

Cincinnati's economy has been growing steadily, with a low unemployment rate of 3.6% and a diverse range of industries, including healthcare, education, finance, and manufacturing. According to the Bureau of Economic Analysis, Cincinnati's gross domestic product (GDP) has grown by 6.5% from 2016 to 2021, outpacing the national average of 4.6%. This economic growth has led to a strong demand for housing, making Cincinnati an attractive market for real estate investors.

Affordable Housing Market:

Cincinnati's housing market is relatively affordable compared to other major metropolitan areas in the United States. According to Zillow, the median home value in Cincinnati is $215,066, which is below the national median value. This affordability, combined with the city's strong economy and low cost of living, makes it an attractive option for young professionals and families.

Strong Rental Market:

Cincinnati has a strong rental market, with a vacancy rate of only 3.6% and average rent prices of $1,128 per month, according to RentCafe. Additionally, Cincinnati is home to several major universities, including the University of Cincinnati and Xavier University, which provide a consistent stream of rental demand from students and faculty.

Growing Population:

Cincinnati's population has been growing steadily over the past decade, with a population of over 2.1 million people in the metropolitan statistical area (MSA) in 2021. According to the U.S. Census Bureau, the population of the Cincinnati MSA is projected to increase by 3.1% from 2020 to 2030. This growing population, combined with a strong economy and affordable housing market, makes Cincinnati a prime location for real estate investment.

Infrastructure and Transportation:

Cincinnati has a well-developed transportation infrastructure, including a major airport, several major highways, and a robust public transportation system. Additionally, the city has invested heavily in infrastructure projects, such as the Cincinnati Bell Connector streetcar, which connects several neighborhoods in the city. This infrastructure and transportation network make it easier for residents to commute and access amenities, which further increases the demand for real estate in the area.

Stable Real Estate Market:

Cincinnati's real estate market has remained stable over the past decade, with steady appreciation rates and low volatility. According to Zillow, the Cincinnati housing market has appreciated by 4.6% over the past year, which is in line with the national average. This stability makes Cincinnati an attractive option for real estate investors who are looking for a steady return on their investment.

Growing Tech Industry:

Cincinnati's tech industry has been growing rapidly in recent years, with several tech startups and established companies calling the city home. According to CBRE's Tech Talent Report, Cincinnati ranks 27th out of 50 U.S. cities for tech talent, with a 13.1% growth rate in tech jobs from 2015 to 2020. This growing tech industry provides a stable source of employment and further drives the demand for housing in the city.

In conclusion, Cincinnati's strong economy, the affordable housing market, strong rental market, growing population, infrastructure and transportation network, stable real estate market, and growing tech industry make it an attractive location for real estate investors. Whether you're looking to buy and hold rental properties or flip houses for a quick profit, Cincinnati's real estate market offers plenty of opportunities for savvy investors.

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 Cincinnati.

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

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

There are many other markets in the state of Ohio for real estate investing. Columbus is one of them. The Columbus real estate market is a bright spot in a declining region. It mixes smart redevelopment, quality of life, and growth to create a stable, slow-growing market that will be thriving well into the foreseeable future. If you’re looking to buy Columbus investment properties, it makes sense to do so when inventory levels are relatively high, like in the current phase of the pandemic. The surplus of available opportunities can lead to softer negotiations with sellers. Columbus has a lower cost of living than the national average.

Cleveland is another good market to invest in real estate. Cleveland is a notable exception to the decline of the Rust Belt cities. It has managed to reinvent itself, shifting from classic manufacturing to biotech and medicine. In the process, it has maintained its population and has strong potential for growth both economically and demographically.

Let us know which real estate markets 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

  • https://www.cabr.org/category/homesales
  • https://www.zillow.com/Cincinnati-oh/home-values
  • https://www.neighborhoodscout.com/oh/cincinnati/real-estate
  • https://www.littlebighomes.com/real-estate-cincinnati.html
  • https://www.realtor.com/realestateandhomes-search/Cincinnati_OH/overview

Blog Posts

Contact

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

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