Even though the Covid pandemic has not ended, the Colorado Springs housing market continues to break all records. The real estate market has reached record highs, with a scarcity of available homes. The Colorado Springs real estate market is suffering from a severe lack of inventory, with fewer homes for sale than this time last year. The “Months Supply of Inventory” is 0.5 as of May 2021, a 61 percent decrease from the previous year.

In May 2021, single-family home sales in El Paso county increased by 35% while new listing dropped by – 9.6% year over year. The median sales price has reached a new peak of $432,000, which is +22.6% higher than last year. Total available properties for sale have shrunk by almost 62% year-over-year which amounts to 0.5 months of supply. Months of supply is a good indicator of whether a particular housing market is favoring buyers or sellers. Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers.

The latest monthly data by Realtor.com shows that the median list price of homes in Colorado Springs on their platform is $399,900, trending up 14.3% year-over-year. The median listing price per square foot was $184. The median sale price was $493,500. Ideally, a buyer would prefer a sale to asking price ratio that’s closer to 90%. The sellers in Colorado Springs have managed to hold good leverage in these negotiations in the past month.

On average, they could sell homes for 102.94% of the asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher. Broadmoor has a median listing price of $740K, making it the most expensive neighborhood. Park Hill is the most affordable neighborhood, with a median listing price of $310K.

Colorado Springs Housing Market Trends 2021 (Describes May)

Analyzing real estate data on a month-to-month basis gives you a much broader perspective of the direction in which a market is moving. We shall now discuss some of the most recent housing trends in the Colorado Springs area. We shall mainly discuss median home prices, inventory, and growth, which will help you understand the way the local real estate market moves in this region. Colorado Springs is a minimally walkable city with a population of approximately 415,281 people.

There is a high demand but low inventory in the Colorado Springs real estate market. Housing prices in Colorado Springs are still increasing because of this effect of supply and demand. Even before the Coronavirus pandemic hit the nation, Colorado Springs was experiencing record sales each month, and its local economy was doing great. The real estate market was on the verge of breaking all the past sales records.

According to Neighborhoodscout.com, a real estate data provider, three and four-bedroom single-family detached homes are the most common housing units in Colorado Springs. Other types of housing that are prevalent in Colorado Springs include large apartment complexes, duplexes, rowhouses, and homes converted to apartments.

Here's what housing data looked like in May 2021, which was released by the Colorado Association of REALTORS®. The sales data is for Single Family Homes in El Paso County, CO.

Colorado Springs Real Estate Market Forecast 2021-2022

What are the Colorado Springs real estate market predictions for 2021 & 2022? Let us look at the price trends recorded by Zillow over the past few years. Colorado Springs has a track record of being one of the best long-term real estate investments in the U.S. Since 2012, the typical home values in Colorado Springs have appreciated by around 106% (Zillow Home Value Index). The home values have gone up 22.7% over the past year and are currently holding at $400,014. ZHVI reflects the typical value for homes in the 35th to 65th percentile range.

Colorado Springs a sizzling seller’s real estate market as there exists a limited supply of homes in Colorado Springs, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers. In other words, based on the last month’s key housing market indicators, the demand is exceeding the supply, giving sellers an advantage over buyers in price negotiations. There are fewer homes for sale than there are active buyers in the marketplace.

Here is the visual representation of historical Colorado Springs Metro home prices and the latest forecast until May 2022. The Colorado Springs MSA encompasses El Paso County and Teller County, Colorado. 

• The typical value of homes in the Colorado Springs Metro Area is $405,913. Home values have gone up 21.0% over the past year and Zillow predicts they will rise 17.5% in the next year.
• Colorado Springs home values have gone up 22.7% over the past year and will continue to rise at a similar pace in the next twelve months.
• El Paso County home values have gone up 21.6% over the past year and will continue to rise at a similar pace in the next twelve months.
• Teller County home values have gone up 8.1% over the past year and will continue to rise at a similar pace in the next twelve months.

The change in home prices for Colorado Springs, Colorado is shown below for the three time periods (data up to 3rd Quarter, 2018). The Colorado Springs Home Price Index has increased for the last 15 consecutive quarters. The highest annual change in the value of houses in the Colorado Springs Real Estate Market was 22% in the twelve months ended with the 2nd Quarter of 1982. The worst annual change in home values in the Colorado Springs Market was -8% in the twelve months ended with the 4th Quarter of 1983.

The highest growth in home values in the Colorado Springs Real Estate Market over three years was 33% in the three years ended with the 2nd Quarter of 2018. The worst performance over three years in the Colorado Springs Market was -10% in the three years ended with the 2nd Quarter of 2011. For upcoming updates, you can visit this page.

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? In conclusion, we can say that the Colorado Springs market is so hot that it cannot shift to a buyer’s real estate market, for the long term. 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, Colorado Springs can become a buyer’s real estate market if the supply increases to more than five months of inventory.

And that’s not going to happen. We can conclude that demand has not only recovered from the COVID-19 pandemic but has reached heights that make it very strong by any historical standard. The real estate appreciation rate in the latest quarter was at 3.02%, which equates to an annual appreciation rate of 12.63%, which is again a double-digit rate of appreciation. The local realtors also anticipate that home prices would rise due to tight inventory and pent-up demand Hence, Colorado Springs real estate market remains strong and skewed to sellers, due to persistent imbalance in supply and demand.

Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control. Many variables could potentially impact the value of a home in Colorado Springs in 2021 (or any other market) such as big changes in the distressed, new-construction, or luxury home segments. There are also a wide variety of economic and political factors that can and do impact real estate markets. Most of these variables are difficult to predict in advance. 

Colorado Springs Real Estate Investment: Should You Invest?

Is Colorado Springs a Good Place For Real Estate Investment? Many real estate investors have asked themselves if buying a property in Colorado Springs 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 2021. Let’s talk a bit about the Colorado Springs area before we discuss what lies ahead for investors and homebuyers. The Colorado Springs real estate market gets overlooked in favor of bigger markets like Denver.

However, Colorado Springs has several things in its favor for residents and real estate investors alike. Colorado Springs sits on the eastern side of the Rocky Mountains. Colorado Springs contains nearly half a million people. The Colorado Springs metropolitan area is home to around seven hundred thousand people. The Colorado Springs area is seeing continual, rather fast growth. Colorado Springs real estate has continued to appreciate faster than most of the markets in the US.

Conditions in the Colorado Springs real estate market seem to be in a sustainable, upward direction and show no signs of slowing down. Inventory is low and prices are increasing at a steady pace. The local economy is strong and mortgage rates remain low. Colorado Springs's real estate appreciation rate in the latest quarter was around 3.02%, which equates to an annual appreciation rate of 12.63%. You can either choose to invest in your future or market your home to potential buyers.

If you are looking to make a profit, you don’t want to buy the most expensive property on the Colorado Springs 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 Colorado Springs 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. Let’s take a look at the number of positive things going on in the Colorado Springs real estate market which can help investors who are keen to buy an investment property in this city.

Colorado Springs is a Rental Market

Many people know that the Air Force Academy is located in Colorado Springs. However, the student market in Colorado Springs is both larger and more diversified than the military student population. The University of Colorado Springs hosts over twelve thousand students. Colorado College, Colorado Technical College, Remington College, Colorado Christian University, and the University of the Rockies are also located here. This provides a large, diverse student market that rents properties across the Colorado Springs real estate market.

U.S. News and World Report magazine discusses the large retiree community in Colorado Springs. The area’s abundant recreational opportunities and proximity to military services like commissaries and VA facilities explain why more than 10% of the population is retired – many of them military veterans and their families. Peterson Air Force Base sits on the eastern edge of town.

For Airbnb's attractability and business building, there are two huge military bases with Air Force, Naval Academy. Fort Carson, an Army base, is located within the city limits. The infamous Cheyenne Mountain is located just to the west of town. A side benefit of this diverse military market is that the Colorado Springs real estate market enjoys a large, permanent population of renters but without the wild swings that come with the rise and fall of a single military base’s fortunes.

Latest Rental Trends: As of July 8, 2021, the average rent for an apartment in Colorado Springs, CO is $995 which is a 1% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Colorado Springs increased by 11% to $895. The average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment increased by 7% to $1,350.

• Two-bedroom apartments in Colorado Springs rent for $1,350 a month on average (a 4% increase from last year).
• Three-bedroom apartment rents average $1,895 (a 15% increase from last year).
• Four-bedroom apartment rents average $2,300 (a 17% increase from last year).

According to RENTCafe, 36% of the households in Colorado Springs, CO are renter-occupied. The average size for a Colorado Springs, CO apartment is 837 square feet with studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage. 48% of the apartment can be rented in the price range of $1,001-$1,500 while 36% fall in the price range of $701-$1,000.

The most expensive Colorado Springs neighborhoods to rent apartments in are Briargate, Northgate, and Central Colorado City. The cheapest Colorado Springs neighborhoods to rent apartments in are East Colorado Springs, Southeast Colorado Springs, and Northeast Colorado Springs.

The Landlord Friendly Market Compared to the Rest of the West

Colorado is almost as landlord-friendly as Arizona and Texas, but it is far more landlord-friendly than Nebraska, Kansas, or any West Coast state. Colorado allows you to quickly evict tenants who don’t pay their rent. Once you give them a demand for compliance, they have 72 hours to either pay up or move out. If that 3 day period expires and you go to court, the courts typically side with the landlord. After that ruling, the tenants have 48 hours to leave, and then local law enforcement will enforce the eviction order. Another major point in its favor is that you’re not required to get tenants a 24-hour notice before you visit the property.

Short-Term Rental Investment Opportunities

A city that’s within a stone’s throw of Pike’s Peak and the rest of the Rocky Mountains is going to attract tourists. Garden of the Gods is a very famous public park located in Colorado Springs. It was designated as a National Natural Landmark in 1971. It features stunning geological formations, rock climbing, nature trails, and the Garden of the Gods Visitor & Nature Center. Another major attraction is the US Olympic Training Center, located in Colorado Springs. Colorado Springs allows properties to be rent out on a short-term basis, but you must have a short-term rental permit and collect the appropriate taxes.

Colorado Springs’ regulations on short-term rentals are not as stringent, though, as those in nearby “tourist” towns like Breckenridge. Colorado Springs is a very Airbnb-friendly city. You can convert your property into an Airbnb vacation rental and rent it out to vacationers and tourists on a short-term rental basis. Owning a house near the Gardens of the Gods Park can prove to be a goldmine in building up your Airbnb rental business. For setting up an Airbnb business, there are lots of outdoor attractions, 3 hospitals, the Broadmoor hotel (historic hotel on a lake), 2 cute downtown streets with restaurants (downtown and colorado city), 90mins from Denver, and 2 hours from skiing in Breckenridge.

Their airport offers direct flights to many cities via Frontier & United. You can also co-host clients in Colorado Springs through profit sharing with landlords. You can charge landlords a start-up fee and 20% commission for co-hosting (finding clients and getting the property Airbnb ready). The controversial Airbnb ordinance was passed in November 2018 by the Colorado Springs City Council. Under the ordinance, property owners must apply for a license, pay taxes, and obey neighborhood rules. This came into effect on January 1st, 2019.

Colorado Springs' Strong Job Growth & Demographics Momentum

The Colorado Springs area boasted an unemployment rate of around 3% in 2018, more than a full percentage point less than the national average. People move here for work and the lower cost of living compared to more expensive Front Range cities. Industry sectors hiring people include hospitality and professional and technical services. The latter category is driven by defense contractors in the area.

Despite the very large population over the age of 65, Colorado Springs managed to have a median age of 34, several years below the national average. The tight labor market is drawing people to the area and keeping college graduates in the vicinity. This guarantees demographic momentum as young people stay here to buy homes and raise their own families, fueling demand for the Colorado Springs real estate market.

Colorado prides itself on cultivating high-tech jobs like California without the over-crowding or insane housing prices. Yet this has made the Denver housing market unaffordable for many people who work there. One solution for many is living in Colorado Springs and commuting an hour or more each way to work. Another solution that’s more readily available in Colorado than elsewhere is telecommuting.

Realtors in the Colorado Springs housing market are finding people buying houses even on the south side so they can find a property they can afford, then driving in one or two days a week to Denver. Conversely, the high price of a property in Denver is driving many businesses to move or expand south into the Front Range, bringing Denver’s jobs closer to the Colorado Springs housing market.

Steady Property Appreciation Forecast

Population growth in Colorado Springs has been just ahead of new home construction; housing permits in the Colorado Springs real estate market, for example, are not yet back at 2005 levels. This helps to explain why home prices have risen more than 40% in the past five years, though it is one of the most active housing markets in the country. This is partial because Millennials are the biggest group buying houses today, and the Colorado Springs real estate market is already loaded with them.

Millennials prioritize homes in walkable areas with access to public transit, but they value practical, usable homes oversize. This means well-designed condos and duplexes in the right areas are as attractive to them as a large house in the suburbs. However, the limited supply of homes on the market in Colorado Springs is keeping prices increasing faster than the rate of inflation. Ironically, the near-total lack of homes with negative equity in the Colorado Springs housing market has been considered one reason why prices are going up so fast.

Colorado Real Estate Investment Opportunities

Maybe you have done a bit of real estate investing in Colorado but want to take things further and make it into more than a hobby on the side. The Colorado Springs real estate market contains several large populations of renters, many practical reasons for people to move here from the surrounding area and across the country, and long-term factors that will drive growth for years to come. Forget the Mile High City and invest in the Colorado Springs real estate market.

Good cash flow from Colorado Springs 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 a good Colorado Springs real estate investment opportunity would be key to your success.

The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Colorado Springs investment real estate and you should be able to flip it for a lump sum profit.

The neighborhoods in Colorado Springs must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. As with any real estate purchase, act wisely. Evaluate the specifics of the Colorado Springs housing market at the time you intend to purchase.

Some of the popular neighborhoods in Colorado Springs are Broadmoor, Old Farm, Colorado Centre, Kissing Camels, Downtown Colorado Springs, Falcon Heights, Cordera, Wolf Ranch, Rockrimmon, Old Colorado City, Fountain Valley, Old North End, Pikes Peak Park, Briargate and Flying Horse Ranch.

Here are the ten neighborhoods in Colorado Springs having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

1. Fort Carson
2. Route 115 / Turkey Canyon Ranch Rd
3. Titus Blvd / Harr Ave
4. City Center
5. N El Paso St / E Espanola St
6. S Circle Dr / E Fountain Blvd
7. S 26th St / Westend Ave
8. Black Forest Hwy / Baker Rd
9. S Hancock Ave / E Pikes Peak Ave
10. N Union Blvd / E Dale St

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

It has a low unemployment rate of 2.3% as of Dec 2019, according to the U.S. Bureau of Labor Statistics. A third of the population of the Denver metro area rents. All these are excellent signs of investors looking to buy a rental property in Denver. Despite the recent cooling off, there are several reasons to consider a long-term investment in the Denver real estate market. Shortage of housing for a growing population, a strong economy & increasing jobs have been fueling the demand in the Denver housing market for the past many years.

The Boulder real estate market also puts you in reach of a great job market. The colleges foster high-tech startups. That keeps many college grads here after they finish school while attracting students in the first place. However, it is the offices of Big Tech firms like Google and Microsoft that are more attractive.

The Boulder housing market has also been bolstered by the presence of multiple government agencies like the National Center for Atmospheric Research and the National Institute of Standards and Technology. This makes Boulder a good place to start a scientific or technical career, especially if your goal is research. It also creates high-tech jobs almost immune to the state of the economy. And that's aside from the strong job market in Denver down the highway.

The Fort Collins area is another great market to invest in real estate. The area is growing both as an outer suburb of Denver and for its reasons, making it the fourth-largest city in the state. The city offers an ideal mix of jobs, affordable living, and a decent quality of life that will keep it strong for years to come. Fort Collins and several other cities on the Front Range hit the top ten list due to factors like relatively low cost of real estate in the Fort Collins housing market, high education levels, low taxes, and strong business incentives.

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

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

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

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

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

Please do not make any real estate or financial decisions based solely on the information found within this article. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. This article aimed to educate investors who are keen to invest in Colorado Springs real estate. Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and take the help of a real estate investment counselor.

REFERENCES:

Market Prices, Trends & Forecasts
https://www.coloradorealtors.com/
https://www.coloradorealtors.com/market-trends/regional-and-statewide-statistics/
https://www.zillow.com/ColoradoSprings-co/home-values
https://www.neighborhoodscout.com/co/colorado-springs/real-estate/
https://www.littlebighomes.com/real-estate-colorado-springs.html
https://www.realtor.com/realestateandhomes-search/Colorado-Springs_CO/overview
https://greatcoloradohomes.com/colorado-springs-real-estate-market-statistics.php
https://www.propertymanagementincoloradosprings.com/colorado-springs-local-market-statistics

Rental Statistics
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
https://morrisinvest.com/blog/2016/12/21/5-most-landlord-friendly-states
http://www.landlordstation.com/blog/top-landlord-friendly-states
https://www.zumper.com/rent-research/colorado-springs-co

Reasons to Invest in Colorado Springs
https://www.uccs.edu
https://en.wikipedia.org/wiki/Colorado_Springs,_Colorado
https://realestate.usnews.com/places/colorado/colorado-springs
https://www.military.com/base-guide/colorado-springs-military-bases
https://www.zeonamcintyre.com/blog/2018/1/26/airbnb-investing-trip-colorado-springs-edition
https://www.krdo.com/news/top-stories/airbnb-ordinance-passes-2nd-vote-by-colorado-springs-city-council/862178044
https://www.avalara.com/mylodgetax/en/blog/2018/10/colorado-springs-passes-new-airbnb-rules.html
http://www.cpr.org/news/story/move-over-denver-colorado-springs-might-have-the-hottest-housing-market

Is Baltimore going to be a sizzling real estate market for investors over the next twelve months? According to NeighborhoodScout's data, Baltimore's appreciation rate has been at or slightly above the national average over the last twelve months, at 6.00 percent. Baltimore's appreciation rate in the most recent quarter was 1.63 percent, which equates to a 6.70 percent annual rate. In comparison to the rest of Maryland, Baltimore's most recent annual appreciation rate is higher than that of half of the state's other cities and towns.

You can either choose to invest in your future or market your home to potential buyers. If you are looking for an affordable real estate market with a high potential for return on investment, you should consider Baltimore, MD. New employers and investment continue to add to the long list of reasons why people desire to live in Maryland. In this article, our focus will be on the current state of the Baltimore real estate market and how it can affect investors and home buyers.

Maryland Housing Market Trends 2021 (Describes June)

Here are latest Maryland housing market trends. Maryland home sales and prices continued to surge again in June, according to the latest report from Maryland Realtors. Statewide, June sales hit 10,790, up 24.2% from the same month a year ago. It shrunk the months supply of inventory to 1, which measn it will take just a month to for the current inventory of homes on the market to sell given the current sales pace.

Maryland is expected be a tight housing market for a while, favoring home sellers. Housing inventory remains very low compared to the demand from homebuyers. As as result, the medain price has reached $375,000, which is $45,000 more than last June. Homes are spending a median time of six days on the market, down from 14. The median represents the middle, with half of the homes spending more time and half spending less.

• 10,790 units were sold in June, up +24.2% year-0ver-year.
• The average sales price was $442,764, up +17.4% year-0ver-year.
• The median price was $375,000, up +13.6% year-0ver-year.
• Total pending sales were 10,699 whereas in 2020 they were 10,094.
• The ACTIVE INVENTORY is 8,550 units whereas in 2020 it was 15,558 units.
• MONTHS OF INVENTORY is 1.0 whereas in 2020 it was 2.2.
• MEDIAN DAYS ON MARKET is 6 whereas in 2020 it was 14.
• NEW LISTINGS are 12,668 whereas in 2020 there were 10,284 new listings.

Among Maryland's 24 jurisdictions, Montgomery County reported the most sales in June, at 1,707. Somerset County had the fewest, at 36. The Allegany County reported the highest median price grwoth of +26.8% from last year (from $115,500 to $146,500). Homes are selling fastest in Harford County, Frederick County, Anne Arundel County, and Baltimore County. The median days on market in these counties was 5 in June.

Baltimore Housing Market Trends 2021 (Describes June)

Because of historically low-interest rates, the real estate market in Baltimore is booming. The real estate market is currently performing exceptionally well. Baltimore's housing supply is consistent with the national trend of increased demand for single-family homes. Baltimore currently has only one month's worth of housing inventory available. The delinquency rate in Baltimore reached an all-time high of 9.4 percent during the pandemic, but it is now at 6.6 percent, up 2.3 percent year over year.

State of the Market

• In June, 1,281 housing units were sold in Baltimore County versus 1,079 last year, according to Maryland REALTORS® Monthly Statistics.
• The total number of units sold this month was higher than at this time last year, representing an 18.7% increase over June 2020.
• In June, the median sale price was $310,000, up 12.7 percent or $35,000 from the previous year.
• The current median sales price is 3% higher than it was in May 2021.
• The median sale price for Baltimore City was $220,563, an increase of 17.9% or $33,563 compared to last year.
• 1,170 homes were sold in Baltimore City in June versus 912 last year, a 28.3% increase.
• The median days on market were 5 in Baltimore County and 8 in Baltimore City.

Baltimore County Housing Inventory

• The total number of available homes is down by 701 units or 45%.
• This June, the total number of active inventory was 857, compared to 1,558 in June 2020.
• In June, Baltimore County had 0.8 months of supply available, compared to 1.8 in June 2020.
• In comparison to last month, supply has remained stable this month.

New Listings & Pending Sales

• This month there were 1,542 homes newly listed for sale in Baltimore County compared to 1,197 in June 2020, an increase of 28.8%.
• There were 1,324 current contracts (pending sales) this June compared to 1,190 a year ago.
• The number of pending sales is 11% higher than last June.

Listing Prices

• According to Realtor.com, in May 2021, the median list price of homes in Baltimore, MD was $225K, trending up 16.6% year-over-year.
• The median listing price per square foot was $156.
• The median sale price was $245K.
• Sale-to-List Price Ratio: 100%
• Ideally, a buyer would prefer a sale to asking price ratio that’s closer to 90%.
• The sellers in Baltimore have managed to hold good leverage in these negotiations in the past month.
• On average, they could sell homes for 100% of the asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher.

Greater Baltimore Housing Market Trends (April 2021 & Most Recent)

One year into the pandemic, the Baltimore-area housing market sees continued demand and high prices. The median sales price in the first quarter of 2021 was $305,500, an increase of 11% from the previous year. This year, 9,571 homes have been sold, a 14 percent increase over the first quarter of 2020. Here are the latest monthly real estate trends for Greater Baltimore (the city and surrounding suburbs in Baltimore County) published by GBBR REALTOR® (based on listing activity from Bright MLS, the multiple listing service serving Baltimore).

• Median sales price rose to an all-time high of $330.0K.
• Upcoming sales of attached homes (4,054) hit a record high.
• New listings (5,745) had their highest monthly number since May 2019.
• Days on the market reached a metro area low six days.
• The median sales price in Anne Arundel County hit an all-time high of $415K.
• Closed sales of townhouses hit an April all-time high (1,576 sold units), up 43.1% from April 2020 and 26.4% from April 2019.

Baltimore Real Estate Market Forecast 2021-2022

What are the Baltimore real estate market predictions for 2021 & 2022? Let us look at the price trends recorded by Zillow over the past few years. It has a track record of being one of the best long-term real estate investments in the U.S. Since Jan 2012, the typical home value in Baltimore City has appreciated by around 50.2% (Zillow Home Value Index). Baltimore home values have gone up 15.1% over the past year alone. The typical value of homes in Baltimore is currently $180,223.

It indicates that 50 percent of all housing stock in the area is worth more than $180,223 and 50 percent is worth less (adjusting for seasonal fluctuations). ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. The supply is exceeding the demand, giving purchasers an advantage over sellers in price negotiations. In other words, there are more homes for sale than there are buyers in the marketplace. Baltimore is a seller's real estate market.

• The typical home value of homes in Baltimore-Columbia-Towson Metro (Melvale) is $341,307.
• Baltimore-Columbia-Towson Metro (Melvale) home values have gone up 13.3% over the past year and Zillow predicts they will rise 10.4% in the next year.
• Baltimore City home values have gone up 15.1% over the past year and will continue to rise over the next twelve months.
• The typical value of homes in Baltimore County is $300,457, up 14.2% over the past year.

Here is the Baltimore-area real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast until June 2022.

Baltimore Real Estate Investment: Should You Invest in Baltimore?

Now that you know where Baltimore 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. Is Baltimore a Good Place For Real Estate Investment? Many real estate investors have asked themselves if buying a property in Baltimore 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 2021.

Baltimore looms large in American history. First settled in the 1600s, it was one of the largest cities in the U.S. in the colonial era. It is often thought of as a distant suburb of Washington D.C. today, an industrial city on the decline. Yet this city is experiencing a turnaround that presents a unique opportunity for real estate investors. The Baltimore real estate market offers a variety of properties for buyers who are looking for a place to call home.

Baltimore is home to around 600,000 people. The Baltimore housing market at first blush would seem like a bad investment since the city saw a nearly 5% drop in population from 2000 to 2010. This is a continuation of a decades-long flight from the city; between 1970 and 2000, the total population declined by almost a third. However, there is a significant opportunity in the Baltimore real estate market for investors, and not just because the metropolitan area is home to nearly three million people.

If you are looking to make a profit, you don’t want to buy the most expensive property in the Baltimore 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 Baltimore 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.

According to Neighborhoodscout.com, a real estate data provider, three and four-bedroom row houses are the most common housing units in Baltimore. Other types of housing that are prevalent in Baltimore include large apartment complexes, duplexes, single-family detached homes, and homes converted to apartments. Baltimore has a mixture of owners and renters, with 45.50% owning and 54.50% renting. Let’s take a look at the number of positive things going on in the Baltimore real estate market which can help investors who are keen to buy an investment property in this city.

The Student Market

If you want to invest in the Baltimore real estate market aimed at students, Baltimore is a rich target. The University of Maryland and John Hopkins University are two large pools of students in the Baltimore area, but they aren’t the only ones. Coppin State University is home to around 4000 students, while Morgan State University houses six thousand. The University of Baltimore has five thousand students enrolled, though this college is sometimes confused with the University of Maryland Baltimore campus of similar size. Johns Hopkins has around 20,000. If you’re more interested in the metro Baltimore real estate market, Towson University is also home to around 20,000 students.

The Baltimore housing market for students extends well past the neighborhoods immediately around big schools like Notre Dame of Maryland (5000 students) and Loyola (6000 students). You could buy rental properties around the Maryland Institute College of Art, Goucher College, or Sojourner-Douglass College. Note that the Baltimore housing market near Johns Hopkins also profits from the hospital of the same name, since that is one of the largest employers in the city.

A Huge Population of Working-Class Renters

Nationwide, around a third of the population rents. In Baltimore, just over 40% do. Baltimore stands out for its walkability and public transportation network. This helps explain why around two-fifths of those who rent don’t own a car, so properties in the Baltimore real estate market close to public transit command a premium.

Interestingly, one in eight homeowners in Baltimore doesn’t own a vehicle, so they bid up the price of homes near bus and train stops, too. Given the largely working-class population in the city, many of these renters cannot afford homes selling for around $160 a square foot, so they’re guaranteed to rent for the long term. Given the relatively low cost of properties in Baltimore, this creates a surprisingly good return on investment for investors in the Baltimore housing market.

As of July 16, 2021, the average rent for a 1-bedroom apartment in Baltimore, MD is currently $1,200. This is a 24% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Baltimore decreased by -33% to $978. The average rent for a 1-bedroom apartment decreased by -26% to $1,200, and the average rent for a 2-bedroom apartment decreased by -23% to $1,400.

• The average rent for a 2-bedroom apartment in Baltimore, MD is currently $1,400, a 13% decrease compared to the previous year.
• The average rent for a 3-bedroom apartment in Baltimore, MD is currently $1,550,  a 3% increase compared to the previous year.
• The average rent for a 4-bedroom apartment in Baltimore, MD is currently $1,850, a 0% increase compared to the previous year.
• The average rent for a 1-bedroom apartment in Downtown Baltimore is currently $1,450, a 9% increase compared to the previous year.

Baltimore’s Foreclosure Bounty

Foreclosure has made the news repeatedly for foreclosure abuse and extreme cases that led to the loss of homes. The rules result in people periodically losing their homes due to hundreds of unpaid utility bills. (A $350 water bill can be enough to start the process with the water authority. Baltimore also has a low threshold for foreclosing on properties for delinquent property taxes; the city can have a tax sale due to unpaid tax bills. In Baltimore City, a house may be placed in a tax sale if you are delinquent $750 in property taxes (or other municipal liens, including water bills).

In other counties, a homeowner has their home placed in a tax sale for as little as $250 in delinquent property taxes. This means there is an unusually large number of significantly discounted foreclosures in the Baltimore real estate market. Furthermore, the low thresholds result in reasonably well-kept homes hitting the Baltimore housing market via foreclosure sales after an unexpected budget crisis, not years of neglect by homeowners.

Limited Housing Inventory Causing Steady Appreciation

For those who want to buy a home, the market cannot meet demand. The Baltimore metro area has a low inventory of quality single-family homes relative to demand. This is why the median sales price in the first quarter of 2021 was $305,500, an increase of 11% from the previous year. Sales volume was up 14 percent year over year, but active listings were down, a symptom of declining inventories and faster turnaround. Median days on the market figure was just under 40 days, 8 days less than in 2017. This limited inventory relative to high demand will keep home prices growing for the foreseeable future.

Affordable Entry for Investors

After setting aside the possibility of snapping up homes by buying tax and utility liens, the Baltimore area remains an affordable metro area to invest in. There is a significant price variation. For example, homes in Baltimore City have a median sale price of around $220K. At the other end of the market, the most expensive suburb of Baltimore, Howard County, had a median home sell for roughly $482K in June 2021. This means you can buy luxury homes in Baltimore’s suburbs that cost less than a fixer-upper in many hot markets.

The Job Hotspots

Amazon has set up several fulfillment centers in Baltimore. They’re taking advantage of Baltimore’s harbor, cheap real estate, and transportation links to the rest of the Northeast. Every one of these centers provides more than a thousand jobs, and the Baltimore housing market in their vicinity becomes hot because people move to where there is work. The Baltimore real estate market around the new industrial parks built to cater to Amazon will boom because we can expect as many jobs from Amazon’s suppliers in those areas as Amazon itself – and those workers will want to live close to work.

Pockets of Revitalization

Eighteen different neighborhoods in Baltimore were identified for renewal. East Baltimore in particular has been targeted for revitalization, and the money is already flowing in for projects. New infrastructure built by the city includes enhanced bus stops, dedicated bus lanes, rail improvements, and road improvements. They’re also tearing down old abandoned industrial buildings to open up large construction sites and giving tax breaks for new construction.

Baltimore Investment Properties

Investing in Baltimore real estate can be a worthy investment due to a steady rate of appreciation. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Should you consider Baltimore real estate investment? The Baltimore real estate market has been in decline for years, but several spots offer significant returns. And there are signs that the city is starting to turn around. Good cash flow from Baltimore investment properties means the investment is, needless to say, profitable.

On the other hand, a bad cash flow means you won’t have money on hand to repay your debt. Therefore, finding a good Baltimore real estate investment opportunity would be key to your success. If you invest wisely in Baltimore real estate, you could secure your future. The best investment is now looking for a rental property that will generate good cash flow. Your best tenants would be the retirees who intend to relocate to Baltimore and want to purchase property to rent out. The running costs for owning and managing a Baltimore rental property should not be high.

While hiring a property management company you should expect to give up roughly ten percent of the rent for each property they manage. Remember to factor this loss into your calculations when budgeting for a new rental property. The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Baltimore investment property and you should be able to get a good return on your investment over the long term.

The neighborhoods in Baltimore must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Baltimore might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplex and triplex in Class A neighborhoods. The inventory is low, but opportunities are there.

Some of the popular neighborhoods in Baltimore are Guilford, Riverside, Mount Vernon, Fells Point, Federal Hill-Montgomery, Brooklyn, Canton, Inner Harbor, Charles Village, Belair-Edison, Bolton Hill, Roland Park, Remington, Homeland, and Locust Point.

Even as Baltimore's home prices have reached new heights, they are still near to the national average, and the market remains attractive to residential real estate investors. As they continue to compete for potential investment properties at the lower end of the market, the challenges for first-time homebuyers will remain. Millennial homebuyers can’t outbid real estate investors and hence end up renting. As with any real estate purchase, act wisely. Evaluate the specifics of the Baltimore housing market at the time you intend to purchase.

Hiring a local property management company can help in finding tenants for your investment property in Baltimore. If it is your first time investing in Baltimore real estate, then you would have to be aware of common beginner’s mistakes. Beginners would usually follow the media, buy a property, and wait for its value to increase. This could be risky. Real estate investing requires research. We recommend doing your research or hiring a real estate investment specialist for guidance.

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

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

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

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

Maryland is bounded on its north by the state of Pennsylvania. Philadelphia is the largest city in Pennsylvania and the second largest on the East Coast. It is the sixth biggest city in the United States. The Philadelphia real estate market offers an ideal mix of affordable properties you can snap up and a large population of renters who aren’t going to buy homes any time soon. You won’t face the same hostility as a landlord as you might in New Jersey or New York, whether renting to long-term tenants or tourists.

Another hot real estate where you can invest for the long term is Harrisburg, PA. Baltimore is connected to Harrisburg through the BALTIMORE-HARRISBURG EXPRESSWAY. The expressway functions as an important commuter route between the Baltimore Beltway and the Cockeysville-Hunt Valley area and has aided commercial and industrial development along this corridor. Harrisburg has a more favorable legal and tax climate, and it is stable. That makes it a good choice for real estate investors as long as you are investing in rental income instead of massive capital gains. And you could still earn a lot of money with fix-and-flip in the Harrisburg housing market.

In the same state, you'd find the city of Pittsburgh, which is home to approximately 90 diverse and eclectic neighborhoods and many of them offer convenient access to downtown and urban amenities. The overall stability of Pittsburgh’s economic outlook has contributed significantly to the gains seen in the real estate market. Pittsburgh is seeing an incredible renaissance, unlike many other Rust Belt cities. It is attracting new residents, redeveloping its downtown. And it is an excellent place to invest in real estate while it is still in the early stages of its rebound.

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

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

References

• Foreclosures
  http://www.baltimoresun.com/news/opinion/editorial/bs-ed-tax-sales-20170604-story.html
  http://www.baltimoresun.com/news/opinion/oped/bs-ed-tax-sale-reforms-20141028-story.html
  https://www.realtytrac.com/statsandtrends/foreclosuretrends/md/baltimore-city-county/baltimore/
• Demographics
  http://graphics.wsj.com/baltimore-demographics/
• Inventory
  http://www.rbintel.com/blog/baltimore-area-housing-market-kicks-2018-lowest-inventories-2005
• Luxury market
  https://www.bizjournals.com/baltimore/news/2018/06/19/take-a-glimpse-inside-the-modern225-north-calvert.html/
• Universities
  https://en.wikipedia.org/wiki/List_of_colleges_and_universities_in_Baltimore
• Rental Pool
  http://www.pewresearch.org/fact-tank/2017/07/19/more-u-s-households-are-renting-than-at-any-point-in-50-years
• Amazon
  https://wtop.com/business-finance/2017/11/maryland-gets-4th-amazon-fulfillment-center-1500-jobs
• Co-working / co-living
  https://technical.ly/baltimore/2016/06/24/best-coworking-spaces-baltimore
• Revitalization
  https://www.baltimorecountymd.gov/Agencies/planning/neighborhoodresponse/commrevitalization/
  https://foxbaltimore.com/news/local/east-baltimore-neighborhoods-get-30m-grant-for-revitalization
• Housing Market Data, Trends, and Statistics
  https://www.zillow.com/baltimore-md/home-values
• http://www.mdrealtor.org/Resources/Publications/Monthly-Housing-Statistics
  https://www.redfin.com/city/1073/MD/Baltimore/housing-market
  https://www.realtor.com/realestateandhomes-search/Baltimore_MD/overview

We’ll be discussing the latest Orlando real estate market trends & forecasts to find out how they can affect homebuyers and sellers in the next twelve months. Tight inventory and buyers returning to the market who were hesitant after the start of the pandemic means Orlando home prices are expected to remain strong in 2021. As per the current market trends, Orlando is all set to remain a seller's market in the next 12 months. In May 2021, home sales in the Orlando area spiked 82% over the same time last year, according to the latest report from the Orlando Regional REALTOR® Association (ORRA).

A total of 3,872 homes were sold in May which shrank the inventory by 61% year-over-year. However, it was a 5% decrease in the 4,081 sales from April 2021. A drop in sales from April 2021 to May 2021 as a result of inventory shortages is consistent with national trends. The number of days on market (DOM) has fallen to an average of just 36 days, which’s down 25% from May 2020 and 14% from the previous month, April 2021.

Overall State of the Market: “Demand remains so high, new listings are snatched up almost as soon as they’re on the market. While inventory has increased, there is a long line of buyers waiting for homes to hit the market,” said Natalie Arrowsmith, 2021 Orlando Regional REALTOR® Association President, NextHome Arrowsmith Realty. “With low-interest rates and record prices, we are seeing an increasing number of sellers looking to take advantage of the market conditions as we move into summer.”

Orlando Housing Affordability 2021

The local realtors anticipate that home prices would rise due to tight inventory and pent-up demand. According to ORRA, the average interest rate paid by Orlando homebuyers in May was 2.97%, down from 2.98% the month prior. The Orlando housing affordability index for May was 125.15%, down from 127.08% last month. The first-time homebuyer affordability index decreased to 88.99% from 90.37% last month. The index is based on a 10% down 90% Loan to Value Ratio. An affordability index of 99% means that buyers earning the state-reported median income are 1% short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.

• Median Price: $300,000
• Interest Rate: 2.97%
• Down Payment: $60,000
• Mortgage Amount: $240,000
• Monthly Payment: $1,008.36
• Income to Qualify: $48,401
• Median Income: $60,572
• Affordabity Index: 125.15%

Orlando Real Estate Market Trends 2021 (Describes May)

According to the national real estate brokerage, Redfin, the Orlando housing market is very competitive. The average sale price of a home in Orlando was $297,000 last month, up 11.7% since last year. In June 2021, Orlando home prices were up 15.7% compared to last year, selling for a median price of $319K. On average, homes in Orlando sell after 9 days on the market compared to 26 days last year. Hot homes can sell for about 2% above the list price and go pending in just 4 days. There were 1,508 homes sold in June this year, up from 1,137 last year.

According to Realtor.com's May 2021 market report, Orlando is a seller's market report, which means that more people are looking to buy than there are homes available.

• The median list price of homes in Orlando, FL was $305K, trending up 9.6% year-over-year.
• The median listing price per square foot was $184.
• The median sale price was $300K.
• Sale-to-List Price Ratio: 100% — a seller would always prefer scenarios that can yield a ratio of 100% or higher while a buyer would prefer a sale to ask price ratio that’s closer to 90%.
• On average, homes in Orlando, FL sell after 48 days on the market.
• The trend for median days on market in Orlando, FL has gone down since last month, and slightly down since last year.
• Lake Nona South has a median listing price of $599,000, making it the most expensive neighborhood.
• South Semoran is the most affordable neighborhood, with a median listing price of $130,000.

Below is the latest housing market data for the Orlando Area released by the Orlando Regional REALTOR® Association (ORRA). It clearly shows us that Orlando is a hot seller's real estate market and is bound to remain skewed to sellers over the next twelve months, at least.

HOUSING SUPPLY & INVENTORY

The total inventory of homes for sale is down by 61% year-over-year. It would take on average 3 weeks to sell all the available inventory in the greater Orlando area right now. Housing economists generally consider a five to six-month supply to indicate a healthy market that is balanced between buyers and sellers. Less than that is considered a seller’s market. This shows that Orlando is a seller's real estate market having low inventory combined with lots of buyers looking for properties.

A hot market would lead to a faster sale at or above the asking price. Although buying a home in a strong seller’s market can be difficult, it’s still possible to secure a deal. Don't forget that mortgage rates are at their record lows. The 30-Year Fixed-Rate in June 2021 was 2.98%, a dramatic difference from the past two years: 3.16% in 2020 and 3.80% in 2019.

ORLANDO MEDIAN HOME SALES PRICE

Low inventory coupled with high demand continues to drive up home prices. The median price for all types of homes increased by 15% from May 2020 to May 2021. The overall median home price (all types of properties) in the Orlando area is $300,000, according to the Orlando Regional Realtor® Association.

• The median price for single-family homes rose by 23% year-over-year.
• For condos, there was also a significant change in price from year to year (+14%).
• For duplexes, townhomes, and villas, the median price was up 21% from last year.

HOUSING SALES YEAR-OVER-YEAR COMPARISON

ORRA's latest report shows the number of pending home sales has increased by 19 percent YTY in May 2021. The number of new homes listed for sale also increased by 16% year-over-year.

• A total of 3,872 properties were sold in May 2021, accounting for a 15.43% increase over May 2020, when 2,127 homes were sold.
• Single-family home sales were up 63% from last year.
• Condo sales were up by a whopping 206% from last year.
• Townhome/Villa sales were up by 131% from last year.

Note: ORRA REALTOR® sales represent sales involving Orlando Regional REALTOR® Association members, who are primarily – but not exclusively – located in Orange and Seminole counties.

ORLANDO MSA REAL ESTATE SALES 2021

Year-to-date sales are up 100% from last year, with 28,242 housing units sold out. Across the entire Orlando MSA, home sales grew in May.

Each county's year-to-date (Jan to Jun) sales comparisons are as follows:

• Lake: 3,245 housing units were sold, up 11.49% above last year.
• Orange: 9,272 housing units were sold, up 32.83% above last year.
• Osceola: 4,256 housing units were sold, up 15.07% above last year.
• Polk: 5,572 housing units were sold, up 19.73% above last year.
• Seminole: 3,261 housing units were sold, up 11.55% above last year.
• Volusia: 2,636 housing units were sold, up 9.33% above last year.

Orlando Real Estate Market Forecast 2021-2022

Orlando's housing market will continue the trend of the last few years as a strong sellers' market. It is also one of the hottest real estate markets for investing in real estate. What are the Orlando real estate market predictions for 2021 & 2022? Let us look at the price trends recorded by Zillow over the past few years. Since 2012, the Orlando typical home values have appreciated by nearly 136% (Zillow Home Value Index). For your information, ZHVI is a seasonally adjusted measure of the typical home value and market changes across a given region and housing type.

It reflects the typical value for homes in the 35th to 65th percentile range. ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. The typical home value of homes in Orlando is currently $292,716. It indicates that 50 percent of all housing stock in the area is worth more than $292,716 and 50 percent is worth less (adjusting for seasonal fluctuations). In June 2020, the typical value of homes in Dallas was around $267K.

Orlando home values have gone up by 10.2% over the last 12 months alone. The Zillow Buyer-Seller Index (BSI), which is computed monthly, considers Orlando a hot seller’s real estate market. There exists a limited supply of homes in Orlando, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers.

Similar growth has been recorded by NeighborhoodScout.com. Their data also shows that Orlando real estate appreciated 96.57% over the last ten years. Its annual appreciation rate has been averaging at 7% — more than the national average. This figure puts Orlando in the top 10% nationally for real estate appreciation.

During the latest twelve months, the Orlando appreciation rate was nearly 6.3%, and in the latest quarter, the appreciation rate was nearly 1.52%, which annualizes to a rate of 6.23%. This figure matches Zillow's positive forecast, which predicts that home prices in this region are expected to increase in the next twelve months. So, if you invest now, then after twelve months, you can expect a good return on investment.

The shortage of supply and an increase in the demand for housing from new homebuyers will push the prices higher in the next twelve months. Low mortgage rates will bolster the home buying market and continue pushing up home price growth. For sellers, now is the opportune time to put their Orlando home up for sale. The pricing of homes is trending higher and is more attractive for sellers in the current phase.

Here is the latest housing forecast for Orlando and Orlando MSA until May 2022. Orlando is the hub city of the Orlando-Kissimmee, Florida, Metropolitan Statistical Area, colloquially known as “Greater Orlando” or “Metro Orlando”. The area encompasses four counties (Orange, Osceola, Seminole, and Lake), and is the 26th-largest metro area in the United States.

• Orlando home values have gone up 10.2% over the past year and will continue to rise in the next twelve months.
• Orlando-Kissimmee-Sanford Metro home values have gone up 9.3% over the past year and Zillow predicts they will rise 15.5% in the next twelve months.
• Orange County home values have gone up 10.0% over the past year and will continue to rise in the next twelve months.
• Osceola County home values have gone up 7.3% over the past year and will continue to rise in the next twelve months.
• Seminole County home values have gone up 9.5% over the past year and will continue to rise in the next twelve months.
• Lake County home values have gone up 10.4% over the past year and will continue to rise in the next twelve months.

The chart below, created by Zillow, shows the growth of median home values since 2011 and their forecast until May 2022.

The change in home prices for Orlando-Kissimmee-Sanford, FL is shown below for the three time periods (data up to 3rd Quarter, 2018). The Orlando Home Price Index has increased for the last 25 consecutive quarters. The highest annual change in the value of houses in the Orlando Real Estate Market was 32% in the twelve months ended with the 4th Quarter of 2005.

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? It is quite evident that the ongoing pandemic has not had any major impact on Orlando's housing market. However, it was quite expected that social distancing, higher unemployment, and lower overall economic activity would constrain real estate activity in the near term. And it did happen from April onwards.

The sales took a massive hit in the past couple of months with signs of great recovery in July. After three months of year-over-year declines, sales in July have bounced back. The industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges.

COVID-19’s impact on the Orlando housing market was not that extreme but according to ORRA, any future depression in sales can be attributed to an accelerating lack of inventory. We can see that supply remains very low indeed. The overall inventory of homes that were available for purchase in May 2021 represents a decrease of 61% when compared to last year. The same trend can be seen for single-family homes. There were 62% fewer single-family homes when compared to last year.

What does it mean for homebuyers in Orlando? The biggest mistake buyers make is sitting around waiting for sale prices to decline while their potential mortgage payment plummets. Mortgage rates are at their lowest ever. This is the time for buyers to take advantage before they are increased again. Properties purchased today are expected to continue appreciating over the next 12 months.

In conclusion, we can say that Orlando and the entire metro area market is so hot that it cannot shift to a complete buyer’s real estate market, for the long term. 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, Orlando can become a buyer’s real estate market if the supply increases to more than five months of inventory.

And that’s not going to happen. We can conclude that demand has not only recovered from the COVID-19 pandemic but has reached heights that make it very strong by any historical standard. Hence, Orlando real estate market remains strong and skewed to sellers, due to a persistent imbalance in supply and demand.

Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control. Many variables could potentially impact the value of a home in Orlando in 2021 (or any other market) such as big changes in the distressed, new-construction, or luxury home segments. There are also a wide variety of economic and political factors that can and do impact real estate markets. Most of these variables are difficult to predict in advance. 

Orlando Real Estate Investment: Should You Invest in Orlando?

Is Orlando a Good Place Real Estate Investment? Many real estate investors have asked themselves if buying rental property in Orlando 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 Orlando housing market 2021 forecast for answers on why to put resources into this market. Let’s talk a bit about Orlando the surrounding metro area before we discuss what lies ahead for investors and homebuyers. The City of Orlando is nicknamed “the City Beautiful and is one of the most-visited cities in the world primarily driven by tourism, major events, and convention traffic.

Orlando's housing market is expanding at a great pace and people from all over the country and even beyond are either choosing to move permanently or invest here. Orlando has once again proved to be one of the best places to invest in real estate in Florida. Owing to its picturesque beaches, rapidly improving quality of life, booming population, and economy, Orlando is proving to be a secure real estate investment destination for not only local but also international investors. Compared to other cities with competitive real estate markets, investing in Orlando real estate makes more sense since it has experienced a 14.6% increase in the median home price (all residential) since November 2019.

Not to mention, the Orlando region is booming in terms of both population and jobs. From the years 2016-2019, Orlando achieved an 11% growth rate, according to the Orlando Business Journal. According to Orlando Weekly, the Central Florida region will have 5.2 million people calling the area home.

The city is ranked #3 on the AdvisorSmiths report analyzing the best cities with job growth. There is a great demand for rental properties due to the high proportion of renters (65.29%). Moreover, Orlando's real estate prices remain highly affordable with a median value of $275,000 (as of Nov 2020). We can say that this is true for the entire Florida real estate market.

According to Zillow, the first-time buyers in the U.S. looking for an affordable home without much competition may have the best luck in the State of Florida, with Orlando real estate market ranked high in the “Top 10 best cities for first-time homebuyers.” Compared to saturation in similar markets in other cities like New York, Orlando has all the indicators of a flourishing growth in the coming years.

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

Increasing Foreign Investment in Orland0

International investors from all major countries of the world are exhibiting their interest in the Orlando real estate market because of its beautiful scenery, improving quality of life, and ambient weather. It is also extremely popular for foreign investments because of its intercultural connectivity with people from various Latin American countries. In addition to this, many Chinese, as well as Spanish and Middle Eastern investors, are also attracted to Orlando, FL for real estate investment.

Dramatic Population Growth

Owing to people from various walks of life and demographic differences choosing to reside in the suburbs of Orlando, this city is going through major population growth. During the last 3 years, the population in Orlando has been growing at a rate of 7.2% which has never been experienced by this city before. The current population of Orlando in 2020 is 1,964,000, a 2.13% increase from 2019. The population of Orlando in 2019 was 1,923,000, a 2.18% increase from 2018.

Orlando is rapidly becoming a central attraction for businessmen, students, and small families owing to its growing trend of upward life mobility which makes lures investors to invest in the Orlando real estate market. Another reason for the growing economy and population expansion in Orlando, Florida, is the developed transportation infrastructure which makes traveling between destinations more convenient. Generally, Florida has an efficient transportation network that complements its tourism growth as well.

Orlando's Increasing Job Opportunities

While improving the Orlando real estate market and flourishing tourism are two of the most important reasons behind Orlando’s economic stability, these two industries have a lot to gain from the successful economy. This expansion is related to the growing population and job opportunities in this city, this translates to more rental income and tourism leading to a better economy for the city. Orlando is the new hub for many young professionals especially those with various types of technological expertise, including engineers and IT professionals.

This city has experienced annual job growth of around 4.4% and is also one of the fastest-growing metro areas in the country. The city is also set to experience its highest job growth rate in the 10 years to come. A market with high job growth is a great market for real estate investment as well. Orlando metro area is adding STEM jobs at a faster clip than the Bay Area metros. The Orlando–Kissimmee–Sanford MSA was ranked among Forbes’ 15 Best Big Cities for Jobs. They cited Orlando’s science, technology, engineering, and mathematics (STEM) job growth in recent years as one contributing factor.

Orlando's Rental Market

Thanks to a strong economy, Orlando's rental market continues to boom. It is consistently named as one of the best rental markets in the nation and the #1 place in Florida to buy a profitable rental property. While tourism is one of the driving forces in the local economy, Orlando is also an important high-tech hub. Since job opportunities in Orlando are growing, people from all over the country and even some other countries are choosing to move here.

This directly translates to a boom in rental income as there is a resultant increase in the demand for both residential and commercial property rentals, and this means more steady income for investors in Orlando real estate market. The soaring rental rates are good signs for real estate investors. Around 46% of the households in Orlando, FL are renter-occupied.

Current Rental Market Trends

The average size for an Orlando, FL apartment is 962 square feet with studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage. About 60% of the apartments can be rented for $1,500/mo or less. 26% of the apartments fall in the price range of $1,501-$2,000, and only 8% are as expensive as $2,000/mo.

As of July 4, 2021, the average rent for a 1-bedroom apartment in Orlando, FL is currently $1,350. This is a 10% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Orlando increased by 5% to $1,416. The average rent for a 1-bedroom apartment increased by 6% to $1,350, and the average rent for a 2-bedroom apartment increased by 3% to $1,495.

• Two-bedroom apartment rents average $1495 (a 7% increase from last year).
• Three-bedroom apartment rents average $1900 (a 12% increase from last year).
• Four-bedroom apartment rents average $2275 (an 11% increase from last year).

Flexible Tax Laws

Investing in Orlando's real estate market can help investors to lighten their taxes as Florida is one of the few states with no personal income tax. Its flexible tax laws are a blessing for investors especially in this climate of a booming economy. Tax laws in Florida are considered to be the 4th friendliest laws in the country which is why a significant number of businesses choose to be based here.

Florida does impose a 5.5 percent corporate income tax. Orlando, owing to its friendly tax environment and affordable real estate can prove to be a vital opportunity for up and coming start-ups. Entrepreneurs and small business owners can rent showrooms and shops on better terms than most other cities and states.

Orlando is a Top-notch Tourism Center

Orlando has been boasting of economic stability since the beginning of the year 2018, and tourism growth and opportunities are some of the main reasons for its smooth expansion. Considered to be a “Theme-Park Capital of the World,” Orlando attracts most of its tourism due to the presence of Universal Studios as well as SeaWorld, and the most popular, Disneyland. In addition to this, Orlando’s beautiful beaches and warm weather also attract thousands of tourists every year.

Maybe you have done a bit of real estate investing in Florida but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Speaking about Orlando's real estate market has a high potential for growth considering the current state of its economic expansion and population influx. This market currently has an ideal environment for US investors in housing properties, especially for turnkey real estate investments.

Good cash flow from Orlando rental property 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 Orlando in a growing neighborhood would be key to your success. When looking for real estate investment opportunities in Orlando or anywhere in the country, the generally accepted standard is to purchase a property that will give you a modest but minimum of 1% profit on your investment. An example would be: at $120,000 mortgage or investment cost, $1200 per month rental.

That would be the ideal equation for example. Even with rent increases, buying a $500,000 investment property in Orlando is not going to get you $5000 per month on rent. When looking for the best real estate investments in Orlando, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing.

Here are the ten neighborhoods in Orlando having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

1. Shiloh / Dummit Grove
2. S Semoran Blvd / Curry Ford Rd
3. Boggy Creek Rd / Dowden Rd
4. Manatee St / Hoffner Ave
5. Omara Ct / S Goldenrod Rd
6. E Colonial Dr / Barton Dr
7. S Goldenrod Rd / Curry Ford Rd
8. Dorado Ave / San Juan Blvd
9. Stonecastle Rd / Thrippence Ln
10. U of Central Florida / N Tanner Rd

Florida is a great place to invest in real estate with several affordable and growing markets. The state will continue growing by more than 300,000 people a year and will top 22 million residents in 2022, according to a report posted online by state economists. That's equal to adding a city slightly larger than Orlando every year. The report estimated the population on April 1, 2018, at 20.84 million, with it increasing to 21.2 million on April 1, 2019. It is forecast to hit 22.2 million as of April 1, 2022, and be at 22.8 million on April 1, 2024. The population increases will primarily stem from “net migration” as people move into the state, rather than births, which are largely offset by deaths.

Several Fortune 500 corporations call Florida home including World Fuel Services, Publix Super Markets, Auto Nation, Office Depot, Hertz, Fidelity National Financial, and Lennar Corp. With a diverse collection of industries supporting Florida’s economy, it further strengthens the drive for workers to want to live and work here. Those factors in turn create a strong demand for rental properties and increasing rental rates.

While there are investment opportunities in the Florida housing market, major metros are some of the most popular choices, like Jacksonville, Orlando, Miami, St. Petersburg, and Tampa. The real estate in Tampa Florida has been estimated to grow rapidly during 2020. Investors are recommended to buy properties now and hold on to them until good price appreciation for maximum return on investment. The Tampa real estate market has been seeing constant development for the last two years, a trend that does not seem to be stopping any time soon.

Tampa has the headquarters of four Fortune 500 companies which makes it a moderately attractive city for work and economic growth. In addition to this, many entrepreneurs and small businesses are also making their way to Tampa for the search for better prospects and lesser expenses for running their start-ups. Acquiring residential spaces is one of the earliest priorities for such professionals when they move here.

Tampa, FL has a very diverse economy with financial services, STEM, health care, research, education, tourism, beaches, and military bases all making significant contributions to jobs and growth. These factors make the Tampa housing market a hot destination for real estate investors in 2019.

You can also invest in another hot market in Ocala, Florida. Ocala is an affordable real estate market for investors who can still reap a decent return on investment. The area has recovered from the Great Recession, and several factors will insulate it from a future downturn. The Ocala housing market is buoyed by several near recession-proof industries.

It is quite affordable for investors compared to the rest of Florida markets like Tampa where the median home value is $221,500. The median home price in Ocala in 2018 was around $150,000. You can buy several homes in the Ocala FL real estate market for the price you would of one mid-market condo in the Miami real estate market.

Another market that we suggest is the housing market in Lakeland, Florida. The Lakeland housing market presents the perfect balance of currently affordable real estate for buyers and future growth. We can expect the population of the area to grow rapidly, and the renting population will grow even faster. The time to buy real estate in Lakeland is now.

While the Lakeland FL real estate market is cheaper than Orlando and Tampa, it is not a good overall value given the lower average wages of its residents. That explains why U.S. News and World Report gave the city an index score of 5.5 out of ten. This is due to the average resident earning around $23,000 a year, several thousand less than the U.S. average. Median household incomes are no better.

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

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

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

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

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

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

REFERENCES

Market Prices, Trends & Forecasts
https://www.orlandorealtors.org/marketreports
https://www.orlandorealtors.org/housingmarketnarrative
https://www.zillow.com/orlando-fl/home-values
https://www.redfin.com/city/13655/FL/Orlando/housing-market
https://www.neighborhoodscout.com/fl/orlando/real-estate
https://www.realtor.com/realestateandhomes-search/Orlando_FL/overview

Foreclosures
https://www.realtytrac.com/statsandtrends/fl/orange-county/orlando

Reasons to Invest in Orlando Florida
https://www.thebalance.com/the-best-places-to-invest-in-real-estate-4163978
http://www.noradarealestate.com/blog/best-cities-to-invest-in-real-estate-in-2018
https://www.mashvisor.com/blog/orlando-real-estate-market-new-investors
https://www.lee-associates.com/centralflorida/2018/01/15/5-reasons-to-invest-in-central-florida
https://news.orlando.org/blog/orlando-leads-nation-in-job-growth-four-years-in-a-row/