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Is Real Estate a Good Investment Right Now in 2022?

October 4, 2022 by Marco Santarelli

Is 2022 a Good Time to Invest in Real Estate?

Investing in real estate can be a terrific method to build a lot of wealth right now in 2022. Think about real estate as a long-term investment as the housing market is currently out of control. Not only are property prices rising across the board, but mortgage rates have reached their highest level in almost a decade. That means now is a particularly difficult time to acquire income properties or discover cheap homes that may be refurbished and flipped for a profit.

If you have the ability to wait it out, investing in real estate may be an excellent way to amass a significant amount of money. Is it safe to say that real estate is a solid investment now that the housing market does not appear to be in a bubble? In order to provide an answer to that question, we need to take a look at the things that we are investing in first.

Real estate typically outperforms other assets in terms of value appreciation. Furthermore, it is not as susceptible to short-term volatility as the stock market. Whether you rent out an apartment or a business property for income or buy a home, you obtain a physical, useable asset. There are two methods to profit from a rental property, and purchasers should take advantage of both.

You should acquire a property that will provide you with short-term monthly cash flow while also having the potential for long-term gain. However, while deciding whether to invest or not, most investors prioritize purchasing a property with a good cash flow. A good rental property should provide positive cash flow; the more, the better.

Recent rate rises have affected home values. As homebuyers' affordability declines, many stop trying to buy. We're seeing “price lowered” banners on listings for the first time in years. There's more positive news for purchasers. 2022 is a balanced year for housing supply and demand. This is ideal for retail purchasers and rental property investors. No longer a “seller's” market. Rising interest rates raise the monthly mortgage payment, which reduces homebuyers and lowers property values.

Real estate investors want less competition and lower pricing. Real estate investing is a long-term endeavor, therefore perspective is key. In 2020 and 2021, interest rates were very low, hovering around 3%. Recent Fed policies to combat inflation have pushed up mortgage rates. 30-year fixed mortgage rates are 5.5% in July 2022. In January 2022, it was 3.4%. While it may scare some, it's crucial to see the larger picture.

A 5.5% 30-year fixed mortgage is modest compared to average yearly interest rates since 1975. Smart investors know that real estate is a long-term investment and that today's rates are still historically low. Expect rising interest rates. As of this writing, there's no end in sight to our astronomical inflation rate. In a few years, buying now may seem prudent.

Moreover, last week, mortgage rates fell. While mortgage rates are still much higher than at the start of the year, they've fallen 0.50 percent since mid-June. Last week's economic figures showed sluggish growth and rising unemployment claims. As affordability issues rise and builder confidence declines, buyer competition in the home market eases.

Despite robust labor markets and rising inflation, investors are pricing greater recession risk into medium to long-term interest rates, assuming the Fed will have to stop raising rates. This reduces longer-term borrowing rates and boosts equities prices from earlier this year's lows. The Fed hiked the federal funds rate by 0.75 percent today, as expected. Investors will be looking for hawkish or dovish statements from the Fed this week to determine interest rate forecasts.

Invest Now in Real Estate To Build Equity

There is no imminent housing bubble collapse. The monthly average rent is rising at an unprecedented rate. As a result of the Federal Reserve's quick interest rate rises, housing prices are shifting down from their 2020-2021 peaks. Investors in rental properties continue to enjoy historically low and reasonable interest rates. Real estate is a long-term investment with a favorable long-term prognosis for current investors.

Real Estate Investing makes people think of money. You will see a lot of good reasons for this. Real estate is only available in limited quantities. After all, manufacturing more land is impossible. As a result, real estate is nearly universally thought to be a sound investment. However, it must be acknowledged that conventional views on real estate are changing. This certainly has something to do with the economy. It is not uncommon to find people who are afraid of real estate investing.

They think there is no money there anymore. They may also believe that they cannot succeed without investing large sums of their money. Both of these beliefs are dead wrong. Real estate has long been viewed as a sound investment. Real estate investing is an ideal way to create wealth regardless of the market. “Down” markets may be the rifest with opportunity. If you can think creatively then real estate investing will be for you.

Real estate investing represents a perennial opportunity. However, the faces of real estate investing can be very different depending on the state of the economy and the real estate market. It is more than just buying a home or looking for an investment property. Do you think it is easy to predict success in real estate, where circumstances keep fluctuating now and then?

To some extent, the possible hindrances can be controlled with a set of ground rules which you need to implement on your next real estate investing deal. As a real estate investor, you must be aware of every opportunity. Keeping an open mind in real estate investing is vital to your success.

Successful real estate investing is a multifaceted challenge. There are many things to look at in determining where, or even if, you want to invest in real estate. First of all, you need to consider what type of real estate suits your tastes and needs. Wholesaling and buying a turnkey rental property are just a couple of the ways investors can benefit from real estate.

Would you prefer residential, commercial, industrial, retail, or mixed-use real estate investments? You also need to consider the population growth of a given area, economic development potential, property values, and trends, as well as a host of other factors. The main benefit of investing in real estate is an increase in property value due to appreciation. If it is a rental property, you can also generate a good cash flow in the form of rental income.

Click the link to read about, how difficult is residential real estate investing.

Investors are attracted to investing in real estate because the profit potential is tremendous. However, the possibility of losing it all is always lurking in the back of investors' minds because, as with any investment, there is risk involved. Therefore, you must follow some basic tips for real estate investors to avoid any pitfalls. Successful real estate investing is achievable at any point in time, despite the economic conditions. Although change is inevitable, the risk involved is manageable, as long as the investor continues to follow a few basic principles.

Here are some basic principles that you need to understand to succeed in real estate investing:

Stay creative: The best real estate investors can see potential profits everywhere. Particularly when it comes to today’s market, the ability to see creative financing is key.

Always know every one of your options: Real estate investing is by nature a high-stakes game. Never make investments that you don’t understand. Knowing what you are doing is vital to your success.

You can get better returns by investing in your education: Education and networking are very important to become successful in real estate investing. It is common for real estate investors to put money in properties that yield many times that investment. Think of your education in this way also. The ability to use a strategy correctly can yield serious returns. Of course, if you do not use important resources you may experience loss.

Fetch for a favorable market: If you are a seasoned real estate investor, you will have the importance of a healthy market environment, but if you are a newer investor, you will need to shed some light on this factor. It can go even worse if you have purchased a property with an adjustable-rate mortgage because sometimes the interest rates keep rising and you will end up paying more even if you can’t afford it. Such situations alleviate the demand for the entire real estate market in particular locations.

Potential for Negative Cash Flow: Like many other investments, real estate has the potential to create losses. Whenever you complete a deal with less money than you started with, you've created negative cash flow. And too much negative cash flow can leave you broke. So you must know how to find and analyze a good real estate investment. If this is a skill you are working on, you can reduce your risk and save some time by using the services of a real estate investment firm.

Availability of Funds: One of the primary barriers to investing in real estate is the lack of funding. Even though you can invest in real estate without using your own money, you still need to have money from somewhere. There are many creative ways of getting other people's money (OPM) to complete a transaction, and many good books have been written on the subject. One of the latest incarnations of OPM has been the use of corporate credit.

Time Constraints: Some types of investments require more time than others, for example, distressed and rehab properties. Other types of investments require you to be available during business hours. If your regular job demands most of your time, you might find it difficult to make time to invest in real estate. Understand the time involved with the various types of real estate investments so you can plan your schedule around your investing.

Need for an Exit Strategy: Before you go into a deal, you need to have a feasible plan for getting rid of your investment property. Note the word “feasible.” Your exit strategy has to be logical and doable; otherwise, it's not a very good exit strategy. Your plan may be to fix and flip the property right away, or it may be to lease and hold for 10 years.

Be sure to invest with a clear and specific exit strategy in mind. And always have a contingency plan in place in case situations come up that are out of your control. Real estate investing, like any other form of investing, has some potential risks. On the positive side, these risks are associated with the potential for high returns. But with proper planning and ongoing education, you will be successful as a real estate investor.

Real Estate Investing Myths

There are various myths about real estate investing that never seem to die no matter how much you try to kill them! Hopefully, the information provided below will help you avoid falling for these untruths.

1. You Can’t Make Money in Real Estate Without a Lot of Money

It’s true that you usually (but not always) need money to get started in real estate. However, you don’t need hundreds upon thousands of dollars to get your investment career started and moving!

As discussed in one of my other articles, one of the great benefits of real estate is “leverage”, that is, you can use very little money to buy your way into properties that will keep on appreciating over time and increasing your wealth. In effect, you have what the military calls a “force multiplier”, that is, with one effective “weapon” you can eventually conquer your piece of the real estate market.

If you are short on cash and want to invest right away then partnering up with another real estate investor may be an option to consider. Having a “cash partner” to invest with you in your deal is a quick shortcut when your only hurdle is the initial down payment.

As you can see, having a lot of money is not necessary. However, it does help because it accelerates your wealth-building plan. The wonderful thing about real estate is that you can get started by building up your cash reserves, and you can then leverage those reserves into more and different investment opportunities.

2. You Need Little to No Knowledge to Become a Real Estate Investor

Ignorance is not bliss when it comes to real estate! You can get your financial head handed to you in short order if you don’t know what you’re doing. Let’s illustrate this point with a quick example from my own experience:

When I purchased one of my first apartment buildings – a 40-unit complex – I was unaware the local gas company would reset my monthly payment plan from a regular “budget” payment to an “actual use” payment. I was shocked when I received my first gas bill for $9,000! Having known that one little fact would have saved me over $6000 and kept me in the black that month.

As you can see, you need the knowledge to get off on the right foot when buying or selling properties. It’s like a map through the “minefields” of investment; it’ll keep you safe and in one financial piece!

3. You Should Time the Market to Have the Greatest Success

While it’s true that real estate is cyclical (like the stock market), the fact is that the cycles are much slower and longer than that of securities. So, you can’t time real estate investments in the same way as you can with stocks and bonds. It’s a whole different mindset – a longer-term one, for the most part. Let me explain…

The real estate cycle typically works in this fashion:

High real estate demand creates a property shortage and higher rents, and appreciation along with it.
To meet demand, more properties are built.
The result is – overbuilding occurs, and rents and property valuation decline.
The cycle begins again.

Note: We’ll talk about the real estate cycle at greater length later in another article.

Naturally, unexpected economic influences (war, catastrophes, etc.) can influence the cycle as well. But, remember what I said before – all real estate is local! Even in a down market in, say, California, the real estate “rose” can be in the bloom in, say, Texas.

So, it’s not about timing in the larger sense; it’s about timing in the sense of finding and buying properties that meet your investment goals wherever and whenever they are. Or, as Gary Keller said in his great book, The Millionaire Real Estate Investor, “Timing isn’t about being in the right place at the right time. It’s about being in the right place all the time.”

4. Only Invest in Appreciating Markets

Many investors believe they should only invest in an appreciating market. This is simply not true! You can make money in any market and any economy.

The key is to pick the right strategy for the market. For example, if you purchased a bank foreclosure, or property from a distressed seller at a price far enough below the current market value, then you could buy in a declining market and be able to flip it for a quick profit or hold it for cash flow, assuming you bought it with the right terms.

5. Real Estate is a ‘Get Rich Quick' Investment

This is not true! However, it is the best wealth accumulator. You may not hear of too many people getting rich within one year, but you will hear of many people becoming wealthy over a few short years and certainly over the long term. Real estate is a solid “get-rich-slow” investment.

Those are only five common myths. What other myths are you aware of?

Top 12 Mistakes to Avoid in Real Estate Investing

In real estate, like many facets of life, it can oftentimes be more useful to know what NOT to do than to know what to do. Being in real estate for many years, I have seen a pattern of mistakes that most people tend to make as beginners. We have helped thousands of people invest in real estate, and of all the mistakes we've seen, the following 10 make up over 95% of them. If you're able to avoid even some of these mistakes before you invest in your first or next property, you will be far ahead of most investors out there.

The following are the top 10 mistakes to avoid in no particular order of importance because they are all important:

1. Thinking You Have to Invest in Your Backyard

Buying a house to live in is an emotional decision. You want to live near friends and family, in safe neighborhoods, close to entertainment, and your job location. Investing in real estate is a financial decision and must be treated as such. If you live in a tenant-friendly state like California, I highly encourage you to look elsewhere.

Similarly, if you live in areas like Los Angeles, San Francisco, New York City, or Seattle, consider branching out because it’s still cheaper to rent there than it is to buy. Live where you want, but invest where the numbers make sense. One must choose a geographic location to invest in based on logic, research, and numbers.

2. Not Setting Specific Investment Criteria

I can’t stress the importance of this one enough. Everyone needs a plan, because “Failing to plan is planning to fail”. Real estate needs to be an unemotional event where you stick to your criteria and stay focused. In real estate, being picky is good but being a perfectionist is unrealistic. Allow your investment criteria to tell you when to say yes and when to say no.

If you don’t have clearly defined criteria, it could result in major headaches and costly mistakes. Real estate investing is not “one size fits all,” meaning what is a good investment for you might not be for the next person. Don’t fall in love with an investment property, fall in love with your criteria and you’ll quickly realize that there’s no such thing as a “Once in lifetime opportunity.”

3. Investing in a Particular Real Estate Market Because You Have Family Nearby

This is one I hear often and sadly it gives people a false sense of security. Family and money, more often than not, complicate things rather than simplify things. Does it make sense that your brother who is a math teacher goes and looks at broken garbage disposal? Better yet, if you plan on owning this property for 10 years, how many family favors do you have stored up? Work with a professional property manager to manage your property rather than a family member that has their own life and doesn’t know a whole lot about real estate investing anyways.

4. Doing Things Simply Because “That’s the way I have always done them”

Life moves very quickly these days, and technology is only increasing this rapid rate of change. Thankfully, these changes are for the better. Eight years ago, you never would have been able to type in the address of a property you are buying on a computer and check rental comps, recent sales comps, look at aerial photos, and virtually stand in the street facing your property. My point is this: Working with an outdated CPA, not upgrading your computer or software, or not continuing to educate yourself on the changes in financing and the real estate market will hinder you from setting yourself up for financial success. Never stop learning!!!

5. Working With The Wrong People

You need to surround yourself with a trusted network of experienced professionals that have an extensive track record of solid performance. I understand people occasionally make mistakes, however, life is too short to have your retirement be the guinea pig for some “new kid on the block” company. Real estate investing demands well-educated and ethical individuals that are not just “in the business,” but are investors themselves who do more than just talk the talk.

In part 2 of the Top 10 Mistakes to Avoid in Real Estate Investing we reveal 5 more mistakes to avoid. Read on!

6. Negative Cash Flow

I’ve never met a single real estate investor in my life that said “I wish I did not have so much positive cash flow coming in from my real estate investments.” However, I have met countless investors that purchased a property with negative cash flows in hopes that the appreciation would counterbalance this negative, only to end up walking away from the property because they simply couldn’t afford it anymore.

That’s not to say that people haven’t made money investing in properties with negative cash flow, however, it’s just a lot riskier and I do not believe that risking your life savings and retirement is a good idea. It’s okay to target properties for appreciation, just make sure you also have positive cash flow each month to hold you over while you wait for the property to go up value over time. If it doesn’t cash flow with 20% down, then put 25% down.

7. Being Unorganized

Being unorganized is a very costly mistake. Many people do not take the time to track the performance of their property. This leads to poor documentation, missing numerous tax write-offs, overpaying for maintenance, and ultimately having difficulty determining how good or bad their Return on Investment (ROI) is.

Not to mention that being organized will save you countless hours when doing things like preparing for taxes and refinancing properties. Every successful real estate investor I have met that’s built a fortune over time has a very organized system for managing and tracking the performance of their real estate portfolio.

8. Not Factoring in Maintenance and Vacancy

When it comes to maintenance and vacancy in rental property ownership, it’s not “IF” but “WHEN.” This should not be a surprise to you or cause for concern. It’s just a part of real estate investing that you need to factor in when calculating your potential ROI upfront. I recommend factoring in at least 5% of your monthly gross rent for maintenance and the same for the vacancy, depending on the property location, age, and condition. This is one of the biggest mistakes people overlook in real estate investing, but also one of the easiest mistakes to avoid.

9. Thinking You Need to Buy a Primary Residence Before Owning Investment Property

The majority of the time, your primary residence is not an investment. It is a roof over your head, the home you will raise your children in, and the place you and your wife entertain friends and family. I live in Newport Beach, CA. It is not the cheapest place to live, and you can rent a place for 25% to 50% less than what you can own it for.

Sadly, many of my friends are buying condos or houses that they are not happy with simply because that’s all they can afford, but mainly all they know. They moved into this home knowing they can’t wait for the day they can move into a home they love. That just doesn’t make sense to me. Why not invest that money in real estate, make significant cash flow on the side, and rent a nicer place for less until you have enough money to buy a home that makes you happy?

Moving and selling real estate has tons of costs associated with it and should not happen often (10-15 years minimum per primary residence).

Also, keep in mind that buying a primary residence first and incurring tremendous debt could prevent you from qualifying for investment property thereafter. Conversely, buying income-producing properties first can lower your debt-to-income ratio and allow you to qualify for a larger loan on a future primary residence.

10. Not Conducting Proper Due Diligence

So many people do not read the contracts they sign or glance through them and either doesn’t understand them or overlook certain things. Know what you are signing, know the fair market value of the property, and know the rent before buying a rental property. If you can’t find the answers yourself, then ask a Professional Real Estate Advisor.

Real estate investing is not rocket science, and you don’t need to know everything there is to know before getting started. However, if you can use these 10 pieces of wisdom as the foundation of your investing journey, you should be able to join the ranks of the thousands of people who have been successful in real estate investing.

Think we’ve left out any major mistakes? Let us know! Share your comments below.

Click the link to read more about, how to be a successful real estate investor.

11. Ignoring a Buyer's Market For Real Estate Investing

The idea of putting your money into anything other than your mattress can be frightening for some. Real estate is one of the few investments that we use and need. Everyone needs a place to live and call home. And real estate has systematically and quantifiably proven to have risen in value over the decades. However, real estate should never be looked upon as an ordinary investment.

It can be scary to invest in a real estate market where prices are declining. A buyer's market is the ideal time to purchase a new home because prices are lower and there are fewer buyers to compete with. In a buyer's market, because there are so many more properties on the market than there are buyers, in other words, supply outstrips demand, and the price of a property in most areas has fallen considerably. The opposite of a buyer's market is a seller's market, a situation in which demand exceeds supply.

Right Time To Buy And Buy Cheap

Do not feel intimidated by a real estate agent who tells you that you are going to “insult” someone if you offer a low price for their property. The real estate agent wants you to spend as much as possible because their fiduciary responsibility is with the seller, and they get a commission based on the sales price. Use your head and take a look at the market.

When you invest in real estate in a buyer's market, consider the following:

Why Are They Selling?

If you're purchasing from a builder/developer then why they are selling becomes less important. But if purchasing directly from the owner in a private sale, you can find out by simply asking the seller or your agent. If the property is in a state of disrepair, chances are that there are financial problems. Don't be afraid to offer a significant amount less. If the owner is buying another home and needs to close on the first one soon, again don't be afraid to offer less than their asking price.

How Long Has The Property Been On The Market?

A few years ago, a home that was on the market for several months was either priced too high or there was something significantly wrong with the property. Today, properties stay on the market for 90 days or more in many parts of the country due to the prevailing market conditions. Avoid making a lowball offer on a property that is fresh on the market unless you know it is going into foreclosure or just about to become foreclosed upon. However, feel free to make low offers on properties that have been on the market for a month or more. Those that have been on the market for over a year are owned by people who are willing to ride out the storm and will most likely not be sold for a low price.

Is The Property In Foreclosure?

If the property is bank-owned, you should be prepared to offer a lot less than the asking price. Don't allow a real estate agent to sway you when it comes to making an offer. If they say, “I do not want to present such a low offer,” tell them that you are prepared to find someone else who will. There are many real estate agents looking for a sale, especially in today's market. If the property is in foreclosure, offer at least 20 percent below the lender's asking price.

12. Choosing Flipping Over Turnkey Rental Investment

If you have no experience in real estate investing, flipping houses can be very difficult for you. It has the potential to lose money. It needs large amounts of capital which includes everything from building permits and contractor delays to renovations and materials you had not budgeted for. These expenses quickly add up and eat into any potential profit. It is very time-intensive, you have to put in a lot of physical and manual labor, and pay high tax bills in the form of Capital Gains Tax.

On the other hand, investing in a turnkey property is much easier. It means buying a move-in-ready property that can generate an income in the form of rent. There is no doubt that investing in real estate can be a great way to generate positive cash flow every month. However, many people still find it challenging due to expenses typically associated with traditional real estate investments including property management and renovation works.

In recent years, the solution to this problem has emerged under the so-called turnkey rental properties. Why did investing in turnkey rental property become so popular? The answer is because, on top of all of the advantages it entails, investing in turnkey rental properties offers an ideal solution to investors' biggest problem: Headache. Turnkey rental properties allow investors to sit and enjoy their passive cash flows while someone else does all the hard property management work for them.

3 Basic Tips For Real Estate Investors

Here are some great tips for real estate investors to pay heed to. You will get to know what a few seasoned real estate investors have to say about investing in real estate through different market conditions and types of real estate markets.

Real Estate Investment Tips For Beginners

Sometimes real estate investing for beginners can seem a bit intimidating and it's easy to get lost in the lights and sounds of all the blogs, books, and podcasts from successful real estate investors. The single most important first step for aspiring real estate investors is to determine one’s exit strategy, according to Andy Heller, author of “Buy Low, Rent Smart, Sell High.” There are quite a few options, but the two basic strategies are to buy and hold rental properties and become a landlord, or to become a flipper and hopefully make a substantial profit upon the sale of the property.

“You need to ask yourself what characteristics will make that exit strategy work. You need to buy the right property to be successful,” says Heller, who has specialized in the Atlanta real estate market for decades.

Like any investment, real estate investing requires an action plan. “Once you decide you want to scale it, it is important to look at the funds, the time, your credit, and your long-term goals so that what you want to do is achievable and realistic,” Heller says.

His recommendation for novices is to join a local investor’s club and get to know the people there. “It’s rare that you can find somebody who can start up in real estate without some guidance. My advice to a new investor would be to join an association, find seasoned investors, buy them lunch and present your plan. Ask them to poke holes in it.”

Scott Mednick, president of OCRE forum, a real estate investor club, and founder of Marblehead Group Inc., agrees. But he also has a warning for novices looking for information on how to get started in the business.

“The other side of the fence in this business is that people get sucked into these $40,000 to $50,000 boot camps,” Mednick says. “Don’t do those. You’re going to end up buying things you don’t need. If you’re new in the business, the best advice I can give is to go to a local bookstore and read through books on real estate investing. Find the best one or two books and buy those.”

Tony Alvarez has worked in the Southern California real estate business for decades. Alvarez says all real estate investors are aiming for “that moment in time where we have accumulated enough income-producing real estate to provide us with a comfortable standard of living, regardless of economic conditions or political nonsense.”

For people new to real estate investment, Alvarez advises first determining which type of real estate investing they want to get into and why. Then they should choose a specific target market and study it intensely. Next, set a goal, form a business plan, and establish systems to achieve the desired goal. Lastly, investors should take small, common-sense steps daily toward achieving that goal, such as talking with sellers, owners, and local real estate professionals.

Tips For Seasoned Real Estate Investors

As for veteran investors, these longtime professionals have some sage advice for them as well. Heller’s advice for seasoned investors may be surprising, especially since these people are already at the top of their game.

“It’s to stay humble,” Heller says. “Humility is a huge asset and a huge skill for any businessman. In investment real estate, I see investors all the time who think they walk on water. That hurts them sometimes in the buying process, and it hurts them if they rent their properties. The lack of humility will eventually cost them money.”

Next, Heller says investors should have plenty of money put aside to act as a buffer of sorts. Once an investor has scaled out to a larger portfolio of properties, it is important to have enough cash on hand to rehabilitate 10 to 15 percent of those properties every year.

“Be prepared. Plan for the best, but prepare for the worst,” Alvarez advises. “Insurance is true asset protection. Investors should insure themselves as if the world is coming to destroy them and insurance is their only defense.”

In the end, Alvarez says true enemies to wealth creation include greed, procrastination, laziness, imagined fears, and lack of information and education, to name a few.

From a flipper’s perspective, Mednick says seasoned professionals need to stay focused on location and price. “The best advice is don’t overpay for what you’re buying, because you’ll get squeezed on the back end by buyers,” he recommends. “If you overpay and over-rehab, you’re not going to make the profit you need.”

Buyers still want a good deal in this market, so they are being pickier. They want to see more properties, and time is on their side so they are not pulling the trigger as fast. They want to make sure they have a good location.

In addition to building personal relationships with real estate professionals, potential deals can be found using online resources such as NoradaRealEstate.com, RealtyTrac.com, and Auction.com, as well as local and national listing services.

Tips For All Real Estate Investors

To Heller, the biggest appeal of investing in real estate is that there are many ways to make money in real estate by leveraging money – whether it’s the investor’s own money or someone else’s.

Alvarez says deals are still available. “Forget the past and stop waiting. Learn to look where you never have. Think ‘creating’ a deal, not ‘finding’ a deal.”

Lastly, investors should not be afraid to adopt multiple exit strategies when circumstances call for it.

How to Start Real Estate Investing as a Beginner?

Once you have gone through all the basic education and made up your mind, it is time to start your investment journey step by step. If you don’t have experience, we’ve recommended choosing a residential real estate investment. If you have experience managing commercial properties, then commercial wins over residential. If you have limited cash or low-risk tolerance, then we recommend residential real estate. Here's what you need to do to start investing in real estate in any market. These steps are mainly for residential real estate.

The initial step is finding the right location, i.e., if your location is great then your investment property will give you a good and stable return on your investment.
Before beginning this journey, you should take advice from your local real estate agents and investors. In case of any uncertainty of thought always consult real estate professionals.
You should continue finding off-market discounted properties. You should know the selected housing market inside and out. The business of real estate investing accompanies risk. Going in aimlessly and not recognizing what you are risking in detail is a brisk method to flop as a real estate investor.
Learn about the risks involved in real estate deals. Every type of deal has its risks. Rental units require management, and repairs, and sometimes delinquent renters require eviction.
Don't just grab the first investment property you find. Find various investment properties and afterward choose which suits you the best in terms of your investment goals.
You must learn to have a great comprehension of tax reductions for real estate investors because this will help you in the long run. Hire an accountant to assist you in the time-consuming task of dealing with complicated real estate taxes and exemptions. Take advantage of the expertise of professionals to make the job easier, and also educate yourself along the way.
Continuously consider various sources when looking to buy an investment property and search for the best markets and make a point to get in contact with local real estate investors.
Always check your credit report and your capacity to finance real estate investments. To be a successful real estate investor, you also need to find a good bank and loan broker. Successful real estate investors know that having good financing options is key to making any investment. It’s a good idea to build relationships with lenders (traditional banks or hard-money lenders) to move fast on getting financing. Without financing, you will drain all your savings. Lenders generally want at least 20 percent down and credit scores in the mid-700s. You need to learn how to use others' money as leverage and build up your equity fast.
Know your market and comprehend all real estate needs. A successful investor will build an extensive real estate network made up of other real estate investors, property sellers, property buyers, real estate professionals, or anyone who shares your common interest in the real estate investment niche.
Real estate investment clubs provide education resources, mentors, and networking opportunities. Join at least one real estate investment club in your area. A real estate investment club can become a great resource for buying and selling properties. If your niche is to buy rental properties, and another investor in the club is seeking to find investors for his turnkey rental properties, you can directly do business with them.
Do an appropriate screening process with tenants in case of rental property investment.
Real estate investing is a business. Begin by building up a decent business plan, specifying the subtleties of beginning and maintaining your real estate investment business, with realistic objectives over the time frame of one, three, five, and 10 years.
Start investing in single-family homes and as your cash flow and equity increase, you can move up to duplexes, triplexes, fourplexes, and eventually apartment buildings. Eventually, you can build a real estate empire and own a portfolio of residential units.
Some new investors wrongly limit their interest to real estate markets close to their homes. But often better real estate markets may be located a little further away. Always consider going out of state to invest in the best real estate markets.
To get the best help it is proposed that you hire a good and reliable real estate attorney. A lawyer can help you with understanding complicated real estate laws.
Before a new investor does anything, it is best to frame a business plan to identify risk and the investor's ability to finance the investment (flipping or renting) until the point that it is until it is stabilized or sold. The business design must likewise clarify how deals will be valued.

Conclusion

In real estate, once the market begins to bounce back, investing in real property likewise turns into an all the more engaging thought – either as a profession or an awesome side job. Like any other undertaking, however, there’s a correct way and a wrong approach. Successful real estate investors aren’t made overnight.

It’s not easy to succeed in real estate investing. Getting lucky on one investment does not amount to becoming a successful real estate investor. The only way to become a successful investor is to educate yourself and follow the path of successful real estate investors who have already made it there.

There’s an old rule in poker: if you play for 20 minutes and can’t figure out who the sucker at the table is, then it’s you. The same is valid for real estate investing. If you don’t know the metrics of your proposed real estate investment, you have almost no chance to be a successful real estate investor. To succeed in your first real estate investment, go at a moderate pace, learn much, and be ready to leave any enticing opportunity that comes your way. In short, do not make hasty decisions out of temptation. Money lost in a bad investment cannot be recovered so easily.

Contrary to what you may have heard, this is the best time to buy a property. Always do your homework and don't be afraid to invest in real estate during a recession.

Click the link to read more about, how investing in rental property works for beginners.

Manhattan Housing Market: Prices | Trends | Forecast 2022

October 4, 2022 by Marco Santarelli

Manhattan and New York City are synonymous for all intents and purposes. More than 1.6 million people live in Manhattan. In this article, our focus will be on the Manhattan real estate market trends in 2022. Manhattan is the most densely populated part of New York City’s five Burroughs, and it is the heart of the city. New York City itself is home to more than eight million people. Manhattan has long been one of the hottest property markets in the world, and this is partially due to Manhattan's insane real estate prices.

Manhattan Real Estate Market 2022 Trends

Data by Redfin shows that the median sales price of homes (all types) in Manhattan was $1,200,000, flat since last year. The median sale prices of a single-family home and a condo/co-op in Manhattan are $7,500,000 and $1,186,500, respectively. Manhattan area townhouses have a median sale price of $8,500,000, making them more expensive than single-family homes.

On average, homes in Manhattan sell after 92 days on the market compared to 139 days last year.
There were 1,133 homes sold in May this year, up from 1,152 last year.
The median days on the market are 92, down 47% from last year.
The median sales price of homes in Manhattan was $1,200,000 last month, flat since last year.
Homes for sale in Manhattan have a median listing price of $1.5M.

Upper West Side Housing Market

In May 2022, Upper West Side home prices were up 9.9% compared to last year, selling for a median price of $1.3M. On average, homes in Upper West Side sell after 89 days on the market compared to 134 days last year. There were 556 homes sold in May this year, down from 576 last year.

Upper East Side Housing Market

In May 2022, Upper East Side home prices were up 12.7% compared to last year, selling for a median price of $1.3M. On average, homes in Upper East Side sell after 95 days on the market compared to 135 days last year. There were 654 homes sold in May this year, down from 680 last year.

Manhattan Housing Sales Q2-2022

According to Douglas Elliman, the median sales price in Manhattan hit an all-time high, while the average sales price reached its third-highest level. The amount of second-quarter sales reached its greatest level since 2007. The market share of cash buyers increased to the third-highest level seen, a return from the low recorded five quarters ago.

The median sales price of co-ops reached an all-time high, marking the sixth consecutive year-over-year increase. The median sales price of condominiums also reached an all-time high, marking the third consecutive year-over-year increase. Condominium listing inventory saw its greatest first-to-second-quarter increase in at least eight years.

Indicators of the overall price trend for luxury goods continued to grow annually. The number of new development sales has more than doubled compared to the same period last year, while the number of new development listings has risen rapidly for the third consecutive quarter. The pricing trends in Manhattan continued to increase from the preceding year and pre-pandemic levels. The median sales price increased by 10.6 percent yearly to a record $1,250,000, surpassing the previous record established during the same time frame three years prior.

Although the current “Elliman Report: June 2022 New Signed Contracts” indicates a decline in newly signed contracts over the preceding several months due to rising mortgage rates, concluded sales increased by 12.2 percent to 3,834. This indicates that the current quarter is the peak season for closed sales. Nonetheless, the second quarter was the highest in fifteen years and the fourth-highest in history.

Listing inventory increased by 1.1 percent year-over-year to 7,968 but increased by 15.4 percent from the previous quarter, the largest Condo significant growth from the first to the second quarter in eighteen years. Listing inventory was 21.7% higher than the 6,546 second-quarter average of the past decade, consistent with the slowing pace of the past several quarters.

The months of supply, the number of months to sell all listing inventory at the current sales rate, was 6.2 months, 10.1% faster than the prior-year quarter but was the third straight quarter- over-quarter easing of the market pace. The market share of bidding wars fell from the prior quarter’s four-year high of 9.3% to 8.5%, with the average amount of premium paid falling to 4% from 5.3% over the same period.

After plunging to a record low of 39.3 percent in the first quarter of 2021, the market share of cash purchases increased to 52.6%, the third-highest on record and significantly above the average market share of 48.4% over the previous eight years. The increase was driven by higher-priced product sales. Ninety-nine point six percent of sales in excess of $5,000,000 were conducted using cash.

Manhattan Rental Market Trends

In the latest Douglas Elliman report, the price trend indicators in Manhattan rose to record levels. The median rent in Manhattan reached the $4,000 threshold for the first time as lease signings continue to rise. New leases expanded year over year for the third straight month while the vacancy rate remained under two percent for the sixth consecutive month. Doorman's net effective median rent reached a new high for the fifth consecutive month. Luxury price trend indicators all rose to the second-highest on record while their share of one-year leases rose to a new high, exceeding half of all new leases.

There were 4,934 new leases signed, compared to 9,491 a year prior — close to a 48% decrease.
The average rental price in Manhattan in May 2022 was $4,975, an increase of 22% from May 2021 ($4,078).
The average rental price increased by 3.2% from April 2022 ($4,822).
The median rental price in Manhattan in May 2022 was $4000, an increase of 25.2% from May 2021 ($3195).
The median rental price increased by 1.9% from April 2022 ($3925).
The current vacancy rate is 1.77%. A year ago it was 7.59%.
Listing inventory (5776) is down by 69.6% from year-ago levels (19,025).
The median rental price increased in Downtown (+28.6%), Northern Manhattan (+11.1%), and Westside (+31.3%).
The median rental price decreased in Eastside (+27.1%).

Manhattan Real Estate Investment Overview

We have already discussed the Manhattan housing market trends. Purchasing an investment property in Manhattan real estate is a little different from shopping for your car or primary residence. Manhattan has been included among the cities for real estate investment over the past few years. While you still want to get the most for your money, if you are looking to make a profit, you don’t want to buy the most expensive property on the Manhattan real estate market and expect to make a good profit on rents.

Perhaps you are looking for a slightly different hold-over, an investment property in Manhattan that you might move into or sell at retirement in the future! Either way, knowing your profit potential and purpose is the first thing to consider. Some of the best neighborhoods in Manhattan are Upper East Side, Upper West Side, Midtown East, Woodside, Brooklyn, Astoria, SoHo, Harlem, Elmhurst, Tribeca, Williamsburg, Maspeth, The Heights, Queens, Long Island City, Greenpoint, and Sunnyside.

Upper West Side offers an abundance of public green space. It is home to Lincoln Center, which hosts performing-arts institutions like the Metropolitan Opera and New York City Ballet. Further away from the city center you'll find charming Manhattan neighborhoods like Hamilton Heights and Washington Heights. Gramercy Park is one of the most beautiful areas of Manhattan.

It is located in a quiet corner and attracts fewer tourists than the nearby East Village and Soho. Battery Park is a favorite choice among families and it always ranks among the safest neighborhoods in New York City. With the newly designed Hub with 11 subway lines, transportation is very convenient from here.

Lenox Hill is a posh neighborhood on the Upper East Side. It runs from about 60th Street up to 77th Street and Fifth Avenue to Lexington Avenue. It forms the lower section of the Upper East Side, closest to Midtown. Some of the most expensive real estate in Manhattan is located in this neighborhood. The one thing about Lenox Hill that it is famous for is the hospital. Lenox Hospital is one of the best in NYC. Lenox Hill Hospital just joined forces with North Shore-LIJ Health System, which now provides a much larger hospital in NYC.

Let’s take a look at the number of positive things going on in the Manhattan real estate market which can help investors who are keen to buy an investment property in this city.

The Diverse Manhattan Housing Market

The Manhattan real estate market shouldn’t be a top spot for investment because it is so expensive or famous. Its biggest draw is the sheer size of the Manhattan housing market. You can own a variety of condos, apartment buildings, and single-family homes in your Manhattan real estate investment portfolio scattered across a wide area and still be part of the same housing market. You only have to know one set of housing regulations affecting tenant screenings and evictions.

Demographic diversity is not relevant to this discussion. The sheer variety of Manhattan real estate investment properties is. The incredibly expensive Manhattan real estate market has resulted in novel, high-density projects that offer very high rates of return. For example, the rent-a-desk concept behind WeWork has led to a rent bunk of residential communities popping up, often just down the street from the rent desk places.

You could invest in these startups or renovate commercial space to create these high-density living arrangements. New York City has also revised its rules to allow for much smaller single-resident occupancy apartments. Just make sure you get the necessary permits before subdividing an existing unit because fines can be steep.

There are a variety of rules that lead to tenants staying once they find a decent place in the Manhattan housing market. We periodically hear the stories of someone who moved into an apartment, got rent control, and stayed for sixty years. In the right circumstances, this is a boon for a Manhattan real estate investment property owner.

You don’t have to worry about vacancies. Then there’s no need to advertise the property or worry about the rules regarding such advertisements. A good tenant will pay the rent month after month. It is guaranteed cash flow, and it is profitable as long as you can keep property maintenance costs and taxes below that level.

The Long Term Real Estate Forecast

New York City has long been the biggest city in the United States in almost every way. It has the largest school district in the country. It has also garnered attention for having the most people moving out in record numbers. We have to keep this in perspective since thousands moving out every week from NYC have far less of an impact than if it were a small metro area like San Antonio.

In the short term, this creates a buying opportunity in the Manhattan real estate market. After all, prices are down. The Manhattan housing market, though, remains one of the most expensive in the world. The local leadership driving away jobs and attacking schools is contributing to this. Fortunately, it means Manhattan real estate investment properties will rebound as soon as there is a change in leadership.

The Manhattan real estate market is famous for an average one-bedroom apartment surpassing 3000 dollars a month in rent. However, you don’t have to have millions of dollars of cash on hand to consider Manhattan real estate investment. There are cheaper properties in the boroughs, and they’ll command 1500 dollars a month in rent for a one-bedroom and much more for a two-bedroom or three-bedroom apartment. And rents in the Manhattan housing market are going up faster than the rate of inflation.

The Higher Quality of Life in New York City

People may come to New York City to try to make it big on Broadway, broadcasting, or publishing. However, they only stay if it is worth their while, whether they work on Wall Street or earn a living some other way. Poor quality of life will drive people away, whether or not they have children but especially after they have children. And it is quality of life that makes the Manhattan real estate market a better play than San Francisco.

New York City has a homeless problem, but it doesn’t have poop so bad they have an app for that or needles littering the place. That will keep New York City's housing market demand strong for the long term. Stronger public transit and the number of activities available at any given time make the city more attractive to Millennials, too.

The demographic churn you see in the NYC area is young adults moving to Manhattan for work, moving to the boroughs to afford a house or larger apartment when they have children, then moving again when they are childless middle-aged adults. However, most are not fleeing the metro area after leaving the tech sector as is being seen in San Francisco.

The Relative Deal on Property Taxes

New York has one of the heaviest overall tax burdens in the United States. However, that burden varies based on the type of income you receive and the property you own. For example, co-ops are not faced with comparable property tax bills to apartment buildings. Buy a building and renovate it to create affordable, high-density housing, and you’ll be eligible for significant property tax breaks.

At the other end of the market, the luxury condo buildings going in result in relatively low tax bills for the owners on the basis of the property’s selling price, though this could still yield a tax bill far higher than what the average person could pay. Recent changes to the property tax laws that are increasing the property tax bill most will face are contributing to the flood of multi-million dollar mansions and apartment buildings by those who don’t want to pay the bill.

Conclusion

Manhattan offers incredibly dense housing, incentives for more of the same, and a large, loyal renting population. If you can afford to invest here, it can be worth the effort. Therefore, finding a good Manhattan real estate investment opportunity would be a key to your success. Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.

They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates. NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

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.

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

References

https://www.zillow.com/Manhattan-ny/home-values
https://www.elliman.com/corporate-resources/market-reports
https://www.elliman.com/corporate-resources/research-reports
https://www.redfin.com/city/35948/NY/Manhattan/housing-market
https://www.realtor.com/realestateandhomes-search/Manhattan_NY/overview
https://www.streetadvisor.com/search/neighborhoods-in-manhattan-new-york-city-new-york
https://www.cubesmart.com/blog/city-guides/nyc/5-of-the-best-neighborhoods-to-live-in-manhattan
https://www.gothamgazette.com/state/8712-an-old-unfair-system-new-york-city-s-property-tax-conundrum-part-i
https://www.citylab.com/equity/2015/05/why-billionaires-dont-pay-property-taxes-in-new-york/389886
https://www.wsj.com/articles/new-more-broad-based-real-estate-tax-hits-developers-11554303511

12 Best Personal Finance Books That Can Make You a Millionaire

October 4, 2022 by Marco Santarelli

Best Finance Books of All Time

Research shows that 88% of wealthy people devote at least 30 minutes a day to reading. If it works for them, it could work for you. For the majority of people, books are part of their everyday life. A book is like a best friend who will never walk away from you. You start with that 15 to 20 minutes of reading every day, and the next thing you know you'll be doing an hour a day because you'll be so excited about all the information that you're learning. Below, we've rounded up the 12 best personal finance books.

These are the best finance or money books of all time to help you get out of the rat race of debt and achieve the wealth that you truly deserve. These best-get-rich books of all time teach you that mastering your money has more to do with mindset and overcoming psychological barriers than anything else, and they teach you how to start thinking your way to success. A person is limited in what they can accomplish without good reading and comprehension skills. Anyone who wants to learn the art of money-making and getting success must read these best finance books of all time.

<<<Also Read: Best Real Estate Investing Books For Beginners>>>

12 Best Personal Finance Books Of All Time To Get Rich And Become A Millionaire

Being rich or poor is all about your habits. Reading many good books – is what self-made millionaires do to help increase their wealth and general outlook toward everything. These 12 books are said to be the best finance books of all time.

These finance books will help you to get rich or at least give you some knowledge as to how you can become a self-made millionaire or succeed in your ideas.

They will tone up your intellectual taste and broaden your outlook toward achieving that financial success. These books have changed the lives of millionaires and are the best financial books for beginners as well.

Here is the list of the 12 best finance books of all time that I recommend which will help you to transform your financial life and grow your wealth. Here's to a prosperous and wealthy year 2022!

1. “Think and Grow Rich” by Napoleon Hill

Journalist Napoleon Hill researched more than 500 self-made millionaires, including Andrew Carnegie, Henry Ford, and Charles M. Schwab, before releasing this 1937 best-seller.

Hill's timeless personal finance classic will help you understand that getting rich is more about mentality than anything else. He barely mentions the words “money,” “wealth,” or “finances.” Rather, he explains the psychological barriers that hold many people back from building fortunes — and teaches you how to start thinking your way to financial success.

2. “Business Adventures” by John Brooks

Rich people tend to believe starting a business is the fastest way to make money. This read, endorsed by self-made billionaires Bill Gates and Warren Buffett, will teach you just how to do that … but not the way a conventional business book does.

“Unlike a lot of today's business writers, Brooks didn't boil his work down into pat how-to lessons or simplistic explanations for success (How many times have you read that some company is taking off because they give their employees free lunch?)” Gates explains. “You won't find any listicles in his work. Brooks wrote long articles that frame an issue, explore it in depth, introduce a few compelling characters, and show how things went for them.”

Don't let the 1969 publication date throw you off. While a lot has changed in the business world since the 1960s, the fundamentals of building a strong business have not, Gates writes, adding, “Brooks's deeper insights about business are just as relevant today as they were back then.”

3. “The Little Book of Common Sense Investing” by John C. Bogle

One of the most effective ways to build wealth is to invest. At least, if you do it correctly.

Bogle, the founder of the Vanguard Group and creator of the world's first index fund, details the simplest and most efficient investment strategy: Investing in low-cost index funds.

Legendary investor Warren Buffett also says that every investor, large and small, should pick up a copy.

4. “The Essays of Warren Buffett” by Warren Buffett

If a blurb by Buffett doesn't entice you, get directly inside the billionaire's head with this collection of letters and notes written by the “Oracle of Omaha.”

The 700+ page book offers a clearer picture of Buffett's philosophies on business, investing, and life.

5. “Tools of Titans” by Tim Ferriss

What does it take to be a billionaire? Best-selling author Tim Ferriss' latest book explores the daily routines and habits of celebrities, professional athletes, hedge fund managers, and others.

Ferriss went straight to the sources and interviewed more than 200 world-class performers.

For a sneak peek, check out one, peculiar habit that the wealthiest, most successful people share.

6. “The Richest Man in Babylon” by George S. Clason

Nearly a century ago, Clason revealed the “secret” to getting rich in his 1926 personal finance classic.

It turns out that the “secret” isn't much of one. All it takes to get rich is mastering a few simple concepts, such as paying yourself first and living within your means, which Clason preaches via a collection of entertaining parables.

7. “Rich Dad Poor Dad” by Robert Kiyosaki

Kiyosaki shatters the myth that you need to earn a lot of money to get rich in this best-seller. By telling the story of two dads — his own, and the father of his best friend — he explains how to build wealth even with a small salary.

Additionally, Kiyosaki challenges the popular belief that your house is an asset, details the differences between how rich people and average people choose to get paid, and emphasizes the critical difference between an asset and a liability.

8. “The Automatic Millionaire” by David Bach

Self-made millionaire and financial advisor David Bach expose a handful of money misconceptions in his easy-to-read best-seller.

You don't need a budget, you don't need to make a lot of money, and you don't even need the willpower to accumulate a fortune, he writes.

Research shows that 88% of wealthy people devote at least 30 minutes a day to reading. If it works for them, it could work for you.

Below, we've rounded up 12 of our favorite books, from personal finance classics to new releases, to work your way through over the next 12 months. Here's to a prosperous and financially successful 2022!

9. “How Rich People Think” by Steve Siebold

When Steve Siebold started interviewing hundreds of millionaires and billionaires, he was “completely broke and searching for answers about the success I wasn't finding in the classroom,” he writes.

“What I discovered was, to get rich, I had to learn to think like a rich person. … Once I changed my thinking, the money started to flow.”

Anyone has the opportunity to build wealth, he stresses in “How Rich People Think,” and it all starts with changing your mindset. For a sneak peek, check out the number one way rich people view the world differently than the average person.

10. “Be Obsessed or Be Average” by Grant Cardone

As Siebold says, to get rich, you have to learn from those who have already done it. Self-made millionaire Grant Cardone knows a thing or two about managing money: The entrepreneur has built five companies and a multi-million dollar fortune.

In the best-selling author's latest book, he emphasizes that if you want real success, you have to be hungry, hyper-focused, and even obsessed.

While Cardone offers some contrarian advice — he discourages investing in a 401(k) plan and buying a home — his wealth-building strategies helped him go from broke at 25 to earn his first million by age 30.

11. “The Power of Broke” by Daymond John

“Shark Tank” investor and entrepreneur Daymond John turned $40 worth of fabric into a $6 billion brand, FUBU. Along the way, he's been rejected a lot and has lost a lot.

Being broke, however, offers at least one major advantage: It sparks creativity and out-of-the-box solutions, he explains in “The Power of Broke.”

Don't write off your chances of wealth and success if your bank account is low, he suggests. Use it to your advantage.

12. “You Can Negotiate Anything” by Herb Cohen

If you want to earn more in 2022, a simple yet often overlooked strategy is to negotiate your salary.

If you're nervous about approaching your boss to ask for a raise, try Cohen's best-seller. It will help you get what you want, and what you deserve.

<<<Also Read: Best Real Estate Books>>>

Austin Housing Market: Prices, Trends, Forecast 2022-2023

October 3, 2022 by Marco Santarelli

Austin's housing market is shifting. The market reflects what is happening in other major cities across the country. While activity appears to have slowed slightly in recent months, Austin's home prices are still on the rise. Home values are still increasing, albeit at a slower rate that is more typical of past trends. This is good news for homebuyers and indicates that the Austin housing market is strong because homes are still selling for close to the asking price.

The current trends indicate that a slowing growth rate in sales indicates market stabilization but the demand is still outpacing the supply in a market where housing prices have reached all-time highs. As a result, Austin home prices are skyrocketing, and buyers are bearing the brunt of the burden.

The market in Austin is by no means balanced since it still favors sellers, but buyers have greater negotiating power than at any time since the outbreak. The market has just now gotten up to three months of housing inventory (2.9 months as of August), which is still short of the 6 to 6.5 months of inventory needed to be considered a healthy market.

What's happening: According to the Austin Board of REALTORS® August 2022 report, the Austin-Round Rock MSA housing market resumed its trend toward normalization for the third consecutive month, bolstered by a more sustainable rate of price increases and an increase in available inventory. August's price rise indicates a normalization of home price appreciation that economists say is consistent with historical norms.

Active listings in the five-county area skyrocketed by 170.2%.
The housing inventory has reached 2.9 months – the highest inventory level since September 2018.
The year-over-year home price growth was less than 6% for the first time since June 2020.
The median home price increased by 5.5% annually to $496,039, setting a price record for the month of August.
In August, residential home sales declined 23% year over year to 2,924 closed sales.
Sales dollar volume declined 14.7.% to $1,844,350,661.
New listings dipped slightly at 6.2% to 4,121 listings.
Homes spent an average of 31 days on the market, the first time average days on market has topped one month since February 2018.

Austin Housing Market — Data by ABoR. Forecast by other sources.

Real Estate Trends in Travis County – August 2022

Austin is the capital city of the U.S. state of Texas, as well as the seat and largest city of Travis County, with portions extending into Hays and Williamson counties. Data by ABoR revealed that in Travis County, home sales decreased 28.9% to 1,361 sales, while sales dollar volume decreased 18.7% to $1,017,967,018. In August, the median price in Travis County rose 8.6% year over year to $570,000 as new listings decreased 10.9% to 1,885 listings and active listings ballooned 139.8% to 4,096 listings year over year. Pending sales declined 27.3% to 1,326 as monthly housing inventory increased 1.7 months year over year to 2.7 months of inventory.

According to Realtor.com, in August 2022, the median listing home price in Travis County, TX was $629K, trending up 17.6% year-over-year. The median home sold price was $576.2K. Travis County, TX was a buyer's market in August 2022, which means that the supply of homes is greater than the demand for homes.

There are 29 cities in Travis County.
Barton Creek has a median listing home price of $3.M, making it the most expensive city.
Del Valle is the most affordable city, with a median listing home price of $389.9K.
The median listing home price in Austin, TX was $649.9K, trending up 16.1% year-over-year.
The median home sold price was $1.3M.
There are 93 neighborhoods in Austin.
Zilker has a median listing home price of $1.2M, making it the most expensive neighborhood.
West University is the most affordable neighborhood, with a median listing home price of $475K.

Austin Real Estate Market Trends (Mid-Year Update)

According to the Austin Board of REALTORS® June and Mid-Year 2022 Central Texas Housing Market Report, a triple-digit gain in active listings year over year pushed housing inventory levels over 2 months.

The market is moving towards pre-pandemic sales activity and inventory.
The Austin market is by no means balanced and it still favors sellers.
Buyers have more bargaining power now than at any point since before the pandemic.
Homes still closed at over 100% of the list price on average in June.
Residential home sales declined 20.3% year over year.
There is an influx of homes on the market.
The median price rose 13%, setting a record of $537,475.
New listings jumped 19.6% to 6,160.
Housing inventory increased to 2.1 months of inventory, up 1.5 months from last June — a sign of a seller's real estate market.

More Housing Trends Across Austin MSA:

In the City of Austin, home sales in the first half of the year decreased 10.7% year over year to 5,789 sales, while the median price increased 15.1% to $610,000.

From January through June in Travis County, home sales decreased 11.4% year over year to 8,920 sales. During the same period, sales dollar volume rose 0.9% to $6,716,534,179, as the median price increased 17.2% to $597,500.

In Williamson County, home sales in the first half of 2022 decreased 6.4% year over year to 6,116 home sales. During the same period, sales dollar volume increased by 14.1% to $3,360,779,966, and the median price rose 20.9% to $495,783.

In the first half of 2022, Hays County home sales ticked down 1.4% year over year to 2,369 sales, and sales dollar volume rose 22.6% to $1,377,122,510. During the same period, the median price increased 27.1% to $445,000.

According to a new study, Austin homes are among the most overvalued in the United States. According to the study conducted by researchers from Florida Atlantic University and Florida International University, homebuyers in Austin are paying nearly 51% more than expected for houses. The only metro area where homebuyers pay a higher premium is Boise, Idaho, where homebuyers pay an astronomical 81 percent more.

When Zillow released its latest list of the top ten hottest housing markets in the United States, Austin was no longer ranked number one. Zillow previously ranked Austin as the hottest housing market but that ranking has slipped several spots for 2022. It ranks Austin at #10 now. According to Zillow's 2022 forecast, Tampa is the year's hottest housing market, with the city expected to top the list due to its relative affordability and high job growth.

Austin Housing Market Forecast 2022 & 2023

What are the Austin real estate market predictions for 2022 to 2023? Despite cooling off from its peak. Austin will remain a seller's market despite nationwide inflation and rising interest rates. The prices continue to rise across Austin MSA. The main reason is strong in-migration and a rapidly recovering local economy. According to the Census Bureau’s 2021 population estimates, Austin's population is increasing by 146 people every day. This type of expansion places immediate and substantial demands on infrastructure, especially housing.

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 well into 2022. Big companies moving here will also play into what happens to the housing market.

With an all-time high in corporate relocations, the housing demand is way up and the supply side cannot match up. All these factors indicate that this region has a higher probability of withstanding economic downturns due to the current pandemic. To determine the best local real-estate markets in the U.S., WalletHub compared 300 cities of varying sizes across 24 key indicators of housing-market attractiveness and economic strength. They looked at factors like median home-price appreciation to home sales turnover rate to job growth.

The city of Austin's real estate market came in at number 7 overall and 3rd among large cities. Boise was found to be the best market in the nation, followed by Seattle, Frisco, Nashville, and Gilbert in the top five. Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years. The typical value of homes in Austin is $686,669. Since the last decade (June 2012), Austin's home values have appreciated by nearly 194.7%.

According to their report, the value of the Austin Metro housing market grew by $141 billion, or 126%, in the past decade. In 2010, the market was worth about $111 Billion. In 2019, Austin's total housing value grew $22 billion, or 9.5%, year-over-year. Home value growth in Austing has outpaced the national average since 2010.

NeighborhoodScout's data also shows that Austin real estate has appreciated 169.47% over the last ten years, which is an average annual home appreciation rate of 10.42%. This figure puts Austin in the top 10% nationally for real estate appreciation. During the latest twelve months, Austin's appreciation rate was 26.34%.

In the latest quarter, Austin's appreciation rate has been 2.94%, which annualizes to a rate of 12.27%. Looking at these statistics, it is a no-brainer that Austin home prices are going to rise over the next twelve months. Clearly, for long-term investment, you cannot underestimate Austin. Investing in a rental property for the long-term would build your equity and also generate cash flow through rental income. If you want to increase your cash flow in 2022 or 2023, you will find great deals in the Austin real estate market.

Here's Zillow’s housing market forecast for Austin-Round Rock Metro. The Zillow Home Value Forecast (ZHVF) is the one-year forecast of the Zillow Home Values Index (ZHVI). ZHVF is created using all homes, mid-tier cut of ZHVI and is available both raw and smoothed and seasonally adjusted. Austin-Round Rock Metro's home values are expected to rise by 1.8% between Aug 2022 to Aug 2-2023.

Housing inventory remains low in many major cities across the nation, and Austin is no exception to that. According to their forecast, the supply and demand dynamics will likely push prices north again over the next 12 months but the pace of growth will be much slower (less than 5%).

Austin Housing Market Forecast — Source: Zillow

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Austin can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s unlikely to happen in the near future. The inventory in Austin MSA is still short of 3 months.

Is Austin Texas Good for Real Estate Investment?

Should you consider Austin real estate investment? Many real estate investors have asked themselves if buying an investment property in Austin is a good investment? You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2022. Let’s discuss a bit about the Austin metro area and then do a quick recap of how its housing market performed during the pandemic.

Austin is a minimally walkable city in Travis County with a population of approximately 790,195 people. It is the capital of Texas and it is growing at a fast clip. It is the fourth largest city in the state of Texas. The Austin real estate market isn’t the largest in the state of Texas, but there are several reasons to consider buying real estate in this city. The Austin housing market has gained a lot of steam, with home values almost doubling since 2010. It isn’t as big as Dallas, San Antonio, or Houston.

However, the Austin housing market is sizable – it is the eleventh largest city in the U.S. as of this writing, and it is the center of a large metro area. Austin has come up as another tech hub in the last 5 to 6 years. There are tons of high-paying tech jobs moved to Austin in the last couple of years. The Austin-Round Rock metro area is home to about two million people. Recently Austin was ranked eighth for the best real estate markets, topping all other big Texas cities.

As per Neigborhoodscout.com, a real estate data provider, one and two-bedroom single-family detached homes are the most common housing units in Austin. Other types of housing that are prevalent in Austin include duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 46% of Austin's housing units.

According to ABoR, Austin's competitive housing market is changing the landscape of traditional homeownership. More homebuyers purchase condos and townhomes to live closer to the urban core or stay within their budget. Austin has been one of the hottest real estate markets in the country for many years. It has a record of being one of the best long-term real estate investments in the U.S. over the past 10 years.

It is currently a moderate seller’s real estate market. Austin's immense population growth during the past decade has heavily impacted its real estate market. Although this article alone is not a comprehensive source to make a final investment decision for Austin, we have collected ten evidence-based positive things for investors who are keen to buy an investment property in Austin. Texas is unique for having a biannual legislature. They don’t have the state legislature in town year-round. Instead, they are only in session for several months every two years.

This leads to an influx of legislators, reporters, and lobbyists every other year. This creates a unique but predictable boom and bust for the Austin housing market in the vicinity of the capitol building. Let’s look at the state of the Austin real estate market and the factors driving the market in the short and long term.

Is Austin Housing Market In A Bubble?

Austin is one of only eight U.S. metro areas to have fully recovered in the last 10 years to pre-recession values. Would Austin remain as one of the top real estate markets in the country or would the bubble burst? Well, Austin isn’t considered to be in a real estate bubble because the demand is consistently high and inventory is very tight. This is good news for investors because you can expect steady activity and the flow of people looking for housing.

In 2019, Austin continued to rank high on “Best of U.S.” lists. There was a record number of home sales in 2019. The December and Year-End 2019 Central Texas Housing Market Report reflects a record-breaking 33,084 home sales and $13B in sales volume. According to the Austin Board of REALTORS® (ABoR), between 2010 and 2019 home sales increased by 84%. The median home price in Austin has increased from $193,520 in 2010 to $318,000 in 2019, and the market did not show any signs of slowing down from 2020 to 2021.

The price of Austin properties declined following the 2007 peak while prices remained relatively flat following the 1995 and 2000 peaks. According to a report published on Williamskw.com, Austin will remain a seller's market in 2022 despite higher mortgage rates. The National Association of Realtors (NAR) suggests a “balanced” market is between 4-6 months of inventory. The entire Austin market is around 0.5 months. Austin inventory levels did increase in March 2022, yet not nearly enough for Austin to be a “buyers” market. That is not expected to change.

As Austin is a young city by many standards, Millennials will be the largest buying force in Austin in the upcoming years. This is going to be more attractive for the areas being close to neighborhood amenities and close by shopping & hang-out spots. Real estate industry experts think that there is no bubble. Austin's economy is strong and varied. Overall there is a huge scarcity of homes for sale in Austin. It just hasn't kept up with the pace of people moving here.

Austin's Affordable Real Estate & Certain Future Appreciation

Homes in Austin are 23% cheaper than the national average. It may be the second most expensive housing market in the state with a median home price of around $461,000, but it is still far cheaper than California or New York. Buy up condos or townhomes, and you’ll be able to see a sizable return on the investment.

An author in Forbes wrote in 2016 that Austin real estate is appreciating at one of the highest rates in the state because of NIMBY-ism, a reluctance to develop the riverfront, or Texas hill country to build new homes. This has pushed development out along the highway and forced dense development in areas already zoned for housing.

This pushes up the price of existing homes, driving many in the Austin housing market to rent when they want to buy, while it guarantees capital gains for those who buy and hold property. Here are the ten neighborhoods in Austin having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

East Cesar Chavez / Holly
Chestnut
Central East Austin
Govalle
Holly West
Central East Austin South
Rosewood
Johnston Terrace
Springdale / MLK183
MLK

Cost of living In Austin

The Austin-Round Rock metro area is home to about two million people. The city is known as a haven for live music, free-thinking, and free spirits. It has a distinct culture and flavor compared to the rest of Texas, which is a mostly conservative and traditional state. According to WalletHub, among large U.S. cities, Austin ranked eighth, topping all other big Texas cities as well as San Jose, Atlanta, and Portland. Among all 300 cities, Austin still ranked a respectable No. 36 for best real estate markets.

One of the factors driving the Austin real estate market is the intangible but well-documented quality of life the city provides. In 2017, US News and World Report ranked the city first for quality of life. In 2016, Austin was ranked first on the Forbes list of Cities of the Future list. In 2017, that same magazine ranked the South River City neighborhood as one of the best for Millennials. WalletHub ranked the city sixth in their list of best places to live in 2017. In 2012, the FBI ranked Austin as one of the safest cities in the country.

Aside from high housing prices, the cost of living in Austin is relatively affordable. Overall, the cost of living for Austin is very reasonable. At three percent below the national average cost of living, moving to Austin may be an economical choice for you. One of the most interesting factors in the cost of living for Austin is that the cost of housing is 15 percent below the national average.

According to Sperling’s Best Places, grocery costs in Austin are slightly below the national average, with a rating of 89.1 against the U.S. average of 100, meaning it is about 11 percent lower than the national average on groceries.

The sales tax rate in Austin is 8.25 percent. There are no income taxes in Texas. Schools are largely funded through property taxes, which rise along with home prices. As home prices continue to skyrocket and people are increasingly forced to move to the distant suburbs to find affordable housing, a massive reworking of Austin’s building codes, known as CodeNext, promised to deliver some relief.

The median salary in Austin, TX is $51,596 and it is the 108th most expensive city in a database of 232 cities by NerdWallet.com. For a 2-bedroom apartment, the median rent per is $1,184. The median price for a 3/2 bedroom house is $276,634. Food and entertainment costs in Austin are reasonable. Redwood Austin is the area with the lowest cost of living.

Areas With The Lowest Cost of Living in Austin – (List by Niche.com & prices by Livability.com)

Redwood, Texas – Located in Guadalupe County. The median income in Redwood, TX is $47,778 and the median home value is $54,700.
Lockhart, Texas – Located in Caldwell County. The median income in Lockhart, TX is $48,884 and the median home value is $115,400.
Martindale, Texas – Located in Caldwell County. The median income in Martindale, TX is $43,929 and the median home value is $151,200.
Uhland, Texas – Located in Hays County. The median income in Uhland, TX is $40,662 and the median home value is $78,100.
Taylor, Texas – Located in Williamson County. The median income in Taylor, TX is $42,793 and the median home value is $116,600.
Lago Vista, Texas – Located in Travis County. The median income in Lago Vista, TX is $75,126 and the median home value is $189,400.
Elgin, Texas – Located in Bastrop County. The median income in Elgin, TX is $50,369 and the median home value is $104,000.
Hornsby Bend, Texas – Located in Travis County. The median income in Hornsby Bend, TX is $49,077 and the median home value is $123,000.
Round Rock, Texas – Located in Williamson County. The median income in Round Rock, TX is $72,412 and the median home value is $179,900.
Wimberley, Texas – Located in Hays County. The median income in Wimberley, TX is $59,167 and the median home value is $214,600.

Austin's Massive Student Population Propels The Rental Investment

Many people want to invest in the Austin real estate market because there is a massive student population that will rent properties for a premium if they’re within easy commuting distance of the University of Texas Austin campus. That school alone has more than 40,000 students. The Austin community college hosts about as many students as UT Austin. Huston Tillotson University, Saint Edward’s University, and National American University are also located in this city.

Positive Demographic Momentum of Austin: About half of Austin’s population is between 18 and 44, though that figure is skewed by the large student population. However, the reality is that many college graduates choose to stay here because of the abundant, well-paying jobs. After all, Austin has the highest per capita of high-paying jobs of any Texas city. This helps explain why the Austin housing market is growing at the fastest rate of any major city in Texas. Many of these young adults are starting their families here, creating certain future demand for housing in the Austin real estate market.

Rental Market Statistics: Before the pandemic, the average rent for an apartment in Austin was growing at 5% annually (Source: RENTCafe). 48% of the households in Austin are renter-occupied which is a significant population. More than 65% of the apartments can be rented for $1,500 or less. Around 20% of the rental apartments fall in the price range of $1,500 to $2,000 while only 10% of the apartments fall in the rent price range of $2,000 or more.

The average size for an Austin, TX apartment is 864 square feet with studio apartments being the most affordable. 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage.

As of October 03, 2022, the average rent for a 1-bedroom apartment in Austin, TX is currently $1,690. This is a 13% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Austin decreased by -11% to $1,250. The average rent for a 1-bedroom apartment increased by 2% to $1,690, and the average rent for a 2-bedroom apartment increased by 3% to $2,125.0

The Zumper Austin Metro Area Report analyzed active listings across 7 metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Texas one bedroom median rent was $1,160 last month. Austin was the most expensive city with one bedrooms priced at $1,650 whereas San Marcos ranked as the most affordable city with one bedrooms priced at $1,130.

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.

Here are the best areas to invest in a rental property in the Austin Metro Area. Most of these places have the same things in common, including rising rents and increasing property values. The Most Affordable Neighborhoods in Austin are University Hills where the average rent can go for $795/month, Heritage Hills, where the average rent can go for $795/month, and Windsor Hills, where the average rent can go for $833/month.

Where are rents growing fastest in Austin Metro Area (Y/Y%)

San Marcos had the fastest growing rent, up 21.5% since this time last year.
Austin was second with rent climbing 20.4%.
Cedar Park ranked as third with rent increasing 20.3%.

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

San Marcos had the largest monthly rental growth rate, up 5.6%.
Pflugerville was second with rent increasing 1.4%.
Austin ranked as third with rent increasing 0.6%.

Austin Is The Silicon Prairie

Austin Texas has been nicknamed Silicon Hills and Silicon Prairie because they’ve attracted so many high-tech employers. This has resulted in an active upscale Austin real estate market. Austin’s GDP, which grew 117% over the last 20 years, helped the real estate market recover from the recession.

The closest metro to see this type of growth was Silicon Valley, which grew its GDP by 99% during the same period. Major local employers in Austin include IBM, Amazon, Apple, Cisco Systems, and many semiconductor manufacturers. There are more than 3300 tech companies in the region and more than 100,000 tech workers all competing for homes in the Austin real estate market.

One of the long-term strengths of Austin is its diverse economy. The Austin real estate market dipped after the layoffs of the Dot-Com boom. They decided to solve the problem by encouraging medical and biotech employers to relocate to the area, too. As of this writing, there are 85 biotech and pharmaceutical companies in Austin.

Austin is a Relatively Friendly City for Landlords

Texas, in general, is very landlord-friendly, though cities can have their own, stricter ordinances. Texas doesn’t specifically let tenants withhold rent for failure to provide essential services. You can evict someone for nonpayment of rent after three days. Texas doesn’t set a limit on security deposits.

Texas doesn’t require a minimum time frame before you increase the rent. For major lease violations, you can terminate the lease then and there and give them three days to vacate. Knowing you won’t spend months trying to evict a non-paying tenant is a good reason to consider the Austin real estate market or another Texas housing market over more liberal cities.

The Excellent Tax Environment

Texas’ property taxes may be high, but this is offset by the lack of a state income tax. There is, overall, a low state and local tax burden for investors. That makes this a great place to buy a home and rent it out.

Texas Real Estate Investment Opportunities: Where To Invest?

With Austin becoming a more diverse city every year, there are plenty of opportunities to take advantage of – from buying new homes to different investment options in the Austin real estate market. Austin is a leader across the country with jobs and when you combine that with home prices not as drastically increasing, you'll get a real estate market that many others envy.

Good cash flow from Austin investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Austin in a growing neighborhood would be key to your success.

As with any real estate purchase, act wisely. Evaluate the specifics of the Austin housing market at the time you intend to purchase. When looking for the best real estate investments in Austin, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing.

Some of the popular neighborhoods in and around Austin are Northwest Hills, Downtown Austin, West Lake Hills, Brushy Creek, Barton Creek, Spicewood Summit, Mueller, South Austin, Hyde Park, Windsor Park, Crestview, North Austin, Allandale, Shady Hollow, Rollingwood and Steiner Ranch.

There are around 75 neighborhoods in Austin. Tarrytown has a median listing price of $1.5M, making it the most expensive neighborhood. West University is the most affordable neighborhood, with a median listing price of $325K. (on Realtor.com).

Downtown is where the city's high-rise buildings are located, as well as being the center of government and business for the region. Downtown Austin is expanding and the residential options are increasing.

The cost of real estate might be the highest in Austin, but residents live within walking distance of everything they need. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

Apart from the Austin real estate market, you can also invest in the housing market of Houston, TX. If you are a home buyer or real estate investor, Houston has a track record of being one of the best long-term real estate investments in the nation through the last ten years.

The Houston Real Estate Market forecast is good, and current housing prices are relatively low, so if you want to get on board the Houston real estate investing then now would be a great time to do so.

The Houston metro area offers great opportunities for investors who are looking for a stable market that offers both cash flow and equity growth at a price that is STILL well below their replacement value.

The El Paso real estate market is another hot market to invest in. El Paso real estate market was ranked 4th in Trulia’s hottest real estate markets to watch in 2018. El Paso’s strong job growth, affordability, low vacancy rates, and high population of young households were pivotal in the ranking process.

The cost of living in El Paso is lower than the national average, while the cost of housing is well below that of other major metropolitan areas, including Houston and Austin.

The Central, Cielo Vista, and Mesa Hills areas offer more affordable rental properties for sale, while neighborhoods in the northwestern and eastern parts of the metro area have some of the more expensive housing inventory. The amount residents spend on everyday expenses, such as food and transportation, is slightly less than what the average American pays.

The next one is the San Antonio real estate market. The median home value in San Antonio is $184,322. San Antonio home values have gone up 4.8% over the past year and Zillow predicts they will rise 1.9% by Dec 2020. For those who want to invest in rental real estate, the San Antonio real estate market is an ideal location because of its outsized military presence.

Fort Sam Houston is located inside the city limits. Lackland Air Force Base, Randolph Air Force Base, Camp Bullis, and Camp Stanley are located in the immediate vicinity. This means that there is a large population that will almost always rent because they don’t know where they’ll be sent on their next assignment.

San Antonio has a dearth of affordable housing because demand is so much greater than the supply. This has created a large number of renters who need to pay quite a bit to rent apartments or single-family homes. We know there is a lack of housing relative to demand when a balanced market has a 6 month home inventory and San Antonio has only a two-month inventory.

How can we not mention Dallas on this list? The Dallas housing market 2020 is shaping up to continue the trend of the last few years as one of the strongest markets in the United States. Despite some fluctuations in the market, demand and sales have continued to climb at a feverish pace for more than two years and show no signs of stopping.

Dallas’s local economy is a mix of aerospace, computer chips, telecommunications, transport, energy, and healthcare sectors and the Finance and Business Services. These sectors are all providers of good wages which allows for a strong market for Dallas investment properties.

Dallas’s population has grown at twice the national rate for years now and this pushes the prices of Dallas investment properties higher due to builders not being able to keep up.

Dallas’s housing prices have increased 29% over the last three years, even with these increases in home prices, they are still competitive for investment properties and you can expect further increases over the years. If you want to buy an investment property in Dallas, don’t wait around, go ahead and do it.

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

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

Not just limited to Austin or Texas but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Austin turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

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

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

References

Market Data, Reports & Forecasts
https://www.abor.com/new-center/market-stats
https://www.zillow.com/austin-tx/home-values
https://www.realtor.com/realestateandhomes-search/Austin_TX/overview
http://austin.culturemap.com/news/real-estate/08-30-18-austin-home-foreclosures-rise-report

Foreclosures
https://www.realtytrac.com/statsandtrends/tx/travis-county/austin

Apartment Prices & Trends
https://www.rentcafe.com/average-rent-market-trends/us/tx/austin/
https://www.rentjungle.com/average-rent-in-austin-rent-trends/

Reasons to consider investing in Austin
https://www.austintexas.gov/invest-here
https://www.usnews.com/best-colleges/university-of-texas-3658
https://www.collegesimply.com/colleges/texas/austin/four-year-colleges/
http://capstonecapitalusa.com/the-most-friendly-8-landlord-states
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renter
http://austin.culturemap.com/news/real-estate/09-11-18-best-real-estate-markets-in-us-austin-wallethub

Is Austin In A Bubble
https://www.quora.com/Is-the-Austin-real-estate-market-a-bubble-If-so-when-will-it-burst
https://www.williamskw.com/blog/5-Predictions-for-the-Austin-Real-Estate-Market-in-2018/53486

Cost of Living
https://livability.com/tx
https://www.tripsavvy.com/austins-cost-of-living-255111
https://www.bestplaces.net/cost_of_living/city/texas/austin
https://www.nerdwallet.com/cost-of-living-calculator/city-life/austin
https://www.niche.com/places-to-live/search/suburbs-with-the-lowest-cost-of-living/m/austin-metro-area
https://www.forbes.com/sites/scottbeyer/2016/08/31/why-is-austins-housing-more-expensive-than-other-texas-cities/#10556d3d6121

Irvine Housing Market: Prices, Trends, Forecast 2022-2023

September 29, 2022 by Marco Santarelli

Real estate was booming in California but the market is now cooling off as mortgage rates continue to rise. This cooling is beneficial for the health of the real estate market since the record-breaking price increase and hyper-demand were unsustainable. The Irvine housing market also saw a massive decline in sales in August (-52.4%) while the median home price reached $1.68M, a +16.4% change from last year.

Irvine, California is overshadowed by Los Angeles located forty miles to the northwest. It is, however, a suburb of that rapidly expanding housing market and a niche housing market in its own right. Irvine, California is a one-hour drive from Los Angeles if the highways aren’t snarled with cars. The Irvine housing market is certainly part of the L.A. metro area, though many residents tend to work in Orange County.

The city of Irvine is home to around three hundred thousand people. We won’t say that cities like Anaheim are suburbs of Irvine since they’re as large (or larger) as Irvine itself. These LA suburbs have seen significant growth as people move out of the overpriced and often dangerous LA area while trying to maintain quality of life and proximity to high-paying jobs.

Inventory is low and prices are rising. There is no doubt that it is in the midst of a seller's market. Homes are selling in days, and sellers are commanding premium prices for their properties due to their high demand. Are you interested to know how competitive the Irvine housing market is? Let us discuss up-to-date information on market conditions, price movement, and real estate trends, among other things.

Irvine Housing Market Trends

Irvine is a city in Orange County, California. It is the most expensive market in Southern California. It has become a melting pot for the Southern California community. The Irvine real estate market has always done very well because of its easy excess to all major freeways and highways with lots of options for public transportation.

The CAR's August 2022 report indicates that the median sale price of single-family homes in Irvine is $1.68M, with median days on the market being 16 days. With prices continuing to rise as a result of a lack of inventory, now is an excellent time for homeowners to sell. Although the hot seller's market has cooled significantly due to rising mortgage rates, it continues to offer homeowners good returns.

Existing SFR Home Sales in Irvine in August 2022 were 78, down 52.4% year-over-year.
The Existing SFR Median Price was $1.68M, up 16.4% year-over-year.
Total Active Listings in the month were 182, a +78.4% change from last year.
Median Days on the Market were 16 days.
The Sale-to-List Price ratio was 99.8%.
% of Active Listings with Reduced Prices was 30.8%.

As per the real estate company named Redfin, in August 2022, Irvine home prices were up 13.4% compared to last year, selling for a median price of $1.3M. On average, homes in Irvine sell after 35 days on the market compared to 29 days last year. There were 201 homes sold in August this year, down from 376 last year.

Sale-to-List Price was 99.5%.
34.8% of Homes Were Sold Above List Price.
37.9% of Homes Were with Price Drops.
Only some homes for sale in Irvine get multiple offers.
The average homes sell for around the list price and go pending in around 35 days.
Hot homes can sell for about 3% above the list price and go pending in around 20 days.

Irvine Real Estate Market Forecast 2022-2023

The real estate data from Zillow shows that the typical home value in Irvine is $1,297,176. From 2019 to 2020, home prices were up by about 4.5%. Last year has been sizzling hot for sellers as Irvine home values went up 21.2%. The supply is very tight and with all the other factors considered, at this time, it is unlikely that the Irvine housing market will see a price decline in 2022. As of August 2022, Irvine home values have gone up 21% over the past twelve months.

Irvine is a master-planned city in Orange County, California, the United States in the Los Angeles metropolitan area.

The typical home value of homes in Irvine City is $1,297,176, up 21% over the past year.
Orange County's home values have gone up 13% year over year to $997,821.
The typical home value of homes in the Los Angeles-Long Beach-Anaheim Metro is $972,828.
Los Angeles metro home values have gone up 8.5% over the past year.
The Los Angeles metro housing market forecast ending with August 2033 is negative.
Zillow predicts that Los Angeles metro home values may decline by 2.2% between Aug 2022 to August 2023.
If this forecast is correct, Los Angeles metro home prices will be lower in the 2nd Quarter of 2023 than they were in the 2nd Quarter of 2022.

Irvine Real Estate Market Forecast — Graph Credits: Zillow.com

Irvine Real Estate Investment Overview

Now that you know where Irvine is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should you invest in Irvine real estate? Many real estate investors have asked themselves if buying rental property in Irvine is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Irvine housing market forecast for answers on why to put resources into this market. Regulatory restrictions on top of environmental regulations make it incredibly difficult to develop open land. It also drives up the cost of redevelopment, such as when you tear down a small home on a large lot to build anything from a modern 2600-square-foot home to a duplex. This slows down construction and redevelopment in the Irvine housing market and limits supply overall.

That’s aside from local and state regulations that drive up the cost of labor and materials. Conversely, it ensures significant appreciation of any Irvine real estate investment property. Although, this article alone is not a comprehensive source to make a final investment decision for Irvine we have collected ten evidence-based positive things for those who are keen to invest in the Irvine properties. Investing in Irvine properties will fetch you good returns in the long term as the home prices in Irvine have been trending up year-over-year.

Irvine Real Estate Appreciation

If you're a home buyer or a real estate investor, Irvine has unquestionably been one of the best long-term real estate investments in the country over the last decade. According to Neigborhoodscout, Irvine has had some of the highest home appreciation rates of any community in the country over the last decade.

Irvine real estate has appreciated by 103.21 percent over the last decade, which equates to an annual appreciation rate of 7.35 percent on average, placing Irvine in the top 20% of all cities for real estate appreciation. Irvine's appreciation rate over the last twelve months has been 18.78 percent. According to NeighborhoodScout data, during the latest twelve months, Irvine's appreciation rate, at 14.53%, has been at or slightly above the national average.

While real estate’s mantra can be summarized as “location”, the Irvine real estate market is defined by it. Home prices in the Irvine housing market are certain to go up because the city is entirely built out. And they can’t build up into the regional and state parks directly east of the city. Nor can they spread west, since cities like Corona Del Mar and the Crystal Cove State Park hem it in on the western edge.

Everything to the north and south is built out. That means that the only way one could increase housing stock is to tear down existing stock and build taller, denser, or both. Conversely, people are willing to pay a premium to live in the Irvine area given the wealth of dedicated greenspace.

Some of the best neighborhoods in or around Irvine, California are Northwood, Woodbridge, Westpark, Tustin, Tustin Legacy, Woodbury, Laguna Altura, Cypress Village, Turtle Rock, Pavilion Park, and Stonegate. Shady Canyon has a median listing home price of $7.6M, making it the most expensive neighborhood. Oak Creek is the most affordable neighborhood, with a median listing home price of $718.9K.

Here are some of the best neighborhoods to invest in Irvine real estate because they have the highest appreciation rates since 2000 (List by Neigborhoodscout.com).

Hidden Canyon
Parasol Park
Solano At Altair / Celestial At Altair
Oak Creek West
Terrace
Turtle Rock West
University Park
Foothill Ranch
Irvine Spectrum / Irvine Medical and Science Complex
Westpark South

The Job Market

Orange County is Southern California’s tightest job market. Unemployment is less than 3 percent, and many of them are good-paying professional jobs. That’s one reason why many choose to live in Irvine. Given the horrors of regional traffic, anyone working at UC Irvine, Verizon, Irvine Company, or Broadcom typically chooses to live here so they aren’t commuting three hours a day to these good-paying jobs.

Irvine Rental Prices Are Rising

In Irvine, 50% of households are occupied by renters. It is easy to find a cheap apartment in a place no one wants to live, though the reasons why demand is low could range from abundant gunfire at night to a lack of jobs and people in the area. The Irvine housing market sits at a sweet spot. The City of Irvine consists of 8 zip codes and is often designated as one of the safest cities to live in. It has reasonable rental rates compared to expensive California coastal real estate prices, and it has a high quality of life rating.

This isn’t a matter of opinion. It was determined by WalletHub. That’s why the Irvine real estate market came in eleventh on the Wallethub ratings, the best city in California according to their metrics. Sometimes a housing market can only be gauged by the competition. For example, the 2,500 monthly rental rate in the Irvine housing market sounds insane to those used to 1000 a month rents in the heartland. Yet this is only a few hundred dollars more a month than a renter would pay in neighboring Anaheim.

The more accurate comparison is the Irvine real estate market relative to Newport Beach directly to the west. Renting in Irvine is several hundred dollars cheaper a month than Newport Beach and other towns sitting on the Pacific shore, yet you’re just as close to major employers. Rent control hurts renters entering a market because those in the rent-controlled market have a major incentive not to move. This results in older singles and couples staying in the apartment in which they raised their children.

The same thing is found in California due to Proposition 13. Many retirees and childless middle-aged couples can’t afford to move until they can no longer stay in their home, since they’d pay higher property taxes on a smaller condo or two-bedroom home than they pay in their grandfathered four-bedroom suburban house. That drives up both rental rates and property prices in the Irvine real estate market.

As of September 29, 2022, the average rent for a 1-bedroom apartment in Irvine, CA is currently $2,805. This is a 3% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Irvine decreased by -3% to $2,505. The average rent for a 1-bedroom apartment decreased by -4% to $2,805, and the average rent for a 2-bedroom apartment remained flat.

The average rent for a 2-bedroom apartment in Irvine, CA is currently $3,574, up 8% compared to the previous year.
The average rent for a 3-bedroom apartment in Irvine, CA is currently $4,300, up 12% compared to the previous year.
The average rent for a 4-bedroom apartment in Irvine, CA is currently $5,438, up 10% compared to the previous year.

Proposition 10 prevented rent control from being imposed on single-family homes and apartments built after 1995. The vote to repeal Prop 10 was one of the most expensive legislative battles in California history, but the statewide rent cap went into effect in September 2019. Now rental rate increases are capped. You may find deals on Irvine real estate investment properties by those who just want to get out before their hands are tied or their profit margins eroded. This parallels the potential opportunities created by Oregon’s statewide rent control law. People afraid they’ll lose money become eager to sell.

The Relatively Friendly Environment for Landlords

California is tenant-friendly. However, local jurisdictions range from outright hostile to property owners to lukewarm. We’ll say that the Irving real estate market is one of the least hostile to property owners. For example, Orange County had fewer restrictions on why you could evict a tenant. They had the 30/60 day notice to quit rules or the minimum the state required at the time. There was less risk of squatters ruining an Irvine real estate investment property and being protected by the courts than you would with a Los Angeles real estate property.

The Large Student Market For Investors

Student markets always present an excellent opportunity for real estate investors. The student market is almost immune to inflation. The value of the property is almost directly proportional to its proximity to campus. And in the case of the Irvine real estate market, potential student renters are competing with locals for limited rental spots.

The robust rental market gives an Irvine real estate investment property extra value since the demand for the rental isn’t tied directly to the rise and fall of one particular school. Conversely, UC Irvine is home to around 30,000 students. That means the demand for an Irvine real estate investment property near campus won’t fall 10 percent because they built a new dorm or two.

Irvine’s housing market seems expensive, but that is in line with local real estate trends. The area remains stable and strong, though recent legislative trends along with ongoing regulations make this a great time to buy.

NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

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

The median rent in the Boulder real estate market is $2500 per month. Even in the older downtown area, rents hover around 2300 dollars a month, and that figure is predominantly one and two-bedroom apartments. Rents are inflated by the massive number of students in the Boulder real estate market.

Another upcoming market to choose for real estate investment is Vancouver, WA. Vancouver, Washington is a steadily growing, appreciating real estate market. Investors here will profit from Portland’s mistakes while earning greater returns than if they invested in one of the more expensive housing markets in the region. The Vancouver WA housing market has a sizable student market. Better yet, it isn’t limited to a single school. Washington State University Vancouver has more than three thousand students. It is the second-largest Washington State campus. Gateway Seminary is home to around two thousand graduate students.

Let us know which real estate markets you consider best for real estate investing!

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

References

Market Prices, Trends & Forecasts
https://www.car.org/marketdata/data/countysalesactivity
https://www.zillow.com/Irvine-ca/home-values
https://www.redfin.com/city/9361/CA/Irvine/housing-market
https://www.realtor.com/realestateandhomes-search/Irvine_CA/overview
https://www.neighborhoodscout.com/ca/irvine/real-estate
https://www.zumper.com/rent-research/irvine-ca

Oppressive regulation
https://www.ocregister.com/2018/06/19/hot-real-estate-markets-to-cool-in-2020-experts-predict/
Limited used home regulation
https://www.nber.org/digest/apr05/w11108.html
https://www.washingtonpost.com/opinions/2019/06/15/comeback-rent-control-just-time-make-housing-shortages-worse/

Regulatory effects
https://www.latimes.com/politics/la-pol-ca-proposition-10-rent-control-20181106-story.html
https://www.multifamilyaccounting.com/oregon-was-such-a-nice-place-rent-control-is-going-to-ruin-it/
https://www.latimes.com/california/story/2019-09-05/how-california-cap-rent-increases-would-work
https://www.nytimes.com/2019/09/11/business/economy/california-rent-control.html

Landlord friendly
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
https://www.ocsd.org/gov/sheriff/divisions/custody/court/civil/evicting.asp
https://www.occourts.org/self-help/landlordtenant/
https://www.wsj.com/articles/the-hostile-occupation-of-carlos-lopezs-house-1527892100

Quality of life versus rent
https://wallethub.com/edu/best-cities-for-renters/23010/

Deal for renters
https://www.rentcafe.com/average-rent-market-trends/us/ca/irvine/
https://www.rentcafe.com/average-rent-market-trends/us/ca/anaheim/

Job market
http://www.irvinestop10.com/Employers.aspx
https://www.globest.com/2018/12/28/oc-is-socals-tightest-job-market/?slreturn=20190905122235

Is 2022 a Good Time to Invest in Real Estate?

Invest Now in Real Estate To Build Equity

Real Estate Investing Myths

1. You Can’t Make Money in Real Estate Without a Lot of Money

2. You Need Little to No Knowledge to Become a Real Estate Investor

3. You Should Time the Market to Have the Greatest Success

4. Only Invest in Appreciating Markets

5. Real Estate is a ‘Get Rich Quick' Investment

Top 12 Mistakes to Avoid in Real Estate Investing

1. Thinking You Have to Invest in Your Backyard

2. Not Setting Specific Investment Criteria

3. Investing in a Particular Real Estate Market Because You Have Family Nearby

4. Doing Things Simply Because “That’s the way I have always done them”

5. Working With The Wrong People

6. Negative Cash Flow

7. Being Unorganized

8. Not Factoring in Maintenance and Vacancy

9. Thinking You Need to Buy a Primary Residence Before Owning Investment Property

10. Not Conducting Proper Due Diligence

11. Ignoring a Buyer's Market For Real Estate Investing

12. Choosing Flipping Over Turnkey Rental Investment

3 Basic Tips For Real Estate Investors

Real Estate Investment Tips For Beginners

Tips For Seasoned Real Estate Investors

Tips For All Real Estate Investors

How to Start Real Estate Investing as a Beginner?

Manhattan Real Estate Market 2022 Trends

Manhattan Housing Sales Q2-2022

Manhattan Rental Market Trends

Manhattan Real Estate Investment Overview

The Diverse Manhattan Housing Market

The Long Term Real Estate Forecast

The Higher Quality of Life in New York City

The Relative Deal on Property Taxes

Conclusion

Best Finance Books of All Time

12 Best Personal Finance Books Of All Time To Get Rich And Become A Millionaire

<img class="alignleft wp-image-4242 size-full" style="float: left; margin: 5px 15px 0px 0px;" src="https://29y1pu2xvdbzd0g2823sa275-wpengine.netdna-ssl.com/wp-content/uploads/2017/04/Read-More-Books.jpg" alt="Books To Read To Get Rich" width="250" height="250" />

1. “Think and Grow Rich” by Napoleon Hill

2. “Business Adventures” by John Brooks

3. “The Little Book of Common Sense Investing” by John C. Bogle

4. “The Essays of Warren Buffett” by Warren Buffett

5. “Tools of Titans” by Tim Ferriss

6. “The Richest Man in Babylon” by George S. Clason

7. “Rich Dad Poor Dad” by Robert Kiyosaki

8. “The Automatic Millionaire” by David Bach

9. “How Rich People Think” by Steve Siebold

10. “Be Obsessed or Be Average” by Grant Cardone

11. “The Power of Broke” by Daymond John

12. “You Can Negotiate Anything” by Herb Cohen

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Austin Housing Market Forecast 2022 & 2023

Is Austin Texas Good for Real Estate Investment?

Is Austin Housing Market In A Bubble?

Austin's Affordable Real Estate & Certain Future Appreciation

Cost of living In Austin

Austin's Massive Student Population Propels The Rental Investment

Austin Is The Silicon Prairie

Austin is a Relatively Friendly City for Landlords

The Excellent Tax Environment

Texas Real Estate Investment Opportunities: Where To Invest?

Irvine Housing Market Trends

Irvine Real Estate Market Forecast 2022-2023

Irvine Real Estate Investment Overview

Irvine Real Estate Appreciation

The Job Market

Irvine Rental Prices Are Rising

The Relatively Friendly Environment for Landlords

The Large Student Market For Investors

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