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 0.9 as of May 2022, a 50 percent increase from the previous year.

In May 2022, single-family home sales in El Paso County, Colorado increased by 4.9% while new listings increased by 18.9% year over year. The median sales price has reached a new peak of $490,000, which is +13.6% higher than last year. Total available properties for sale also increased by 63.8% year-over-year which amounts to 0.9 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 median list price of homes in Colorado Springs was $450,000 in April, trending up 14.5% year-over-year (source: Realtor.com). The median listing price per square foot was $213. Sale prices also remained strong in Colorado Springs. The median sale price was $535K. Homes in Colorado Springs, CO sold for approximately the asking price on average. The Sale-to-List Price Ratio was 100.01%.

Colorado Springs was a buyer's market last month, which means that the supply of housing is greater than the demand for housing. According to Realtor.com, the market had a total sales to total listings ratio below 0.12 which tends to favor buyers. Broadmoor has a median listing price of $875,000, making it the most expensive neighborhood. Park Hill is the most affordable neighborhood, with a median listing price of $339,000. The median list price in East Colorado Springs is $400K, which represents a nearly 14 percent increase year-over-year.

Colorado Springs Housing Market Trends 2022

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 2022, which was released by the Colorado Association of REALTORS®. The sales data is for Single Family Homes in El Paso County, CO.

The median sales price was $490,000, up 13.3% from last year.

The average sales price was $552,896, up 13.4% from last year.

New Listings were up 18.9% from last year.

Sold Listings were up 4.9% from last year.

Percent of List Price Received = 103.3%, -1.7%.

Days on Market Until Sale were 9, the same as last year.

The inventory of Homes for Sale was up +63.8%.

Months Supply of Inventory was 0.9, an increase from May 2021 (0.6 months).

Colorado Springs Real Estate Market Forecast 2022-2023

What are the Colorado Springs real estate market predictions for 2022-2023? 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 the last decade (July 2012), the typical home values in Colorado Springs have appreciated by around 143.7% (Zillow Home Value Index). The home values have gone up 21% over the past year and are currently holding at $492,383. ZHVI reflects the typical value for homes in the 35th to 65th percentile range.

Colorado Springs has been a 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.

• The typical value of homes in the Colorado Springs Metro Area is $493,525.
• Home values have gone up 20.9% over the past year.
• Zillow predicts they will rise 12.3% by May 2023.
• If this forecast is correct, Colorado Springs home prices will be higher in the 3rd Quarter of 2023 than they were in the 3rd Quarter of 2022.
• Colorado Springs (City) home values have gone up 21% over the past year and will continue to rise in the next twelve months.
• El Paso County home values have gone up 21.1% over the past year ($495,786 – May 31, 2022).
• Teller County home values have increased 15.3% over the past year ($441,219 – May 31, 2022).

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

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 hot that it cannot shift to a buyer’s real estate market, in 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 9.31%, which equates to an annual appreciation rate of 42.75%, 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.

According to Realtor.com, the 80916 zip code in Colorado Springs was the hottest in the country in 2021. The rankings take into account market demand—as measured by unique visitors per property on the website—and the rate at which homes sell in a particular market. The hottest areas are those that have high demand from buyers, in other words, lots of unique viewers per property, and fast-selling homes, an indicator of limited supply. The hottest zip code in the U.S. last year was ZIP 80916, East Colorado Springs, Colorado.

Here were the key findings for the 80916 zip code in Colorado Springs Housing Market:

• ZIP 80916 has 15,979 housing units, and the vacancy rate is 6.9%, lower than the U.S. average (11.4%).
• Among occupied homes,65.1% are single-family homes.
• 24.5% are multi-family homes or apartments, and the rest are mobile homes and other types of units.
• Among occupied homes,65.1% are single-family homes, 24.5% are multi-family homes or apartments, and the rest are mobile homes and other types of units.
• In 2021, unique viewers per property were up 36% year-on-year in this ZIP, which received 3.4 times as many views as the U.S. average.
• The median listing price in this ZIP was up 19.8% since last year, reaching $318,000.
• Despite the price growth, it is 36% lower than the Colorado Springs metro and 17% lower than the U.S, representing a very affordable housing market.

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 2022 (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 2022 & 2023. 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 June 29, 2022, the average rent for an apartment in Colorado Springs, CO is $1,190 which is a 22% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Colorado Springs remained flat. The average rent for a 1-bedroom apartment increased by 1% to $1,190, and the average rent for a 2-bedroom apartment remained flat.

• Two-bedroom apartments in Colorado Springs rent for $1,455 a month on average (an 8% increase from last year).
• Three-bedroom apartment rents average $2,100 (a 12% increase from last year).
• Four-bedroom apartment rents average $2,395 (a 6% 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 being 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 rented 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 Southwest
2. Fort Carson
3. Fort Carson South
4. Fort Carson West
5. Fort Carson Northwest
6. Spring Creek
7. Old Colorado City
8. Lowell
9. Patty Jewett South
10. Southeast Colorado Springs

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 taking 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.realtor.com/research/hottest-zip-codes-2021/
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 11.02 percent over the last year. Baltimore's appreciation rate in the most recent quarter was 0.72 percent, which equates to 2.92 percent (annual appreciation). In comparison to the rest of Maryland, Baltimore's most recent annual appreciation rate is higher than 50% of the other cities and towns in Maryland.

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 investments 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.

Statistics from Bright MLS show that The Baltimore metro area housing market began to slow before the markets in Philadelphia or Washington, DC. Historically, the Baltimore market has been more subject to economic headwinds such as increased mortgage rates and inflation than the other two metro areas.

While inventory continues to rise in the Baltimore area as demand falls, home prices are projected to rise more slowly in the coming months. Despite three consecutive months of inventory growth, supply remains very restricted in the Baltimore region. In July 2022, there was 1.21 months of supply in the metro area. But in some local markets, inventory is even tighter. On the other hand, Zillow forecasts a decline of 0.5% between July 2022 to July 2023 in Baltimore-Columbia-Towson Metro home values.

Baltimore County Housing Market Trends – July 2022

Because of historically low-interest rates, the real estate market in Baltimore was booming during the last two years. Despite rising rates, the real estate market is currently performing well. Baltimore's housing supply is consistent with the national trend of increased demand for single-family homes. Baltimore currently has less than one month's worth of housing inventory available.

State of the Market

• In July 2022, 862 housing units were sold in Baltimore County versus 1,295 last year, according to Maryland REALTORS® Monthly Statistics.
• The total number of units sold last month was lower than at this time last year, representing a 33.4% decrease over July 2021.
• The median sale price was $325,000, up 6.6 percent from the previous year.
• It means that sellers are increasing their prices in response to an increase in demand.
• The median sale price for Baltimore City was $245,000, an increase of 8.9% as compared to last year.
• 764 homes were sold in Baltimore City in July 2022 versus 999 last year, a 23.5% drop in sales.
• The median days on market were 7 in Baltimore County and 12 in Baltimore City.

Baltimore County Housing Inventory

• The total number of available homes is down by 322 units or -23.6%.
• This July, the total number of active inventory was 1,041, compared to 1,363 in July 2021.
• Baltimore County had 1.0 months of supply available, compared to 1.3 months in July 2021.

New Listings & Pending Sales

• In July there were 1219 new homes listed for sale in Baltimore County compared to 1545 in July 2021, a decrease of 21%.
• There were 986 current contracts (pending sales) compared to 1,203 a year ago.

Baltimore Listing Price Trends 2022

• Baltimore was a seller's market in April 2022 as it had a total sales-to-total listings ratio above 0.2 which tends to favor sellers.
• According to Realtor.com, in July 2022, the median list price of homes in Baltimore County was $339.9K, trending up 6.3% year-over-year.
• If Median Listing Price is trending up, the market may be “hot” and homes will likely be selling more quickly.
• Sellers have the advantage when prices are going up.
• The median sale price was $325K.
• Sale-to-List Price Ratio: 100.06%
• Ideally, a buyer would prefer a sale-to-ask price ratio that’s closer to 90%.
• A seller would always prefer scenarios that can yield a ratio of 100% or higher.

Greater Baltimore Housing Demand Drops in July

According to the Bright MLS T3 Home Demand Index (HDI), buyer demand has been tracked lower than last year. The index for the
Baltimore metro area was 114 in July (Moderate), down from 124 a year ago (Moderate) and down slightly from June (116). Demand dipped slightly between June and July for higher-priced homes and condominiums in Baltimore. Buyer demand remained steady for moderate-priced homes and condominiums in July.

Here are the key findings for Greater Baltimore (the city and surrounding suburbs in Baltimore County) published by Bright MLS, the multiple listing service serving Baltimore and throughout the Mid-Atlantic region.

The pace of home sales activity in the Baltimore metropolitan area continues to slow as purchasers retreat in the face of rising mortgage rates and stubbornly high inflation. Sales in the region have been declining since December 2021. Despite this downturn, sales activity in Baltimore has increased. During 2019, the region remained higher than the sales totals.

Prices in the Baltimore metropolitan area continue to climb but at a slower rate. price growth has decelerated. The median sales price in July was $369,450 in the region, a 5.3% rise over the previous year. There were 4,648 active listings across the country at the end of July. Baltimore region, an 18.7% gain from a year ago and the 3rd Month after month of year-over-year inventory growth.

The rise in supply is being driven by slower sales activity, as the number of new listings continues to fall short of last year's levels. Despite an expansion of inventory, there remain only 1.21 months of supplies in the Baltimore area and the total stockpile remains below half of what it was in 2019.

There were 3,411 closed sales in July across the Baltimore metro area, the lowest July sales total since 2014. Sales were down 24.5% compared to a year ago, reflecting a pullback in buyer activity. The number of sales declined by about 24% in July for all housing types—single-family detached, attached/townhomes, and condominiums.

Home sales activity continues to slow in the Baltimore metro area. Sales are down in all local markets in the region, with the sharpest
year-over-year decline in Howard County (-30.4%). Sales were also down in Baltimore City, but the city was the only market where July 2022 sales topped July 2019 sales. Prices continue to rise in the region, though at a slower pace. The fastest price growth in July was in Carroll County, where the median price was up 11.9% compared to a year ago. The slowest price growth was in Howard County (+3.6%).

Baltimore Real Estate Market Forecast 2022-2023

What are the Baltimore real estate market predictions for 2022 to 2023? 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 the last decade (Sept 2012), the typical home value in Baltimore County has appreciated by around 47.8% (Zillow Home Value Index).

<<<Also Read: Maryland Housing Market Forecast>>>

Baltimore home values have gone up 9.9 percent over the past year alone. The typical value of homes in Baltimore County is currently $332,726. It indicates that 50 percent of all housing stock in the area is worth more than $332,726 and 50 percent is worth less (adjusting for seasonal fluctuations). 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 is $377,480.
• Baltimore-Columbia-Towson Metro home values have gone up 9.5% over the past year.
• Zillow predicts that home values will decline by 0.5% between July 2022 to July 2023.
• Baltimore City homes are affordable with a typical home value being $205,016, up 10.% over the past year.

Here is the Baltimore-area real estate price appreciation graph by Zillow since 2012.

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 2022 or 2023.

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. Today, it is often thought of as a distant suburb of Washington D.C., 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. At first, the Baltimore housing market 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 September 02, 2022, the average rent for a 1-bedroom apartment in Baltimore, MD is currently $1,325. This is a 4% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Baltimore increased by 5% to $1,250. The average rent for a 1-bedroom apartment decreased by -3% to $1,325, and the average rent for a 2-bedroom apartment remained flat.

• The average rent for a 2-bedroom apartment in Baltimore, MD is currently $1,550, an 11% increase compared to the previous year.
• The average rent for a 3-bedroom apartment in Baltimore, MD is currently $1,625, a 2% increase compared to the previous year.
• The average rent for a 4-bedroom apartment in Baltimore, MD is currently $1,900, a 10% decrease 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 on $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 January 2022 was $318K, an increase of 6% from the previous year. January 2022 was the 3rd month with less than a one-month supply of homes and the fourth month where levels fell by -20% or more from a year ago. The constricted inventory kept sellers in the driver’s seat, with units typically going for the full asking price.

Sales volume was down 10 percent year over year, but active listings were down to a nineteen-year low, reflecting the ongoing need for housing in the metro. It is a symptom of declining inventories and a faster turnaround. The median days on the market figure rose seasonally up +1 day from a year ago. While days on the market continued to tick up month-to-month, homes are still moving quickly relative to prior Januarys over the past five years. 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 $225,000. 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 duplexes and triplexes 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.

For most investors, buying or selling real estate 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, and redeveloping its downtown. And it is an excellent place to invest in real estate while it is still in the early stages of its rebound.

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

Housing Market Data, Trends, and Statistics
https://www.brightmls.com/
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

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/

Revitalization
https://www.baltimorecountymd.gov/Agencies/planning/neighborhoodresponse/commrevitalization/
https://foxbaltimore.com/news/local/east-baltimore-neighborhoods-get-30m-grant-for-revitalization

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/