Norada Real Estate Investments

Where Can I Buy a House for 300k in California? (2023)

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Where Can I Buy a House for 300k in California?

If you're looking for a house for 300k in California, you might be wondering where to start your search. California is a huge and diverse state, with different regions offering different lifestyles, climates, and amenities. Whether you're looking for a cozy cabin in the mountains, a beachfront bungalow, or a suburban ranch, there's a place for you in the Golden State.

In this blog post, we'll explore some of the best places to buy a house for 300k in California, based on data from Zillow and other sources. We'll also give you some tips on how to find your dream home and make a smart offer. Let's get started!

Best Places to Buy a House for 300k in California

According to Zillow, the median home value in California as of September 2023 was $747,352, which is well above the national average in the U.S. However, that doesn't mean you can't find affordable homes in some areas of the state. Here are some of the best places to buy a house for 300k in California, along with their median home values as of September 2023:

Fresno:

Fresno is the fifth-largest city in California and the largest inland city in the state. It's located in the San Joaquin Valley, which is known for its agricultural production and diversity. Fresno offers a mix of urban and rural living, with plenty of cultural attractions, outdoor recreation, and educational opportunities. You can find homes for sale under 300k in Fresno on Zillow.

Moreno Valley:

Moreno Valley is a fast-growing city in Riverside County, about an hour east of Los Angeles. It's surrounded by mountains and hills, giving it a scenic and natural feel. Moreno Valley has a variety of housing options, from single-family homes to condos to mobile homes. You can find homes for sale under 300k in Moreno Valley on Zillow.

Janesville:

Janesville is a small town in Lassen County, about an hour north of Reno, Nevada. It's located in the Honey Lake Valley, which offers stunning views of the Sierra Nevada mountains and abundant wildlife. Janesville is a peaceful and quiet community, with a low cost of living and a high quality of life. You can find homes for sale under 300k in Janesville on Zillow.

Taft:

Taft is a historic oil town in Kern County, about an hour west of Bakersfield. It's known for its rich heritage and its proximity to the Carrizo Plain National Monument, which is home to diverse flora and fauna and spectacular wildflower displays. Taft has a small-town charm and a friendly atmosphere, with affordable housing and low crime rates. You can find homes for sale under 300k in Taft on Zillow.

Sacramento:

Sacramento is the capital city of California and the seat of Sacramento County. It's located at the confluence of the Sacramento and American rivers, which provide ample opportunities for boating, fishing, and kayaking. Sacramento is also known for its cultural diversity, historic landmarks, and vibrant nightlife. You can find homes for sale under 300k in Sacramento on Zillow.

Tips on How to Find Your Dream Home and Make a Smart Offer

Finding a house for 300k in California might not be easy, but it's not impossible either. Here are some tips on how to find your dream home and make a smart offer:

  • Do your research: Before you start looking for homes, do some research on the areas you're interested in. Check out the local market trends, neighborhood amenities, school ratings, crime statistics, and commute times.
  • Work with a local agent: A local real estate agent can help you navigate the complex and competitive California housing market. They can provide you with insider information, access to off-market listings, and professional guidance throughout the process. They can also help you negotiate the best price and terms for your offer.
  • Be flexible: When you're looking for a house for 300k in California, you might have to compromise on some aspects of your ideal home. For example, you might have to settle for a smaller size, an older style, or a less desirable location. However, don't compromise on your must-haves or your budget. Be flexible but realistic about what you can afford and what you need.
  • Act fast: The California housing market is hot right now, with high demand and low inventory. That means homes sell quickly, often with multiple offers and bidding wars. If you find a home you love, don't hesitate to make an offer. Be prepared to act fast and make a strong and attractive offer that stands out from the competition.

Buying a house for 300k in California might seem like a daunting task, but it's not impossible. There are still plenty of beautiful and affordable places to buy a home in the Golden State, if you know where to look and how to act. With some research, some help from a local agent, and some flexibility, you can find your dream home and make a smart offer. Good luck and happy house hunting!

Las Vegas Housing Market: Prices, Trends, Forecast 2023-2024

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Las Vegas Housing Market

The Las Vegas housing market has been through ups and downs over the past few years, with the pandemic having a significant impact on the market. The market is facing a mix of opportunities and challenges for both buyers and sellers. 

Current Las Vegas Housing Market Trends – October 2023

How is the housing market doing? According to the Southern Nevada report published by Summerlincommunities.com (Data by Las Vegas Realtors), in October 2023, there were 1,699 single-family houses that sold in October, marking a 6.7% decrease from September and a 1.5% decline from October 2022.

The median sales price of previously owned single-family homes experienced a slight dip, going from $450,000 in September to $449,000 in October, reflecting a 0.2% decrease from the prior month but still a 2% increase from the previous year. In October 2022, the median price was at $440,000, showcasing a positive trend over the years.

  • October 2022 median price: $440,000
  • October 2021 median price: $410,000
  • October 2020 median price: $340,200

Market Update – Luxury Market

The luxury market saw 96 homes sold in October for $1 million and over, compared to 99 homes in September, indicating a 3-home decrease. The median sales price in the Luxury Market for October experienced a notable decrease, dropping to $1,300,000, whereas in September, it was $1,445,000, reflecting a $145,000 decrease in the median sales price.

Housing Supply in Southern Nevada

For October, there were a total of 2,332 new listings, showing a 4.7% decrease from September and a more significant 19.1% decrease from the prior year. In October 2022, there were 2,883 new listings, highlighting a difference of 551 more listings on the market in 2022 than in 2023. Additionally, a total of 4,213 single-family houses were listed without offers at the end of October, which is up 3.6% from the previous month but down 46.7% from the prior year.

  • October 2022 single-family homes listed without offers: 7,906

October saw 2.5 months of inventory on the market, indicating an 11.1% increase from September but a substantial 45.9% decrease from the prior year. In October 2022, there were 4.6 months of inventory, underscoring the dynamic changes in the market over the past year. Notably, 67.2% of closings for October occurred within 30 days or less, showcasing a resilient and fast-paced market.

  • October 2022 months of inventory: 4.6 months
  • October 2022 homes on the market 30 days or less: 53.7%

Market Update – Interest Rates

Interest rates in October reached their highest level in 23 years, hitting 7.5% for a 30-year fixed rate. Despite this recent peak, rates have now cooled, providing potential homebuyers with a glimpse of stability in the mortgage market.

This overview of the Las Vegas housing market in October 2023 reveals dynamic shifts in sales, pricing, and inventory, painting a vivid picture of the current real estate landscape in Southern Nevada.

Are Home Prices Dropping in Las Vegas?

As of October 2023, the Las Vegas housing market has experienced a slight dip in home prices. The median sales price of previously owned single-family homes decreased from $450,000 in September to $449,000 in October, reflecting a 0.2% decrease from the prior month. However, it's essential to note that the median price is still up 2% from the previous year, indicating overall stability with some minor fluctuations.

Is It a Buyer's or Seller's Housing Market?

The current state of the Las Vegas housing market suggests a nuanced scenario for both buyers and sellers. With a 6.7% decrease in the number of single-family houses sold in October compared to September, there may be a slightly more favorable environment for buyers. However, the 67.2% of closings for October occurring within 30 days or less indicates a competitive and fast-paced market, which could lean towards a seller's advantage. Prospective buyers should carefully consider these factors and work with real estate professionals to navigate the evolving market conditions.

Will the Housing Market Crash?

Based on the data available for October 2023, there is no indication of an imminent housing market crash in Las Vegas. While there have been fluctuations in the number of homes sold and a modest decrease in median sales prices, the market remains resilient. The 2.5 months of inventory on the market in October reflects a dynamic but relatively stable environment. However, market conditions can change, and it's crucial to monitor trends and consult with real estate experts for the most up-to-date insights.

On a monthly basis, here's how the Las Vegas housing market ended in October 2023

Las Vegas Housing Market Trends
Source: Las Vegas REALTORS®

Las Vegas Housing Market Forecast 2023-2024

What are the Las Vegas real estate market predictions? The Las Vegas real estate market is one of the most dynamic and ever-changing markets in the United States. One factor contributing to this growth is the strong job market in Las Vegas. With major industries such as hospitality, gaming, and entertainment, Las Vegas has a strong job market that attracts many people to the city. This, in turn, increases the demand for housing in the area, which drives up home values.

Another factor contributing to the growth of the Las Vegas housing market is the city's reputation as a popular tourist destination. As more people visit Las Vegas and enjoy the city's amenities, they may be more inclined to purchase a home in the area, which can increase demand and home values.

The Las Vegas-Henderson-Paradise housing market, according to Zillow's latest data through October 31, 2023, presents both challenges and opportunities for buyers and sellers.

Current Market Snapshot:

  • Average Home Value: $405,400
  • Yearly Change: Down 5.2%
  • Days to Pending: Approximately 15 days

Market Forecast:

Zillow's 1-year market forecast for Las Vegas-Henderson-Paradise indicates a decrease of 1.4% by October 31, 2024.

Inventory and Listings:

  • For Sale Inventory (October 31, 2023): 7,688
  • New Listings (October 31, 2023): 2,630

Sale and List Prices:

  • Median Sale to List Ratio (September 30, 2023): 0.994
  • Median Sale Price (September 30, 2023): $400,700
  • Median List Price (October 31, 2023): $449,967

Sales Performance:

  • Percent of Sales Over List Price (September 30, 2023): 25.7%
  • Percent of Sales Under List Price (September 30, 2023): 52.4%
Las Vegas Housing Market Forecast 2023-2024
Source: Zillow

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

Las Vegas, renowned for its entertainment and tourism, is also emerging as an attractive destination for real estate investment. In this section, we'll delve into the current state of the Las Vegas housing market and explore why it might be the right place for you to invest.

Current Market Trends

The Las Vegas real estate market has been on a remarkable journey, but in 2023, we see some notable shifts:

The Las Vegas housing market is showing signs of cooling down. Sales activity decreased in 2023, and there was a significant drop in new listings. The increased months of supply also indicate a more balanced market, suggesting a cooling trend compared to previous months.

The reduction in home prices also presents opportunities for buyers looking for more affordable housing options. However, while prices may have eased slightly, finding a home in Las Vegas remains a challenge due to low inventory. This means that competition among buyers, especially for properties in desirable locations and price ranges, remains fierce.

Top Reasons to Invest in the Las Vegas Real Estate

Here are several compelling reasons why you should consider investing in Las Vegas real estate for the long term:

1. Strong Economy and Population Growth

The Las Vegas metro area is one of the fastest-growing regions in the United States, with approximately 19,000 new residents from the summer of 2020 to 2021, as reported by the U.S. Census Bureau. The city's diverse economy, driven by sectors like tourism, entertainment, gaming, technology, healthcare, and education, provides a stable income source for residents.

2. Rental Income and Appreciation Potential

Las Vegas has a strong rental market, with a significant portion of its population choosing to rent rather than buy. This creates opportunities for long-term investors to generate steady rental income, especially in desirable neighborhoods and near employment centers.

Rental properties in Las Vegas are always in high demand. In September 2023, the median rent for single-family homes increased by 16.7% compared to the previous year, reaching $2,100. The city's rental vacancy rate, at 4.8%, is lower than the national average of 6.2%, ensuring high occupancy rates and cash flow for landlords.

The demand for rental properties in Las Vegas often results in low vacancy rates. Long-term investors can benefit from a stable stream of rental income and less downtime between tenants, increasing overall profitability.

3. Resilience and Adaptability

Lifetime periods of economic downturns, Las Vegas has proven to be resilient. After the challenges of the Great Recession of 2008-2009 and the COVID-19 pandemic in 2020-2021, the city has bounced back with robust growth and development. New projects and initiatives are continually revitalizing the city.

4. Infrastructure Development

Las Vegas has ongoing infrastructure development projects, including new roads, public transportation, and community amenities. These investments can enhance the quality of life and property values, making it an appealing choice for long-term real estate investors.

Several significant projects are shaping Las Vegas's future:

  • The Resorts World Las Vegas: A $4.3 billion mega-resort opened in June 2023, offering over 3,500 rooms, a casino, a theater, and more.
  • The MSG Sphere at The Venetian: A $1.8 billion entertainment venue expected to open in late 2023 or early 2024, featuring a spherical shape and state-of-the-art technology.
  • The Las Vegas Convention Center Expansion: A $980 million project added 1.4 million square feet of space, enhancing the city's event capabilities.
  • The Allegiant Stadium: A $1.9 billion stadium that opened in July 2020 as the home of the NFL's Las Vegas Raiders and host for events and concerts.
  • The Boring Company's Loop System: A $52 million underground transportation system connects various locations in Las Vegas using autonomous electric vehicles.

5. Strong Population Growth

Las Vegas has been experiencing consistent population growth due to its economic opportunities, affordable cost of living, and desirable lifestyle. A growing population creates sustained demand for housing, making it an attractive option for long-term investors.

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

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

6. Economic Diversification

Las Vegas has diversified its economy beyond the entertainment and tourism sectors. The city now boasts thriving industries in technology, healthcare, and manufacturing. Economic diversification contributes to stability and long-term growth potential in the real estate market.

7. Appreciation Potential

The Las Vegas real estate market has historically shown the potential for property appreciation. As the city continues to grow and evolve, property values may increase over time, providing long-term investors with capital gains opportunities.

8. Low Property Taxes

Nevada is known for its favorable tax climate. The state has no personal income tax, and property taxes are relatively low. This can translate into better returns for real estate investors, making long-term ownership more attractive.

9. Tourism and Hospitality

Las Vegas remains a global tourist destination, and the hospitality industry continues to thrive. This ensures a steady flow of short-term rental and vacation rental opportunities, which can be a lucrative segment for long-term investors, especially in the right locations.

10. Education and Workforce

The city has been making investments in education and workforce development. A well-educated and skilled workforce can attract businesses and professionals, leading to increased demand for housing and real estate investment potential in the long term.

11. Wealth of Investment Options

Las Vegas offers a wide range of real estate investment options, from single-family homes to multi-unit properties and commercial real estate. Diversifying your portfolio with different types of properties can provide a solid foundation for long-term financial growth.

Before investing in Las Vegas real estate for the long term, it's crucial to conduct thorough research, understand market conditions, and consult with local real estate experts to make well-informed investment decisions. Long-term real estate investment can be a promising path to building wealth and financial security in this dynamic and growing city.

References:

  • https://www.lasvegasrealtor.com
  • https://summerlincommunities.com/
  • https://www.zillow.com/las-vegas-nv/home-values
  • https://www.neighborhoodscout.com/nv/las-vegas/real-estate#description
  • https://www.realtor.com/realestateandhomes-search/Las-Vegas_NV/overview

Mortgage Rates Predictions 2024: Will Rates Go Down?

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Mortgage Rates Predictions & Forecast

Mortgage rates are influenced by many factors, such as the supply and demand of housing, the economic conditions, the monetary policy, and the expectations of the market. It is hard to predict with certainty how these factors will evolve in the future, but some experts have made projections based on current trends and assumptions.

According to a report by Freddie Mac, the average 30-year fixed-rate mortgage is expected to increase from 3.1% in 2021 to 3.4% in 2022 and 3.8% in 2023. The report also forecasts that the rate will reach 4% in 2024, which is still below the historical average of 5.6%.

However, other analysts have different opinions and scenarios, and some suggest that mortgage rates could go down in 2024 if there is a slowdown in the economic recovery, a rise in inflation, or a change in the Federal Reserve's policy. Ultimately, the direction of mortgage rates will depend on how the events unfold in the next few years, and borrowers should be prepared for both possibilities.

What Are the Current Trends and Predictions for Mortgage Rates?

Mortgage rates have been on a roller coaster ride in 2023, reaching their highest levels in over 20 years. According to Freddie Mac, the average rate on a 30-year fixed-rate mortgage is 7.29% as of November 22, 2023, up from 5.12% in January 2023. The main reason for this surge was the rising inflation rate, which hit a 31-year high of 9.1% in June 2023.

To combat inflation, the Fed started hiking the federal funds rate in March 2023, raising it six times by September 2023 to a range of 5.25% to 5.5%. The Fed also signaled that it might raise it one more time before the end of the year. These actions spooked the bond market, which pushed up bond yields and mortgage rates in anticipation of more tightening.

However, there are signs that inflation has peaked and started to moderate in recent months. The Consumer Price Index (CPI) slowed down to 3.7% in August 2023, below market expectations and within the Fed's target range of 2% to 4%. The core CPI, which excludes food and energy prices, also eased to 2.9%, down from 7% in June 2023.

The main drivers of lower inflation were falling energy prices, easing supply chain disruptions, fading base effects (or comparisons with low prices during the pandemic), and weakening consumer demand.

These developments have raised hopes that mortgage rates will start to trend downward in 2024, although perhaps not at a very fast rate.

Will Mortgage Rates Go Down in 2024?

Below are some expert predictions and forecasts for mortgage rates in 2024:

  • Realtor.com: The real estate marketplace expects mortgage rates to average 6.4% in 2024, gradually decreasing to 6.1% by the end of the year.
  • Redfin: The real estate brokerage forecasts that mortgage rates will stay above 6% for most of 2024, averaging around 6.5%.
  • Business Insider: The financial news site predicts that mortgage rates will fall to somewhere between 5.4% and 6.8% in 2024, depending on the pace and extent of the Fed's rate cuts and the inflation outlook.
  • Forbes: The financial magazine projects that mortgage rates will average 6.3% in 2024, with a range of 5.9% to 6.7%.
  • Fannie Mae: The government-sponsored enterprise that buys and sells mortgages estimates that mortgage rates will average 6.6% in 2024, with a range of 6.3% to 6.8%.
  • National Association of Realtors (NAR): The trade association for real estate professionals forecasts that mortgage rates will average 6.1% in 2024, with a range of 5.9% to 6.2%.
  • Mortgage Bankers Association (MBA): The industry group for mortgage lenders projects that mortgage rates will average 5.7% in 2024, with a range of 5.4% to 5.9%.

What Does This Mean for Homebuyers and Homeowners?

Mortgage rates are still historically high, which means that buying a home or refinancing a mortgage in 2024 will be more expensive than in previous years.

However, the expected decline in mortgage rates could offer some relief and opportunities for homebuyers and homeowners who are willing and able to act quickly and strategically.

For homebuyers, lower mortgage rates could improve their home affordability and purchasing power, allowing them to buy more houses for less money.

However, they might also face more competition and higher home prices, as more buyers enter the market to take advantage of lower rates. Therefore, homebuyers should be prepared to act fast, make strong offers, and negotiate effectively to secure their dream home.

For homeowners, lower mortgage rates could provide an incentive to refinance their existing mortgage and save money on their monthly payments and interest costs. However, they might also have to pay higher closing costs and fees, as lenders try to recoup their losses from lower rates.

Therefore, homeowners should compare different loan options, shop around for the best deal, and calculate their break-even point (or how long it will take to recover their refinancing costs) before deciding to refinance.

What Factors Influence Mortgage Rates?

Mortgage rates are determined by a complex interplay of supply and demand, risk and reward, inflation and growth, and monetary and fiscal policies. Some of the main factors that influence mortgage rates are:

The Federal Funds Rate:

This is the interest rate that banks charge each other for overnight loans. It is set by the Federal Reserve, which uses it as a tool to influence the economy. When the Fed raises the federal funds rate, it makes borrowing more expensive, which can slow down inflation and economic activity.

When the Fed lowers the federal funds rate, it makes borrowing cheaper, which can stimulate inflation and economic activity. The federal funds rate affects mortgage rates indirectly, as it influences the cost of short-term funding for lenders and investors.

The Bond Market:

This is where investors buy and sell debt securities, such as Treasury bonds, corporate bonds, and mortgage-backed securities (MBS). MBS are pools of mortgages that are sold to investors, who receive interest payments from the borrowers. MBS are a major source of funding for mortgage lenders, who use the proceeds to make new loans.

The bond market affects mortgage rates directly, as it determines the yield (or return) that investors demand for buying MBS. When bond yields go up, mortgage rates go up, as lenders have to offer higher interest rates to attract investors. When bond yields go down, mortgage rates go down, as lenders can offer lower interest rates to compete with other investments.

The Inflation Rate:

This is the measure of how much the prices of goods and services increase over time. It reflects the purchasing power of money and the cost of living. Inflation affects mortgage rates indirectly, as it influences the expectations and actions of the Fed and the bond market.

When inflation is high, the Fed tends to raise the federal funds rate to cool down the economy and prevent prices from spiraling out of control. This can push up bond yields and mortgage rates, as investors demand higher returns to compensate for the erosion of their money's value.

When inflation is low, the Fed tends to lower the federal funds rate to boost the economy and prevent deflation (or falling prices). This can pull down bond yields and mortgage rates, as investors accept lower returns in exchange for more stability and safety.

ALSO READ: How To Invest in Mortgage Estate Notes?

What Will be Mortgage Rates in 2024?

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Mortgage Rates in 2024

It is essential to closely monitor mortgage rates as they determine the interest you pay on your home loan. Let us talk about the forecasted 30-Year and 15-Year Mortgage Rates for each month of the year 2024. When you get your house loan approved, the lender will usually project what interest rates are likely to be and then you can decide if you want to go with that interest rate or some other available option.

But when you ask what is the interest rate, you're not just looking at what rate is listed on the contract, you're also taking into account what rate is likely to go up in the future and what will happen to rates if new laws are passed. Several factors can affect your mortgage interest rate, including the total amount of your mortgage loan, the mortgage terms, and the health of the housing market.

Predictions for 30-Year Mortgage Rates in 2024

Let us delve into the forecasted 30-Year Mortgage Rates for each month of the year 2024, as provided by Longforecast.com.

January 2024: A Promising Start

The year begins with a promising outlook for prospective homebuyers. According to Longforecast.com, the 30-Year Mortgage Rate forecast for January 2024 indicates a maximum interest rate of 7.14% and a minimum of 6.51%. The average rate for the month is projected to be 6.88%, with a closing rate of 6.71% at the end of January.

February 2024: Navigating Potential Changes

As we move into February, the landscape shows signs of potential changes. The forecast suggests a maximum interest rate of 7.32%, a minimum of 6.71%, and an average rate of 6.96%. The month is expected to conclude with a 30-Year Mortgage Rate of 7.11%.

March 2024: Maintaining Stability

March brings a sense of stability to the mortgage rates environment. Longforecast.com predicts a maximum interest rate of 7.46%, a minimum of 7.02%, and an average rate of 7.21%. The month concludes with a 30-Year Mortgage Rate of 7.24%, showcasing a steady trajectory.

April 2024: Navigating Potential Changes

The month of April presents a scenario of potential changes, with a maximum interest rate of 7.76%, a minimum of 7.24%, and an average rate of 7.44%. Homebuyers can anticipate a closing rate of 7.53% at the end of April.

May 2024: A Gradual Rise

May witnesses a gradual rise in mortgage rates. The forecast indicates a maximum interest rate of 7.86%, a minimum of 7.40%, and an average rate of 7.61%. The 30-Year Mortgage Rate is expected to settle at 7.63% by the end of the month.

June 2024: Slight Escalation

June sees a slight escalation in mortgage rates, with a maximum interest rate of 7.97%, a minimum of 7.51%, and an average rate of 7.71%. The month concludes with a 30-Year Mortgage Rate of 7.74%, indicating a manageable increase.

July 2024: Monitoring an Upward Trend

July introduces a more pronounced upward trend in mortgage rates. The forecast suggests a maximum interest rate of 8.43%, a minimum of 7.74%, and an average rate of 8.02%. Homebuyers should be prepared for a closing rate of 8.18% at the end of July.

August 2024: Further Upward Movement

August continues the upward movement in mortgage rates, with a maximum interest rate of 8.53%, a minimum of 8.03%, and an average rate of 8.26%. The month concludes with a 30-Year Mortgage Rate of 8.28%, emphasizing the need for vigilance in the market.

September 2024: A Momentary Dip

September presents a momentary dip in mortgage rates, offering a maximum interest rate of 8.28%, a minimum of 7.63%, and an average rate of 8.02%. The 30-Year Mortgage Rate is anticipated to settle at 7.87% by the end of September.

October 2024: Stabilizing Conditions

October indicates stabilizing conditions in the mortgage market, with a maximum interest rate of 8.47%, a minimum of 7.87%, and an average rate of 8.11%. The month concludes with a 30-Year Mortgage Rate of 8.22%, providing a sense of balance.

November 2024: Navigating Volatility

November introduces a degree of volatility in mortgage rates, featuring a maximum interest rate of 8.70%, a minimum of 8.20%, and an average rate of 8.39%. Homebuyers and homeowners alike should be prepared for fluctuations, with the month concluding at a rate of 8.45%.

December 2024: Closing the Year

As the year comes to a close, December exhibits a degree of stability. The forecast includes a maximum interest rate of 8.54%, a minimum of 8.04%, and an average rate of 8.33%. The 30-Year Mortgage Rate is anticipated to conclude at 8.29%, bringing the year to a measured end.

15-Year Mortgage Rates in 2024

Let us delve into the forecasted 15-Year Mortgage Rates for each month of the year 2024, as provided by Longforecast.com.

January 2024: A Balanced Start

The year commences with a balanced outlook for 15-Year Mortgage Rates in January 2024. The forecast reveals a maximum interest rate of 6.58%, a minimum of 6.05%, and an average for the month at 6.36%. Homeowners can anticipate a closing rate of 6.24% at the end of January, suggesting a stable beginning to the year.

February 2024: Maintaining Stability

February continues the trend of stability in 15-Year Mortgage Rates. Projections include a maximum interest rate of 6.73%, a minimum of 6.24%, and an average for the month at 6.44%. The 15-Year Mortgage Rate forecast concludes at 6.53%, emphasizing the consistent nature of rates in this period.

March 2024: Gradual Increments

As March unfolds, there are indications of gradual increments in 15-Year Mortgage Rates. The forecast outlines a maximum interest rate of 6.90%, a minimum of 6.50%, and an average for the month at 6.66%. Homeowners can expect a closing rate of 6.70% at the end of March, underscoring a moderate increase.

April 2024: Navigating Changes

April introduces a scenario of potential changes in 15-Year Mortgage Rates. Projections include a maximum interest rate of 7.23%, a minimum of 6.70%, and an average for the month at 6.91%. The 15-Year Mortgage Rate forecast concludes at 7.02%, signifying a careful navigation through evolving rate dynamics.

May 2024: A Steady Path

May follows a steady path in 15-Year Mortgage Rates, featuring a maximum interest rate of 7.24%, a minimum of 6.82%, and an average for the month at 7.03%. The closing rate at the end of May is expected to remain at 7.03%, providing a sense of stability for homeowners.

June 2024: Moderate Escalation

June showcases a moderate escalation in 15-Year Mortgage Rates. Projections include a maximum interest rate of 7.45%, a minimum of 7.01%, and an average for the month at 7.18%. Homeowners can anticipate a closing rate of 7.23% at the end of June, highlighting a manageable increase.

July 2024: Observing Market Trends

July prompts homeowners to observe market trends closely, with a maximum interest rate of 7.86%, a minimum of 7.23%, and an average for the month at 7.49%. The 15-Year Mortgage Rate forecast concludes at 7.63%, signaling a need for vigilance in the evolving landscape.

August 2024: Incremental Changes

August brings incremental changes to 15-Year Mortgage Rates, featuring a maximum interest rate of 8.16%, a minimum of 7.63%, and an average for the month at 7.84%. The closing rate at the end of August is projected to be 7.92%, highlighting the need for homeowners to stay informed about evolving rate dynamics.

September 2024: Momentary Fluctuations

September witnesses momentary fluctuations in 15-Year Mortgage Rates, offering a maximum interest rate of 7.92%, a minimum of 7.22%, and an average for the month at 7.63%. The forecast concludes with a 15-Year Mortgage Rate of 7.44%, suggesting a temporary shift in the rate landscape.

October 2024: Seeking Balance

October focuses on seeking balance in 15-Year Mortgage Rates, with a maximum interest rate of 7.44%, a minimum of 6.96%, and an average for the month at 7.26%. The closing rate at the end of October is expected to be 7.18%, providing a sense of equilibrium.

November 2024: Navigating Through Volatility

November introduces a degree of volatility in 15-Year Mortgage Rates, featuring a maximum interest rate of 7.71%, a minimum of 7.18%, and an average for the month at 7.39%. Homeowners should navigate through potential fluctuations, with the forecast concluding at a rate of 7.49% at the end of November.

December 2024: Closing on a Measured Note

As the year concludes, December provides a measured note for 15-Year Mortgage Rates. Projections include a maximum interest rate of 7.49%, a minimum of 6.83%, and an average for the month at 7.21%. The 15-Year Mortgage Rate forecast concludes at 7.04%, bringing the year to a stable close for homeowners.

Thus, the forecast shows that 2024 is predicted to unfold as a dynamic year for both 30-Year and 15-Year Mortgage Rates, with a mix of stability, gradual increments, and potential changes. Homebuyers and homeowners are encouraged to stay informed, consider market trends, and seek guidance from financial experts to make informed decisions in this ever-evolving landscape.

It should be noted that analysts' and algorithm-based projections can be incorrect. Interest rate estimates should not be utilized in place of your own study. Always conduct your own research. Furthermore, never invest or trade money that you cannot afford to lose.

Sources:

  • https://longforecast.com/mortgage-interest-rates-forecast-2017-2018-2019-2020-2021-30-year-15-year
  • https://www.noradarealestate.com/blog/mortgage-interest-rates-forecast/

Mortgage Rate Drops to Four-Month Low to 7.17%

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Mortgage Rate Drops to Four-Month Low

The mortgage landscape in the United States is experiencing a significant shift as the contract rate on a 30-year fixed mortgage recently hit a four-month low, standing at 7.17% in the week ending December 1. This notable decline of 20 basis points marks the most substantial drop in five weeks since late 2008, demonstrating a trend that is capturing the attention of homeowners, prospective buyers, and industry experts alike.

Current Mortgage Rates and Trends

According to the Mortgage Bankers Association (MBA), the mortgage rate decline has been consistent over the past five weeks, totaling 69 basis points. Mortgage News Daily, providing more frequent updates, reported the 30-year fixed mortgage rate at 7.08% on Tuesday, underscoring the downward trend.

The dip in mortgage rates is attributed to expectations that the Federal Reserve has concluded its interest rate hikes and may even consider cutting them early next year. After reaching a peak near 8% in October, the retreat in mortgage rates is anticipated to stimulate housing inventory and sales.

Impact on Refinancing and Application Activity

Refinancing activity surged by nearly 14%, marking the most significant increase since February. This surge has contributed to an overall boost in MBA's index of applications. While purchasing activity experienced a slight decrease, it still remains near the highest level since mid-September.

The MBA survey, a staple since 1990, draws on responses from mortgage bankers, commercial banks, and thrifts, covering more than 75% of all retail residential mortgage applications in the US.

Joel Kan, MBA’s Vice President and Deputy Chief Economist, noted that the decline in mortgage rates is linked to slower inflation and market expectations regarding the potential end of the Fed's hiking cycle. This bodes well for homeowners and potential buyers, as the lower rates alleviate the financial burden associated with moving.

Refinance Applications and Purchase Index

According to MBA, refinance applications saw the strongest week in two months and increased on a year-over-year basis for the second consecutive week, a positive sign suggesting that 2023 might have marked the low point in this cycle for refinance activity. Purchase applications, on the other hand, remained 17% lower than a year ago, impacted by low inventory and ongoing affordability challenges.

Additional Insights from MBA’s Weekly Mortgage Application Survey

Several key insights emerge from MBA's Weekly Mortgage Application Survey:

  • The average size of all loans and those for home purchases each fell by more than $15,000 last week. The overall loan size of $345,900 is the smallest since the first week of 2022. The average purchase loan amount was $396,500.
  • The FHA share of total applications increased to 15.0%, and the VA share rose to 12.8%. USDA loan applications accounted for 0.5% of the week’s total.
  • Various mortgage rates witnessed changes, with the 7.17% rate for conforming 30-year fixed-rate mortgages representing a 20-basis point decline. Jumbo 30-year FRM, FHA-backed 30-year FRM, and Fifteen-year FRM rates also experienced shifts.
  • The ARM share of activity decreased to 7.4% of total applications, a 3 percentage point drop over the previous month.

As the mortgage landscape continues to evolve, these developments signal potential opportunities for homeowners considering refinancing and prospective buyers navigating the current real estate market.

Austin Housing Market Forecast 2023: Home Prices Will Drop

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Austin Housing Market

The latest Austin Housing Market Report reveals a dynamic market with fluctuations in prices, increased sales, and a shifting inventory. Despite challenges such as higher interest rates, buyers continue to find opportunities in the Austin housing market.

A recent report from Realtor.com has stirred the conversation by making bold predictions about the Austin housing market for 2024. The national forecast for home prices in the U.S. suggests a modest dip of 1.7% in 2024. However, what captures attention is the specific prediction for the Austin area—a substantial 12.2% drop in home prices next year.

This projection has sparked discussions among real estate experts and residents, prompting varied opinions and analyses. Contrary to the above-mentioned forecast, there could be a slight increase in Austin home prices for the upcoming year despite higher interest rates.

The interplay of factors like interest rates, buyer behavior, and creative solutions from the real estate industry will likely shape the trajectory of Austin's real estate landscape. One thing is very clear as we approach the new year, the real estate landscape in Austin is poised for change, and whether it aligns with predictions or takes an unexpected turn remains to be seen.

Current Austin Housing Market Trends 2023

In October 2023, the Central Texas housing market witnessed significant shifts, as reported by the Austin Board of REALTORS® (ABoR). Despite higher interest rates, the market experienced a 7.5% decline in the median home price, settling at $435,000. However, the number of residential homes sold increased by 4.1%, totaling 2,337 sales. This indicates resilience among buyers who are finding value in the market.

“An increase in sales and a jump in pending sales indicates buyers continue to enter the market and are finding more bargaining power throughout the transaction,” noted Ashley Jackson, 2023 ABoR president. She emphasized the importance of working with a REALTORⓇ for success in this evolving market.

Key Metrics:

  • Sales Performance: In October, the sales dollar volume decreased by 1.5% year over year to $1,307,192,441 across the MSA.
  • Days on Market: Homes spent an average of 68 days on the market, reflecting an increase of 21 days from October 2022.
  • Inventory: Housing inventory increased by 0.7 months to 3.2 months, with new listings dipping by 0.8% to 3,202 listings.
  • Active Listings: Active listings increased by 5.2% year over year to 9,942 listings, and pending listings rose by 12.0% to 2,257 listings.

“Despite higher mortgage rates this summer and fall, closed sales across the MSA rose 4.1% year over year in October to 2,337 sales,” highlighted Clare Losey, Ph.D., housing economist for ABoR. She emphasized the negotiating power of buyers, with the close-to-original list price ratio reaching 93.1% in October.

City-Level Insights:

City of Austin:

  • Residential Homes: 602 homes were sold, marking a 3.5% decrease from October.
  • Median Price: The median price for residential homes was $540,000, showing a 1.8% decline from the previous month.
  • Inventory: With 4.1 months of inventory, there was a 1.3-month increase compared to October 2022.
  • Total Dollar Volume: The total dollar volume of homes sold was $413,742,262, reflecting a 4.4% decrease.

Travis County:

  • Residential Homes: 957 homes were sold, experiencing a 7.7% decrease from October.
  • Median Price: The median price for residential homes was $524,500, showing a 1.2% decline from the previous month.
  • Pending Sales: There were 909 pending sales, marking a 0.3% decrease compared to October.
  • Total Dollar Volume: The total dollar volume of homes sold was $668,881,399, reflecting a 7.2% decrease.

“Homeownership is still the best way to create generational wealth,” emphasized Losey, noting that the median price is still 44% higher than it was in September 2018.

County-Specific Insights:

Williamson County:

  • Residential Homes: 844 homes were sold, marking an 11.2% increase from October.
  • Median Price: The median price for residential homes was $424,990, showing a 7.1% decline from the previous month.
  • Pending Sales: There were 794 pending sales, marking a 14.1% increase compared to October.
  • Total Dollar Volume: The total dollar volume of homes sold was $403,613,886, reflecting a 4.1% increase.

Hays County:

  • Residential Homes: 360 homes were sold, marking a 21.6% increase from October.
  • Median Price: The median price for residential homes was $373,294, showing an 8.7% decline from the previous month.
  • Active Listings: Active home listings increased by 24.7% compared to October 2022.
  • Total Dollar Volume: The total dollar volume of homes sold was $167,405,638, reflecting a 6.3% increase.

“The Truth About Austin’s Missing Housing -District Level Analysis,” ABoR's newest research report, sheds light on the severe undersupply of housing by City Council District and among different racial/ethnic groups. Ashley Jackson urged policymakers to consider this data for effective housing solutions.

Bastrop County:

  • Residential Homes: 125 homes were sold, marking a 6.8% increase from October.
  • Active Listings: Active home listings increased by 16.1% compared to October 2022, reaching the highest inventory in the MSA.
  • Total Dollar Volume: The total dollar volume of homes sold was $49,146,166, reflecting a 1.8% decrease.

Caldwell County:

  • Residential Homes: 51 homes were sold, marking a 45.7% increase from October.
  • Median Price: The median price for residential homes was $318,480, showing a 0.2% increase from the previous month.
  • Active Listings: Active home listings increased by 71.7% compared to October 2022.
  • Total Dollar Volume: The total dollar volume of homes sold was $16,851,436, reflecting a 50.8% increase.

Are Home Prices Dropping in Austin?

According to the October 2023 Central Texas Housing Market Report by the Austin Board of REALTORS® (ABoR), home prices in the Austin-Round Rock MSA experienced a 7.5% drop. The median home price declined to $435,000 during this period, reflecting a notable decrease. This indicates a shift in the pricing trend, with buyers potentially benefiting from more favorable market conditions.

Is It a Buyer's or Seller's Housing Market?

Despite the decline in home prices, the overall dynamics suggest that the housing market is still in a transitional phase. The increase in residential homes sold by 4.1% to 2,337 total sales indicates that buyers are finding value in the market, even in the face of higher interest rates. The rise in pending sales and the extension of days on the market provide insights into a market that is still normalizing. The key takeaway is that buyers may have more negotiating power than in previous periods, emphasizing that it could be leaning towards a buyer's market.

Will This Housing Market Crash?

The data from the October 2023 Central Texas Housing Market Report does not suggest an imminent housing market crash. While there has been a decline in median home prices, it is essential to consider the broader context. Despite challenges such as higher mortgage rates, closed sales across the MSA rose by 4.1% year over year. The housing market is described as still normalizing, indicating a period of adjustment rather than an impending crash. It underscores the importance of staying informed and working with experienced REALTORSⓇ to navigate the evolving market conditions successfully.

Austin Housing Market Forecast 2023-2024

Austin Housing Market Forecast 2023-2024
Source: Zillow

Is the Austin Housing Market Overpriced?

The question of whether the Austin housing market is overpriced is a subjective one and can depend on several factors. Firstly, it is important to note that the Austin housing market has been experiencing an unprecedented level of demand over the past few years. This demand has been driven by a combination of factors, including a strong local economy, a growing population, and an influx of out-of-state buyers. This increase in demand has resulted in a significant rise in the median home price.

Recent research suggests that homes in Austin continue to be among the most overvalued in the United States. The study conducted by researchers from Florida Atlantic University and Florida International University reveals that homebuyers in Austin are still paying almost 51% more than what is expected for homes. Only Boise, Idaho, has a higher premium, with homebuyers paying an exorbitant 81% more.

However, it is equally essential to compare the affordability of homes in Austin to other major cities. Although the median home price in Austin is high compared to historical norms, it is still lower than in cities like San Francisco, New York, or Los Angeles. Additionally, Austin's cost of living is generally lower than other major cities, which can make it more feasible for some buyers to own a home.

Another aspect to consider is the potential growth of the Austin housing market. While it is impossible to predict the future, many experts believe that Austin's robust economy and growing population make it a worthwhile long-term investment for homebuyers. Furthermore, the city has a diverse economy, making it less vulnerable to economic shocks.

Ultimately, whether or not the Austin housing market is overpriced is subjective. While some buyers may find the high prices unaffordable, others may see it as a sound investment in a thriving city. It is crucial for prospective buyers to assess their financial situation and goals before deciding to purchase a home in Austin or any other market.

Is Austin a Good Place for Real Estate Investment?

Austin's rapidly expanding economic industry is driving more people into the city which is increasing the housing demand. A number of reasons have affected the present situation of the Austin housing market, one of which is the high migration of firms and persons relocating to the city from Texas and out-of-state, which has led to a robust and varied economy that attracts people seeking opportunity.

A surge of people moving in, combined with rapid population growth and low mortgage interest rates, has turned Austin and its surrounding area into a sellers' market. Austin’s engine of job and population growth is not projected to slow down anytime soon—the biggest drivers of residential real estate demand. Its economy has diversified and strengthened over the past two decades.

Companies like Google and Tesla are moving operations to Austin. The software giant Oracle has also relocated its headquarters here. As more companies move here, that means more people looking for homes, and the city is also attractive to outside investors. With a steady influx of job creation in the pipeline, the housing market will continue to post strong numbers. Big companies moving here will also play into what happens to the housing market.

If you're considering real estate investment, Austin, Texas, is a city that should be on your radar. Known for its vibrant culture, strong economy, and population growth, Austin offers numerous opportunities for real estate investors. Let's explore in detail why Austin is a promising destination for real estate investment.

Population Growth and Trends

Population Growth:

  • Austin has been experiencing consistent and substantial population growth for many years. The city's population has been steadily increasing, making it one of the fastest-growing metropolitan areas in the United States.
  • The city's appeal to newcomers is driven by factors like its vibrant tech scene, cultural attractions, and overall quality of life.

Trends:

  • The population growth trend in Austin is expected to continue, with projections indicating a significant increase in residents over the coming years.
  • As the city's population expands, the demand for housing, both rental and owned, is likely to rise, creating opportunities for real estate investors.

Economy and Jobs

Economic Strength:

  • Austin's economy is robust and diverse, with a thriving technology sector, a burgeoning startup scene, and a strong presence of major corporations.
  • The city consistently ranks high in terms of job creation and economic growth, making it an attractive destination for professionals seeking employment opportunities.

Job Market:

  • The city's job market is diverse and dynamic, with a focus on technology, healthcare, education, and entertainment.
  • Employment opportunities continue to draw individuals to Austin, contributing to the population growth and housing demand.

Livability and Other Factors

Livability:

  • Austin consistently receives high marks for its quality of life. The city offers a vibrant cultural scene, excellent healthcare facilities, and access to outdoor activities.
  • It's known for its music and arts culture, making it a desirable place to live for professionals and creatives.

Education:

  • Austin is home to top-tier educational institutions, including the University of Texas at Austin. This draws students, academics, and their families to the city, further boosting the demand for housing.

Infrastructure:

  • The city has invested in infrastructure and transportation improvements to accommodate its growing population, making it more accessible and commuter-friendly.

Rental Property Market Size and Growth

Rental Market:

  • Austin's rental property market is substantial and continues to grow. The city offers a wide range of rental properties, from apartments to single-family homes, catering to a diverse tenant population.
  • The city's dynamic job market attracts young professionals, making it an ideal location for rental property investment.

The Zumper Austin Metro Area Report analyzed active listings across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Texas one bedroom median rent was $1,134 last month. Austin was the most expensive city with one bedrooms priced at $1,530 whereas San Marcos ranked as the most affordable city with one bedrooms priced at $1,180.

The best place to buy rental property is about finding growing markets. Cities like Round Rock, Cedar Park, and Pflugerville 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 their own opportunities for investors.

The Least Expensive Rental Markets

  • San Marcos: San Marcos is ranked as the most affordable city in the Austin region, with one-bedroom rentals priced at just $1,180. This makes it an attractive option for those seeking affordability without compromising on location and amenities.
  • Pflugerville: Pflugerville takes the second spot in affordability, with one-bedroom rentals priced at $1,240. It's a great option for renters looking for a cost-effective living arrangement in the Austin area.
  • Cedar Park: Cedar Park is the third most affordable city in the region, with one-bedroom rentals available for $1,330. While slightly pricier than the previous two, it still offers competitive rental rates.

These cities provide various rental options for individuals and families looking to reside in the Austin area while staying within their budget. The affordability of these locations can make them particularly attractive for renters.

The Largest Declines in Rental Prices (Year Over Year)

  • Cedar Park: Cedar Park had the most significant decline in rental prices, falling by a substantial 14.7% since this time last year. This presents an opportunity for renters to find more affordable housing in this city.
  • Pflugerville: Pflugerville takes the second spot in terms of declining rental prices, with rents dropping by 12.7%. This decline provides renters with a chance to secure more budget-friendly rental options.
  • Austin: Austin ranks as the third city with a notable 11% decrease in rental prices. While Austin is typically known for its competitive rental market, this decline may open up more affordable possibilities for tenants.

These cities with declining rental prices offer potential savings for renters and create opportunities for those looking to secure more cost-effective housing. For investors, these cities may present intriguing possibilities, as the current market conditions allow for potential investment opportunities.

Austin Rental Market
Source: Zumper

Growth Potential:

  • The city's population growth and job market strength contribute to the growth potential of the rental property market. As more people move to Austin, the demand for rental units is expected to rise.
  • Investors can explore various rental strategies, including long-term leases, short-term rentals, and vacation rentals, to diversify their real estate portfolio.

Other Factors Related to Real Estate Investing

Investor-Friendly Environment:

  • Austin's business-friendly environment extends to real estate investment. The city offers attractive incentives and a favorable legal framework for real estate investors.
  • Real estate investors benefit from a strong property rights regime and a well-regulated market.

Tax Benefits:

  • Texas does not have a state income tax, which can be advantageous for investors looking to maximize their returns.
  • Investors should explore the tax implications of specific investment strategies, including property taxes and capital gains.

Market Resilience:

  • Austin's real estate market has shown resilience during economic downturns, and it is considered one of the more stable markets in the country.
  • Investors appreciate the market's ability to weather economic fluctuations and maintain its growth trajectory.

Diversification:

  • Investors can diversify their portfolios by exploring various types of real estate, from residential properties to commercial and mixed-use developments, taking advantage of Austin's growing and diverse market.

As a real estate investor, Austin's population growth, strong economy, livability, rental property market size, and other investor-friendly factors make it a compelling choice. However, it's essential to conduct thorough market research, consult with local real estate experts, and tailor your investment strategy to your specific goals and risk tolerance. Austin's real estate market offers exciting opportunities, but informed decision-making is key to success.

References:

  • https://www.abor.com/new-center/market-stats
  • https://www.zillow.com/austin-tx/home-values
  • https://www.realtor.com/realestateandhomes-search/Austin_TX/overview

Is Compton California Dangerous Place to Live: Crime Data

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is compton california dangerous

Compton, a city located in southern California, has gained notoriety for its history of gang violence, poverty, and crime. The question that often arises is whether Compton remains a dangerous place today, and how it compares to other cities across the United States. In this blog post, we will delve into the facts and statistics concerning Compton's safety, and crime rates, and identify some of the most notorious streets within the city.

Is Compton, California Dangerous Place to Live?

Compton, California has long been a subject of curiosity and concern when it comes to safety. It's a city that has been portrayed in various ways in pop culture, from music to movies, but what does the data tell us about its safety? According to NeighborhoodScout, a prominent source for crime statistics, Compton's crime rate is a matter of serious concern, with a rate of 38 crimes per one thousand residents, placing it among the most dangerous communities in America.

When considering both violent and property crimes, the chances of becoming a victim in Compton are as high as one in 26. This is a startling statistic that raises eyebrows and demands a closer look at the safety of this California city.

It's essential to put these figures into perspective. In California, where Compton is located, over 92% of the communities have a lower crime rate than Compton. This statistic alone should make one pause and ponder about the state of safety in the city. Furthermore, when compared to communities with similar population sizes, Compton's crime rate stands out as significantly higher than most.

Now, let's delve into the specifics of the types of crimes that contribute to Compton's high crime rate. Violent crimes, which include offenses like rape, murder, armed robbery, and aggravated assault, are a notable concern. According to NeighborhoodScout's analysis of FBI crime data, the chances of becoming a victim of one of these violent crimes in Compton are one in 85, a sobering statistic by any measure.

Property crimes are another area of concern, with burglary, larceny over fifty dollars, motor vehicle theft, and arson being the focus of analysis. In Compton, the odds of becoming a victim of a property crime are one in 38, resulting in a rate of 26 crimes per one thousand residents. This sheds light on the significant prevalence of property-related offenses in the area.

One particularly concerning aspect highlighted by the data is the rate of motor vehicle theft in Compton. NeighborhoodScout's analysis of FBI crime data shows that Compton has one of the highest rates of motor vehicle theft in the nation. Residents face a staggering one in 99 chance of having their car stolen, a statistic that raises serious questions about vehicle safety in the city.

Compton's Crime Rates

According to the FBI's Uniform Crime Report, in 2019, Compton reported a total of 3,533 crimes. Among these, 1,104 were classified as violent crimes, and 2,429 were categorized as property crimes. This staggering number translates to a crime rate of 3,533 per 100,000 people, which is 37% higher than the California state average and 51% higher than the national average.

The violent crime rate in Compton stood at 1,142 per 100,000 people, which is more than three times the national average of 367 per 100,000 people. This category includes heinous offenses like homicide, rape, robbery, and aggravated assault. Shockingly, Compton reported 18 homicides in 2019, resulting in a homicide rate of 18.6 per 100,000 people, again more than three times the national average of 5 per 100,000 people.

Property crimes were also alarmingly prevalent in Compton, with a rate of 2,428 per 100,000 people, slightly surpassing the national average of 2,110 per 100,000 people. Property crimes encompass burglary, larceny-theft, and motor vehicle theft. Compton recorded 334 burglaries, 1,285 larceny-thefts, and 727 motor vehicle thefts in 2019.

Comparing Compton to cities of similar population sizes in the United States, it ranks as the 14th most dangerous city in terms of violent crime rates. Some cities with similar or higher violent crime rates include Memphis, Detroit, Chicago, Baltimore, Milwaukee, Cleveland, St. Louis, and New Orleans.

Compton's Most Dangerous Streets

Compton is marked by streets notorious for their high crime rates and gang activity. Here are some of the most dangerous streets in Compton that you should be cautious of:

  • Compton Boulevard: This street is known for its potholes and heavy traffic. It's narrow and poses visibility challenges around corners, leading to accidents and shootings. Violent crime and homicide rates are high here.
  • Long Beach Boulevard: This run-down street has a sparse population and experiences high crime and violence, including fatal accidents and shootings. It's also notorious for drug activity.
  • Alameda Street: This street is marked by gang activity and minimal police presence, resulting in a high rate of shootings and homicides. In 2015, it had the highest number of shootings in the city with 21 incidents.
  • Manchester Boulevard: Poor lighting and the absence of sidewalks characterize this street, which has a high rate of crime and violence, including stabbings and shootings. It's a hotspot for gang activity.
  • Atlantic Avenue: Abandoned buildings and poor lighting contribute to a high rate of crime and violence on this street, with numerous shootings and other violent crimes.
  • Rosecrans Avenue: This bustling and noisy street has a high rate of crime and violence, including robberies and shootings. It's also known for prostitution activity.
  • Desert Avenue: Isolation and darkness make this street particularly dangerous, with a high rate of crime and violence, including burglaries and shootings. It's also known for drug activity.

In summary, Compton is a city that grapples with numerous challenges and problems. It maintains a high rate of crime and violence, making it a place of concern for both residents and visitors. While it is crucial to be aware of the risks and dangers that Compton presents, it's also essential to acknowledge its positive aspects, including its rich culture and history that have influenced music, art, sports, and politics.

For those planning to visit or reside in Compton, it's paramount to exercise caution and respect for the people and the environment. While the city faces issues, it also carries the potential to offer unique and positive experiences. Understanding Compton's complexities is a critical step toward fostering a safer and more vibrant community.

Wichita Housing Market: Prices, Trends, Forecast 2023-2024

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Wichita Housing Market

The Wichita housing market is currently experiencing a correction after a period of rapid growth. As of October 2023, Wichita home prices have surged by 0% year-over-year, with a median price of $215K, according to Redfin. Homes typically spend 11 days on the market, slightly longer than the 9 days recorded last year. Despite a slight decrease in the number of homes sold (385 this year compared to 395 last year), the market remains vibrant.

Wichita's median sale price stands at $215K, positioning it 48% lower than the national average. Moreover, the overall cost of living in Wichita is 10% lower than the national average, making it an attractive option for potential homeowners. Explore how Wichita's housing landscape measures up against the rest of the country.

Homes in Wichita typically receive multiple offers, some with waived contingencies. On average, homes sell for about 1% below the list price and go pending in around 11 days. Delve into the competitive landscape of Wichita's housing market.

When compared with nearby cities, Wichita remains a highly competitive market. Homes in the surrounding areas, on average, sell for about 1% below list price, with pending times ranging from 6 days to 3 days. Explore the competitiveness scores of nearby cities to gain a comprehensive understanding.

The sale-to-list price ratio for all home types in Wichita stands at 99.5%. Examine the trends over the years, with 2023 experiencing a notable shift from the 80.0% recorded in 2022. Understand the factors influencing the pricing dynamics in Wichita's housing market.

Is It a Buyer's or Seller's Housing Market?

As of October 2023, Wichita, KS is identified as a buyer's market, indicating that the supply of homes exceeds the current demand. This scenario offers prospective buyers a favorable position, providing more options and potentially more negotiating power. For sellers, understanding the market balance is crucial for strategic pricing and marketing decisions.

Median Listing Home Price Overview

One of the key indicators of the Wichita, KS housing market is the median listing home price, which stood at $265,000 in October 2023. According to Realtor.com, this reflects a notable 1.9% year-over-year increase, signaling a positive trend in the market. A

The median listing home price per square foot provides valuable insights for potential buyers and investors, averaging $130. This metric is crucial for understanding the cost efficiency of properties in different neighborhoods within Wichita.

Sale-to-List Price Ratio

For those navigating the Wichita real estate landscape, the sale-to-list price ratio is a critical factor. In October 2023, homes in Wichita, KS, sold at an impressive 101.05% of the asking price on average. This suggests a balanced market where buyers and sellers find common ground, contributing to a healthy real estate environment.

Median Days on Market

Time is of the essence in real estate, and the median days on market metric sheds light on the average duration a property stays listed. In Wichita, KS, homes sell, on average, after 35 days on the market.

Wichita Housing Market Forecast 2024

Home Sales Projection

Weaker demand and tight inventories are hindering sales growth in the Wichita area. The forecast suggests a year-end decrease of 10.4%, resulting in 9,470 units sold. Looking ahead to 2024, sales are anticipated to continue declining to 9,390 units.

Construction Outlook

New home construction activity in Wichita is expected to experience a 7.2% decline this year, with 1,255 new single-family permits projected. However, there is optimism for 2024, with an anticipated 8.8% increase in permitting activity to reach 1,365 units, contingent on mortgage rates falling as expected.

Home Price Trends

Despite limited inventory, Wichita home prices are projected to continue appreciating at a more typical rate. The forecast indicates a 4.2% increase in home values for the current year, followed by another 3.4% rise in 2024.

Note: The forecast is based on the analysis conducted by the Wichita State University Center for Real Estate.

ALSO READ:

Kansas City Housing Market: Prices, Trends, Forecast 2023

References:

  • https://www.redfin.com/city/19878/KS/Wichita/housing-market
  • https://www.realtor.com/realestateandhomes-search/Wichita_KS/overview
  • https://www.wichita.edu/about/wsunews-releases/2023/09-sept/realestate_3.php

Will Home Prices Drop in 2024: Housing Market Predictions

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Housing Market Predictions: Will Home Prices Drop in 2024

Home prices will slow down but not drop in 2024. But there is no one-size-fits-all answer to this question, as the housing market in the United States will likely vary depending on location and other factors. However, some experts believe that the market will decline, while others believe that home prices will rise.

Most experts in the housing industry predict less buyer demand, lower prices, and higher borrowing rates. Rate increases, along with a shortage of availability, have pushed many purchasers to the sidelines. Home prices may fall slightly, but not drastically as they did in 2008. Some believe that the housing market will continue to outperform compared to the pre-pandemic.

The housing market is always in flux, and predictions for the future can be challenging to make. However, experts are making some educated guesses about what we can expect in the coming years. Here's a look at some housing market predictions.

According to a Forbes Advisor article, home prices are expected to continue to come down slowly, making it difficult for many homebuyers to access affordable housing.

ALSO READ: Lastest National Housing Market Trends

However, the article notes that there may be some relief for buyers in the form of more inventory becoming available on the market. This may help to level out the playing field, making it easier for more people to find a home that they can afford. Another prediction from US News & World Report is that the housing market will experience a relatively shallow recession.

This prediction assumes that inflation will be under control by 2024, allowing mortgage rates to remain stable. In this scenario, home prices are expected to rise, but at a slower pace than they have been in recent years.

Will Home Prices Drop in 2024?

Here's when home prices can drop. While this may appear to be oversimplified, it is how markets work. Prices drop when demand is met. There is now an excessive demand for houses in several property markets, and there simply aren't enough homes to sell to prospective purchasers. Home construction has increased in recent years, although they are still far behind. Thus, big drops in housing prices would necessitate considerable drops in buyer demand.

Demand falls mostly as a result of higher interest rates or a general weakening of the economy. Rising interest rates would ultimately need far less demand and far more housing supply than we now have. Even if price growth slows this year, a drastic fall in home prices is quite unlikely. As a result, there will be no fall in house values; rather, a pullback, which is natural for any asset class. According to many experts, in the United States, house price growth is forecasted to “moderate” or maybe slightly drop by the end of 2023.

Fannie Mae, a leading authority in real estate data and insights, has updated its quarterly home price forecast. Their revised growth projection for 2023 is notably optimistic, demonstrating that home prices will not drop in 2023. It is a substantial upward adjustment from their earlier forecast.

Measured by the Fannie Mae Home Price Index (FNM-HPI), they anticipate a remarkable 6.7% growth on a Q4/Q4 basis, up from their previous prediction of 3.9%. This surge can be largely attributed to the unexpected influx of transaction data during the third quarter of the year.

Home price forecast
Source: Fannie Mae

Remarkably, house prices have exhibited greater resilience than anticipated, even in the face of higher mortgage rates and the challenges associated with affordability. However, Fannie Mae still foresees a slowdown in house price growth in the coming years. Their prediction for 2024 suggests a deceleration, with house price growth projected to slow down to 2.8% on a Q4/Q4 basis.

On the front of total home sales, Fannie Mae has made a slight downward revision to their forecast. This adjustment is driven by a more pessimistic outlook on mortgage rates. They now estimate sales to reach 4.81 million and 4.80 million in 2023 and 2024 respectively, a drop from their earlier projection of 4.84 million and 4.88 million.

Despite this dip in the sales forecast, the higher anticipated house prices have led to an unchanged prediction for mortgage origination volumes in 2023, expected to reach $1.56 trillion. The outlook for 2024 has been revised slightly upwards to $1.90 trillion, previously predicted at $1.88 trillion.

In summary, Fannie Mae's insights provide a valuable glimpse into the trajectory of the housing market, shedding light on the dynamics of home prices, sales, and mortgage origination volumes. These projections offer essential guidance for stakeholders navigating the ever-evolving landscape of the real estate market.

Will Home Prices Drop in 2024?

Home prices will slow down but not drop in 2024. Zillow, a prominent player in the real estate forecasting arena, recently revised its forecast for the nation's typical home value, citing unexpected fluctuations in September and a relentless climb in mortgage rates. This adjustment marks a noteworthy departure from the previous month's expectations.

Will Home Prices Drop
Source: Zillow

The Zillow Home Value Index (ZHVI) is a crucial metric for understanding the real estate landscape, and Zillow now anticipates a more conservative growth of 3.3% in 2023, down from the initial projection of 4.3%. This revision underscores the impact of the uncharacteristic month-over-month dip observed in September.

Looking ahead, Zillow's forecast for ZHVI growth over the next 12 months (from September 2023 through September 2024) has been adjusted to 2.1%, a significant drop from the previous month's prediction of a 4.9% rise from August 2023 through August 2024. These adjustments reflect the dynamic nature of the real estate market, influenced by various economic factors.

Despite the adjustments in home value forecasts, Zillow maintains a steady projection for existing home sales in 2023 at 4.1 million units. However, this figure represents an 18% decline from the previous year, indicating a notable shift in the market dynamics.

For-sale inventory is expected to linger near historically low levels, exerting constraints on potential sales and maintaining upward pressure on home values. Elevated mortgage rates contribute to this trend, impacting new listings as “rate-locked” homeowners choose to retain the relatively low monthly payments associated with their current homes.

Despite affordability challenges that price out some home shoppers, the market remains competitive due to the presence of active buyers. This competition intensifies the pressure on the limited homes available for sale, further shaping the current real estate landscape.

Top 5 Metros Where Home Prices Will Drop

Some regional markets are projected to see home price declines. In their latest forecast, they now predict that home values will fall 203 of the nation's 894 regional housing markets between September 2023 and September 2024. Greenville MSA tops the list with the highest expected decline of 9.9% in home prices by Sept 2024.

Metro Area Change in Values
Greenville, MS -9.9%
Bennettsville, SC -9.7%
Helena, AR -9.7%
Hobbs, NM -9.0%
Cleveland, MS -9.0%

Top 5 Metros Where Home Prices Will Increase

Zillow still predicts that the vast majority of regional housing markets will see home values appreciating in 2023. Among the 894 regional housing markets Zillow economists analyzed, 678 housing markets are predicted to see rising house prices over the next twelve months ending with September 2024. 13 markets are predicted to remain flat for home price growth. The housing market in Thomaston, GA is forecasted to see the highest year-over-year house price growth of 8.6%.

Metro Area Change in Values
Thomaston, GA +8.6%
Clewiston, FL +7.8%
Jackson, WY +7.5%
Laurinburg, NC +7.3%
Toccoa, GA +7.2%

Predictions from the CoreLogic's Data – October

CoreLogic, a leading provider of real estate data, offers comprehensive analysis and forecasts.

Home prices across the United States, including distressed sales, exhibited a 3.7% year-over-year increase in August 2023 as compared to the same month in 2022. Furthermore, on a month-over-month basis, prices showed a 0.3% increase in August 2023 compared to July 2023.

Forecasted Price Trends: Will Home Prices Drop?

According to CoreLogic's Home Price Index (HPI) Forecast, we can expect month-over-month increases of 0.2% from August 2023 to September 2023. Looking ahead, from August 2023 to August 2024, there is a projected year-over-year increase of 3.4% in home prices.

Notably, in August, New England states witnessed the most significant year-over-year price gains. States like New Hampshire, Maine, Vermont, and Rhode Island saw notable spikes, showcasing 9.4% and 8.9% increases, respectively.

Expert Insights and Market Forecast

Chief Economist for CoreLogic, Selma Hepp, acknowledges the challenges posed by rising mortgage rates affecting affordability. Despite this, she emphasizes that strong demand, a healthy labor market, and robust wage growth sustain the growth in home prices, aligning with seasonal averages. However, with a slower buying season ahead and the increasing costs of homeownership, additional monthly gains may slow down.

US Housing Markets Where Home Prices Will Drop

CoreLogic's Market Risk Indicator (MRI) provides valuable insights into the health of housing markets, predicting the probability of price declines over the next 12 months. In this analysis, we focus on markets that carry a very high risk of a decline in home prices.

1. Spokane-Spokane Valley, WA

At the top of the list is Spokane-Spokane Valley in Washington, where the MRI indicates a very high risk with a 70% probability or more of home price decline in the coming year. Factors contributing to this risk could include economic conditions, housing inventory, and demand-supply dynamics.

2. Cape Coral-Fort Myers, FL

Cape Coral-Fort Myers in Florida also stands out as a market with a very high risk of home price decline. Economic fluctuations or changes in the local real estate landscape could contribute to this assessment, highlighting the importance of closely monitoring this market for potential shifts.

3. Youngstown-Warren-Boardman OH-PA

The Youngstown-Warren-Boardman region spanning Ohio and Pennsylvania is another market flagged with a very high risk of a home price decline. Economic factors and local market conditions may be influencing this prediction, emphasizing the need for prudent decisions in this market.

4. Ocala, FL

Ocala in Florida is also identified as a market facing a very high risk of home price decline. Monitoring the economic and housing trends in this area is crucial for stakeholders to make informed decisions.

5. Deltona-Daytona Beach-Ormond Beach, FL

Deltona-Daytona Beach-Ormond Beach region in Florida is noted as a market with a very high risk of home price decline. Real estate participants should stay vigilant and adapt strategies based on evolving market dynamics in this area.

Top Markets at Risk of Home Price Decline
Source: CoreLogic

Conclusion: Will Housing Prices Drop in 2024?

The broader outlook from several housing analysts is that housing demand will continue to surge due to several factors. For e.g; the millennials have aged into their prime homebuying years, and they are now the fastest-growing segment of home buyers. In 2018, millennial homeownership was at a record low but the situation has changed markedly. They are no longer holding back when it comes to homeownership.

According to the 2023 Home Buyers and Sellers Generational Trends report from the National Association of Realtors, the demand for homes is increasing among baby boomers, who now make up the largest generation of homebuyers in the US, accounting for 39% of home buyers in 2022, up from 29% in 2021.

On the other hand, younger and older millennials' combined share of homebuyers decreased from 43% in 2021 to 28% in 2022. Generation X made up 24% of total buyers, and Generation Z makes up 4% of homebuyers, with 30% of Gen Z moving directly from a family member's home into homeownership.

Furthermore, buyers are now moving farther distances, with younger boomers moving the greatest distance at a median of 90 miles away. Additionally, all generations agreed that the most common reason to sell was to be closer to friends and family. Buyers expect to live in their homes for 15 years on average, up from 12 years in 2021.

Overall, the report suggests that demand for homes is growing among baby boomers and Generation Z while decreasing among younger and older millennials. Buyers are moving farther distances, with a desire to be closer to friends and family being the most common reason to sell. Buyers also view owning a home as a good investment, with a majority of buyers using a real estate agent to help with the purchase.

Hence, housing prices cannot drop drastically. Although the housing market appears to be cooling from 2023 through 2024, there are some bright spots. Economic forecasters, despite the recent recession, continue to expect robust demand from purchasers (millennials) and high home price increases in the housing market.

With homebuyers active and supply still lacking, the current trend of home prices will not see a major downfall. Despite a sluggish market and waning buyer enthusiasm, we anticipate that home demand will continue to outstrip available inventory. Increasing rental costs should add to this expected development.

However, as the number of available homes increases, the demand for housing should decrease owing to affordability concerns. As a result, we are not on the verge of a housing market crash. The rate of home price growth during the two years of the pandemic was unsustainable, and higher mortgage rates combined with increased inventory will result in slower home price growth but unlikely any big price decline.

Of course, these predictions are just that – predictions. The housing market can be unpredictable, and unforeseen factors can always come into play. However, these educated guesses can give us a general idea of what we can expect in the coming years. If you're planning to buy or sell a home, it may be helpful to keep these predictions in mind as you make your plans.

As the US housing market moves forward in 2023, it will be interesting to see how the various factors impacting home prices unfold. The balance between supply and demand, affordability concerns, economic conditions, and policy changes will continue to shape the trajectory of home prices nationwide.

Whether you're a potential homebuyer, seller, or industry observer, staying informed about the latest trends and forecasts can provide valuable insights into the US housing market. By understanding these dynamics, you can navigate the market more effectively and make informed decisions that align with your goals and aspirations.

Sources:

  • https://www.zillow.com/research/data/
  • https://www.fhfa.gov/AboutUs/reportsplans/Pages/FHFA-Reports.aspx
  • https://www.noradarealestate.com/blog/housing-market-predictions/
  • https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/
  • https://www.zillow.com/resources/stay-informed/housing-market-predictions-2023/
  • https://www.corelogic.com/intelligence/u-s-home-price-insights-march-2023/
  • https://realestate.usnews.com/real-estate/housing-market-index/articles/housing-market-predictions-for-the-next-5-years
  • https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-us-national-home-price-nsa-index/
  • https://www.nar.realtor/newsroom/baby-boomers-overtake-millennials-as-largest-generation-of-home-buyers

Louisville Housing Market: Prices, Trends, Forecast 2023

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Louisville Housing Market

The Louisville housing market is a highly competitive and dynamic market, with homes receiving multiple offers and selling at a rapid pace. Louisville has a population of approximately 620,000 people, making it the largest city in Kentucky. The city is home to a diverse range of industries, including healthcare, manufacturing, and logistics.

The city's economy has been growing steadily in recent years, which has had a positive impact on the housing market. In this blog post, we will explore the current state of the Louisville housing market, including house prices, trends, and other relevant information.

Current Louisville Housing Market Trends

How is the housing market doing? The Louisville housing market is competitive, with homes receiving an average of 3 offers and selling in approximately 26 days. According to Redfin, in the past month, the median sale price of homes in Louisville stood at $230K, reflecting a 4.2% decrease from the previous year.

The average time a property spends on the market is 26 days, slightly unchanged from the previous year. In October, 727 homes were sold, indicating a decrease from 811 homes sold during the same period last year.

The median sale price in Louisville is 44% lower than the national average, making it an attractive market for potential buyers. Additionally, the overall cost of living in Louisville is 3% lower than the national average.

Homes in the area often receive multiple offers, with average sales occurring approximately 2% below the list price, going pending in around 23 days. Comparatively, nearby cities exhibit varying degrees of competitiveness, with some being very competitive.

The sale-to-list price ratio for all home types in Louisville is 98.2%, highlighting a robust market where homes typically sell close to their list prices. This ratio provides insights into the negotiation dynamics between buyers and sellers in the area.

Considering nearby cities? Louisville is surrounded by various housing markets, including Lyndon, Mount Washington, New Albany, Pewee Valley, Hurstbourne, Crestwood, Shepherdsville, Jeffersontown, Sellersburg, and more.

As of October 2023, the Louisville housing market presents both challenges and opportunities for homebuyers and sellers alike. Understanding the competitive landscape, price trends, and migration patterns is essential for making informed decisions in this dynamic real estate market.

Louisville Real Estate Market Forecast 2023-2024

According to statistics compiled by NeighborhoodScout, home appreciation rates in Louisville have been near the national average over the past decade. Real estate appreciation rates in Louisville have tracked to near the national average over the last ten years, with the annual appreciation rate averaging 5.75% during the period.

According to the data by Zillow, the Louisville housing market reflects a robust performance, with the average home value standing at $231,567, marking a significant 4.3% increase over the past year. Impressively, homes in Louisville are going to pending status in approximately 7 days, showcasing the high demand in the area.

As of October 31, 2023, the inventory consists of 1,960 homes for sale, with 921 new listings added during the same period. The median sale to list ratio, as of September 30, 2023, is 1.000, indicative of a balanced market. The median sale price and median list price stand at $240,750 and $256,300, respectively. Notably, 35.7% of sales are over the list price, while 42.1% are under the list price, underscoring the dynamic nature of the market.

Market Forecast for 2023 and 2024

The Louisville MSA Housing Market Forecast for 2023 and 2024 indicates interesting trends. As of October 31, 2023, the forecast predicts a marginal increase of 0.1%, but by 31st January 2024, it is expected to stabilize at 0%, followed by a slight decline of -1.2% by 31st October 2024. This forecast suggests a cautious approach for potential buyers and sellers in the Louisville MSA.

MSA stands for Metropolitan Statistical Area. In the context of Louisville, KY, it refers to a region including the city and its surrounding communities that interact socioeconomically. The Louisville MSA comprises multiple counties, and its housing market is substantial. The size is evident in the diverse range of listings, with a current inventory of 1,960 homes for sale and 921 new listings added, reflecting the vibrancy of the housing market.

Is It a Buyer's or Seller's Housing Market?

As of the latest data, the Louisville housing market appears to be fairly balanced, with a median sale to list ratio of 1.000. This suggests an equilibrium between buyers and sellers, creating a market that is neither distinctly favorable to buyers nor sellers.

Are Home Prices Dropping?

Contrary to a drop in home prices, the Louisville housing market has experienced a 4.3% increase in the average home value over the past year. This upward trend indicates a strong demand for homes in the area.

Will This Housing Market Crash?

The forecast for the Louisville MSA housing market shows a modest increase, followed by stabilization and a slight decline. While it doesn't predict a crash, it does suggest a potential shift in the market dynamics. Stakeholders should monitor these trends closely for informed decision-making.

Louisville Real Estate Market Forecast 2023-2024
Source: Zillow

Louisville Real Estate Investment Overview

Are you planning to buy a rental property for sale in Louisville, KY to get some cash flow going into your account? Louisville is making a splash in the real estate world. It is one of the best markets for rental property investors in the country. Here are a few observations and suggestions if you are contemplating buying an investment property for sale in the Louisville real estate market.

Louisville Real Estate is Affordable

Louisville's real estate market offers opportunities for investment, but whether it is considered affordable depends on various factors and individual financial circumstances. While the market has seen rising home values, it still remains relatively affordable compared to many other major metropolitan areas. Investors can find properties at various price points, and the potential for long-term appreciation is promising. However, the affordability of an investment in Louisville depends on your budget, investment goals, and market conditions at the time of purchase.

The current metro area population of Louisville in 2022 is 1,107,000, a 0.82% increase from 2021. The metro area population of Louisville in 2021 was 1,098,000, a 0.83% increase from 2020. The metro area population of Louisville in 2020 was 1,089,000, a 0.74% increase from 2019. Kentucky's Unemployment Rate is at 3.90%, compared to 4.00% last month and 4.70% last year. This is lower than the long-term average of 6.66%.

Louisville has a nearly one billion dollar, twenty-year plan to redevelop west Louisville. About a third of that money will be spent in the Russell neighborhood. This means that investors in the Louisville real estate market know where new infrastructure, amenities, and housing will be built. They can buy up properties now to renovate and flip later or rent out at a premium.

Lack of Supply in the Middle Market Is Driving Up Prices

The Louisville real estate market has a broad selection of affordable properties. A few luxury properties are coming onto the market. Where demand is greatest and supply is limited is the middle of the market. Both first-time home buyers and empty nesters are looking for properties priced between $100,000 and $300,000. Yet supply is so short that there are bidding wars on properties in this price range. If you can buy affordable properties and either renovate them or expand them, you could reap a significant profit.

There is a sizable Rental Market

As the largest city in the state, it is logically the home of multiple universities. The University of Louisville is home to around five thousand scholars. The Jefferson Community and Technical College have around three thousand students. Sullivan University educates another 1500 students. There are several private universities in the area such as Bellarmine University, Boyce College, Indiana Wesleyan University’s

Louisville campus, Louisville Bible College, McKendree University, and Spalding University. These schools provide a diverse market for investors in the Louisville housing market. Fort Knox is one of the largest military facilities in the United States, and it is located in the Louisville, Kentucky real estate market. It brings around twelve thousand jobs to the Louisville metro area. Louisville itself has a MEPS base, an army reserve training facility, and a U.S. Navy facility.

As of September 2023, the average rent for a 1-bedroom apartment in Louisville, KY is currently $1,110. This is a 1% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Louisville increased by 19% to $950. The average rent for a 1-bedroom apartment increased by 7% to $1,110, and the average rent for a 2-bedroom apartment increased by 4% to $1,249.

It Is Landlord Friendly

Property owners profit from their property in two ways. One is by selling the property for a profit. The other is by receiving rent for the property. States that give preference to the tenant over the landlord make it hard to receive the rental income you were expecting; in these states, you risk losing money if you have a non-paying tenant that costs thousands of dollars to evict, too. On the other end of the spectrum, Kentucky is a landlord-friendly state.

The state of Kentucky allows landlords to file an unconditional quit notice if a tenant has been late on rent once in the past six months. If someone has failed to pay their rent at all, the tenant can be evicted rather quickly. The state’s laws say seven days to remedy or the quit notice can be filed. The landlord can refuse to “cure” it by accepting past due payments in these cases.

Kentucky is unusual in allowing landlords to hold deposits up to sixty days as part of its laws, though other states don’t address security deposit returns. However, a move-out checklist itemizing damages and charges against the security deposit is required. Tenants can deduct rent for repairs only if the expense is minor and the landlord doesn’t address the issue within two weeks. Someone cannot refuse to pay rent claiming they fixed a bunch of little things.

There are no statutes addressing rent increase notices or rent grace periods. Landlords can recover court and attorney’s fees if a tenant must be evicted. And if the tenant is allowed to live there as part of their job and quits the job, they can be evicted immediately.

Louisville Is Encouraging AirBnB Where It Helps Tourism

The Louisville real estate market isn’t as open to short-term rentals as some places, but Louisville is making concessions to tolerate AirBnB and other short-term rentals where it can help both local property owners and area tourism. For example, they plan to allow short-term rentals in industrial and commercial neighborhoods like Butchertown.

Demand for short-term rentals downtown has caused some property developers to devote condos solely to short-term use, and the city allows it. Conversely, all short-term rentals must be registered with the city, or else you have to pay a fine. There are limits on how many people can stay in a property and property owners have to pay a local “bed tax” of nearly 10%.

Conclusion

The Louisville real estate market provides a steady rental market made up of several, independent populations. It combines slow population growth with a healthy market turnover to yield several opportunities for redevelopment or rent. The Louisville rental market is a stellar one. Buying an investment property is different than buying an owner-occupied home. The investment properties are designed to make money as rentals, which means you must look at it solely as an income-producing entity just like any other business.

Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities.

Apart from the Louisville real estate market, you can also invest in Pittsburgh, PA. The Pittsburgh real estate market is seeing an incredible renaissance, unlike many other Rust Belt cities. It is attracting new residents and redeveloping its downtown. And it is an excellent place to invest in real estate while it is still in the early stages of its rebound.

Huffington Post gave Pittsburgh the seventh slot on the top ten places to be a landlord. They used the average three-bedroom rent of $991 a month and median home price of $105,700 to get a gross rental yield of 11.3%. The highest grossing rental market was 15.3%, but it is rare for cities to achieve that rate, much less sustain it.

Pittsburgh has been recognized as one of only four metropolitan areas out of 200 studied by economists at Realtor.com currently sustaining an optimal balance between supply and demand. This means that it’s simultaneously a good market for both buyers and sellers, as there is no dearth of affordable properties available on the market and values are steadily increasing.

Another market that we suggest for savvy investors is the housing market in Boston, MA. Boston is the top market where real estate investments are safe and have high rates of return. Airbnb rentals are the best option for real estate investing in Boston. The Boston real estate market sees steady population growth, faces limited supply, and can’t go vertical. This means that those who invest in the Boston real estate market will see decent cash flow from nearly any property and guaranteed appreciation.

For most people, Boston is a high-priced real estate market, though it isn’t as expensive as Washington DC, San Francisco, or New York City. Greater Boston is still an expensive place to buy a house, but the years of relentless price increases may be nearing an end. Because of the large number of students, and college and university faculty, it is a no-brainer for savvy investors to invest in a rental property in Boston. Rental property in Boston is guaranteed to get a lot of demand from tenants – whether an apartment or a condo or a single-family home.

The Boston real estate market and its environs include a whopping hundred universities, colleges, and trade schools. There are more than 150,000 college students in Boston and Cambridge alone. You could buy properties across the Boston real estate market and cater to students, and your market is so diverse that you’ll always see demand.

Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill up the form given here. One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.

References

Market Data, Trends, And Forecast
https://www.zillow.com/Louisville-ky/home-values
https://www.neighborhoodscout.com/ky/louisville/real-estate
https://www.redfin.com/city/12262/KY/Louisville/housing-market
https://www.realtor.com/realestateandhomes-search/Louisville_KY/overview

Student market
https://en.wikipedia.org/wiki/List_of_schools_in_Louisville,_Kentucky

Military
https://militarybases.com/kentucky

Landlord friendly
http://www.landlordstation.com/blog/top-landlord-friendly-states
https://www.landlordology.com/kentucky-landlord-tenant-laws

Downtown redevelopment
https://www.wdrb.com/news/russell-neighborhood-residents-view-million-redevelopment-plans/article_6fe0cb1e-982d-543f-9887-1dd102d21f64.html

Short term rentals
https://www.courier-journal.com/story/life/home-garden/2018/08/16/airbnb-mania-causing-business-boom-louisville/932815002
https://www.courier-journal.com/story/news/politics/metro-government/2018/08/14/louisville-plans-crack-down-airbnb-operators/989449002

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