Growth Markets Archives - Norada Real Estate Investments

Chicago Real Estate Market 2020 Overview

September 22, 2020 by Marco Santarelli

We'll be discussing the latest Chicago real estate market trends. The Chicago housing market recorded positive month-to-month and year-over-year increases in both prices and sales, reversing two months of declines in sales, a great sign that the market is bouncing back from the COVID-19 pandemic. In the Chicago Metro Housing Market, which comprises of the nine counties, home sales (single-family and condominiums) were up 12.0 percent from July 2019 sales. The median price in July was $277,000 in the Chicago Metro Area, an increase of 6.9 percent from $259,000 in July 2019, according to Illinois Realtors.

The city of Chicago saw year-over-year home sales increase 0.6 percent with 2,725 sales in July, compared to 2,708 a year ago. The median price of a home in the city of Chicago in July was $330,000, up 7.5 percent from July 2019. The City of Chicago’s inventory is down 12.0%, from 10,343 homes in July 2019 to 9,104 homes in July 2020. The month’s supply of inventory declined 8.5%, from 4.7 in July 2019 to 4.3 in July 2020.

What are the predictions for the coming months? The median price forecast for Chicago Primary Metropolitan Statistical Area is 7.2% in August, 8.9% in September, and 6.7% in October. The sales forecast for August, September, and October suggests an increase on a yearly basis and a decrease on a monthly basis for both Illinois and the Chicago PMSA (source: Illinois Realtors®).

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San Diego Real Estate Market & Investment Overview 2020

September 21, 2020 by Marco Santarelli

Home prices are rising across the Southern California housing market despite the pandemic. San Diego area is also a strong seller’s real estate market. For sellers, now is the opportune time to put their San Diego home up for sale. Inventory is low, prices are rising, and pent-up demand alongside low mortgage rates has the market flooded with homebuyers. The pricing of homes is trending higher and is more attractive for sellers in the current phase. The shortage of supply and an increase in the demand for housing will push the prices higher in the San Diego housing market.

In August 2020, sales of single-family homes increased by 10.2% y-o-y, affirming that there is a strong demand among homebuyers in the area. Pending sales have also increased over the last 3 months in San Diego County. Home prices across the San Diego metro area are rising steadily in 2020. Due to the pandemic, it was expected that the home prices would remain flat or drop a bit in the coming months to favor buyers. That was a much-awaited condition for homebuyers who cannot afford a home in the median price. But that's not the case.

The median sold price of single-family homes increased by a whopping 12.7% year-over-year to $650,000. Earlier in July, the median price had increased by 10.6%. The San Diego home prices have increased by 6% from June to July of 2020. According to the latest San Diego real estate market update for August 2020, inventory of single-family homes has dropped 51.2%. That is one reason we see a drop of 2.2% in sales as compared to the previous month (July). There is a severe shortage of available properties for sale in the San Diego real estate market.

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Kansas City Real Estate Market & Investment Overview 2020

September 17, 2020 by Marco Santarelli

The Kansas City real estate market is very hot and in many ways the envy of housing pundits on both coasts. Despite the COVID pandemic causing huge unemployment and impaired consumer confidence in real estate buying and selling, the Kansas City housing prices are soaring. Based on the FHFA all-transactions home price index, typical home values in the Kansas City MSA in the 2nd quarter of 2020 rose by 4.8 percent compared to the same quarter in 2019.

Home sales in the Kansas City area totaled 4,130 units in August, down 2.9 percent from the same month in 2019. Year-to-date, 27,424 homes have sold, down from 27,712 over the same period in 2019. The sale price of homes in the metro also continues to rise and sellers are still getting more for their houses than they did this time last year. The average price of homes sold in August was $284,480, compared to $253,090 in August 2019. Homes that sold in August were on the market an average of 39 days and sold for 99.4 percent of their original asking prices, according to the data released by the Kansas City Regional Association of Realtors.

The Kansas City real estate market was already competitive before the coronavirus, with Kansas City home prices rising faster than most U.S. cities. A lack of inventory across the metropolitan area is the biggest driver of the rising prices. But in Kansas City, there is only about one month of supply of available homes for sale — which an indicator of Kansas City being a strong seller's real estate market. Zillow research shows Kansas City, Cincinnati, Columbus, and Raleigh among the nation’s fastest-moving large markets with sellers typically accepting offers after only four days on the market.

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Dallas Real Estate Market 2020 Overview

September 14, 2020 by Marco Santarelli

The Dallas housing market has recovered from the impact of the Coronavirus pandemic. The real estate sales showed signs of recovery in July. The number of homes sold within Dallas County has shown a double-digit increase of 20.7% as compared to last year. The median price also increased by 15.3% to $282,500. There's about a 2.7-months supply of homes for sale in Dallas County, which is well below what’s considered to be a balanced real estate market. From this standpoint, the Dallas real estate market still favors sellers over buyers.

The Metro Dallas houisng market also faces a shortage of available homes with just 2.5 months of supply. The demand and sales have been climbing at a feverish pace in the Dallas real estate market for more than two years now. The market started cooling off in the last quarter of 2019 but it is beginning to heat up now. The latest housing data by Realtor.com shows that in August 2020 the Dallas housing market was a seller’s market, which means there are roughly more buyers than there are active homes for sale.

The median list price of homes on their platform was $400K in August 2020, flat year-over-year. The median listing price per square foot was $214. On average, homes in Dallas, TX sell after 58 days on the market. The trend for median days on market in Dallas, TX has gone down since last month, and slightly down since last year.

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Colorado Springs Real Estate Market & Investment Overview 2020

September 11, 2020 by Marco Santarelli

The Colorado Springs housing market continues to break all the records even when the COVID pandemic has not ended. The real estate market has reached record high prices with a lack of homes for sale. The Colorado Springs real estate market is facing a severe lack of inventory, with 50% fewer homes available for sale than at this same time last year. It is a hot seller's real estate market. As of August 2020, the “Months Supply of Inventory” is 0.8, down by 55% from last year.

In August, home sales in El Paso county increased by 13.3% while new listing dropped by – 9.6% year over year. The median sales price has reached a new peak of $380,000, which is + 15.2% higher than last year. Total available properties for sale have shrunk by – 53.5% year over year which amounts to 0.8 months of supply. The latest monthly data by the Realtor.com shows that homes in Colorado Springs sell faster than average compared to other cities in El Paso County. It takes an average of 38 days on market for a home to sell in Colorado Springs.

The median list price of homes in Colorado Springs on their platform is $350,000, trending up 9.4% year-over-year. The median listing price per square foot was $157. The median sale price was $337.5K. Ideally, a buyer would prefer a sale to asking price ratio that’s closer to 90%. The sellers in Colorado Springs have managed to hold good leverage in these negotiations in the past month. On average, they could sell homes for 100% of the asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher. The detailed analysis for the Colorado Springs real estate market (single-family homes) from April to date is given below.