The Sioux Falls housing market has been on a roller coaster ride for the past year, with rising interest rates, limited inventory, and affordability challenges causing fluctuations in buyer and seller behavior. As we move into 2023, let's take a closer look at the latest market statistics to gain insight into what we can expect in the coming months.

Sioux Falls Housing Market Trends 

The housing market is an ever-changing landscape influenced by various factors such as interest rates, buyer affordability, and inventory levels. The REALTOR® Association of the Sioux Empire (RASE) has released its May 2023 market statistics for Sioux Falls, SD, shedding light on the current state of the local housing market. Let's dive into the key findings and understand the implications for buyers and sellers in the region.

Existing-Home Sales Decline Continues

According to the National Association of REALTORS® (NAR), existing-home sales in the United States have experienced a second consecutive month of decline, falling 3.4% as of the latest measurement. This drop can be attributed to higher interest rates impacting buyer affordability. In comparison to the same period last year, sales are down by a significant 23%, while contract signings have dropped by 20.3% year-over-year.

Relief for Buyers in Some Areas

While the overall sales figures show a decline, some parts of the country have experienced a silver lining. Buyers in these areas have found relief in declining sales prices, which have decreased by 1.7% year-over-year on a national scale. However, it's important to note that more affordable markets are still seeing price gains, indicating a complex and diverse housing landscape across different regions.

Positive Indicators in Sioux Falls

The Sioux Falls region has shown positive indicators in May 2023. New listings increased by an impressive 16.2% to reach 652, while pending sales saw a significant rise of 24.8% to reach 569. However, inventory levels fell by 4.2% to 1,285 units, potentially limiting the options for buyers. Despite this, prices continued to rise, with the median sales price increasing by 1.1% to $310,350. Days on the market also saw an increase of 5.8% to 73 days.

Limited Inventory and Buyer Empowerment

One factor contributing to the lower-than-average home sales in the current market is the shortage of inventory. Many current homeowners, who secured mortgages at rates lower than today's prevailing rates, are choosing to delay selling until market conditions improve. With only 2.9 months' supply heading into May, homes available for sale are moving quickly. On average, homes spend just over three weeks on the market, reinforcing the competitive nature of the market.

New Residential Construction Takes the Lead

As existing-home inventory remains limited, new residential construction has gained momentum. The increased demand from buyers has shifted towards the new construction market. Monthly new-home sales exceeded expectations, rising 4.1% to a seasonally adjusted annual rate of 683,000 units, the highest reading since March 2022, according to the U.S. Census Bureau. Housing starts were up 2.2% month-over-month, and permits for future single-family homes reached a 7-month high.

Sioux Falls Pending Sales and Pricing Trends

Analyzing the Sioux Falls region's housing market over the period spanning June 2022 to May 2023, pending sales experienced an overall decline of 16.4%. However, within specific price ranges, notable gains were observed. The $900K to $1M range saw an impressive increase of 81.3% in sales. The median sales price for the region rose by 11.1% to $299,900, with the previously owned segment witnessing a significant price gain of 9.8% to reach $290,000.

Varying Market Dynamics

The time taken to sell a property also varies across different price ranges. The $200K to $250K range tends to sell the quickest, with an average of 60 days on the market. On the other hand, the $1M and above range tends to sell at a slower pace, with an average of 116 days on the market. These varying market dynamics highlight the importance of pricing strategies and market positioning based on the target price range.

Sioux Falls Housing Market Forecast 2023-2024

The housing market in Sioux Falls, SD, has shown positive trends and promising growth. The average home value in Sioux Falls is currently $320,269, which has increased by 3.5% over the past year. This indicates a steady appreciation in home values in the region.

The market is highly competitive, with homes going pending in an average of around 7 days. This rapid pace of sales demonstrates the high demand for homes in Sioux Falls. Buyers need to act quickly and be prepared to make competitive offers to secure a property.

In terms of pricing, the median sale to list ratio in Sioux Falls was 0.999 as of March 31, 2023. This ratio suggests that homes in the area are typically selling very close to their list price. Additionally, a significant portion of sales, approximately 36.9%, have been recorded as selling over the list price, indicating a competitive bidding environment.

On the other hand, around 46.8% of sales in Sioux Falls were under the list price, suggesting that there are still opportunities for buyers to negotiate and potentially find properties at a lower price point.

Looking ahead, the forecast for the Sioux Falls Metropolitan Statistical Area (MSA) indicates positive growth. As of May 31, 2023, the forecast suggests a 0.5% increase in the housing market. By July 31, 2023, the forecast predicts a further 1% growth, and by April 30, 2024, the market is expected to experience a substantial 4.3% growth. These forecasts indicate a positive outlook for the Sioux Falls housing market, with continued appreciation and market activity.

Overall, the Sioux Falls housing market is characterized by a competitive environment, rising home values, and rapid sales. Buyers should be prepared to act swiftly and strategically, while sellers can take advantage of the favorable market conditions to maximize their returns. Working with experienced real estate professionals who have a deep understanding of the local market can provide valuable guidance in navigating the Sioux Falls housing market successfully.

Should You Invest in the Sioux Falls Real Estate Market?

Sioux Falls, South Dakota is a city that has been attracting a lot of attention from real estate investors in recent years, thanks to its strong economy, affordable housing, and high quality of life. If you're considering investing in the Sioux Falls real estate market, there are many compelling reasons to do so. The city's economy is diverse and growing, with major employers in healthcare, finance, and manufacturing, which has created a strong demand for housing, especially in the rental market.

Additionally, Sioux Falls has a growing population and is consistently ranked as one of the best places to live in the United States. With a focus on the keyword “Sioux Falls real estate market,” it's clear that this city is a promising destination for real estate investors looking for a stable and profitable market. However, as with any investment, it's important to weigh the potential risks and benefits before making a decision.

If you're considering investing in the Sioux Falls real estate market, here are some top reasons why it might be a good idea:

• Strong job market: Sioux Falls has a diverse and growing economy, with major employers in industries like healthcare, finance, and manufacturing. This means that there is a steady demand for housing, and the rental market is particularly strong.
• Affordable housing: The cost of living in Sioux Falls is relatively low compared to other parts of the country, which means that housing prices are also relatively affordable. This can make it easier to generate cash flow from rental properties, and there may also be potential for appreciation over time.
• Growing population: Sioux Falls has been consistently growing over the past decade, with a population increase of more than 14% since 2010. This means that there is likely to be continued demand for housing in the city.
• Quality of life: Sioux Falls is consistently ranked as one of the best places to live in the United States, with a high quality of life, a strong sense of community, and abundant outdoor recreation opportunities.
• The Low Tax Rate: One advantage of investing in the Sioux Falls real estate market is the low tax rate, as there is no state or local income tax or state business income tax. Although the state has a slightly higher than average property tax rate of 1.2 percent, the low overall property costs in Sioux Falls result in average to below-average property tax bills. Additionally, property owners in Sioux Falls benefit from the state's lack of laws on certain issues, such as the requirement to provide receipts for deposits or record deposit withholdings, though it's recommended to do so. With no state or local income tax or state business income tax, investors can potentially save money on taxes and increase their overall return on investment.

Despite these benefits, there are also some potential drawbacks to investing in the Sioux Falls real estate market. One potential concern is the risk of overbuilding, particularly in the apartment sector. There is also the risk of a downturn in the local economy, particularly if there are major shifts in industries that drive job growth in the region.

Overall, however, Sioux Falls appears to be a promising market for real estate investors, particularly those looking for strong cash flow from rental properties in a growing and stable community. As with any investment, it's important to conduct thorough due diligence and work with local experts to make informed decisions.

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 area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

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

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.

Sources:

• https://www.zillow.com/sioux-falls-sd/home-values/
• https://rase-inc.org/rase-members/monthly-rase-mls-statistics/
• https://www.redfin.com/city/15282/SD/Sioux-Falls/housing-market
• https://www.realtor.com/realestateandhomes-search/Sioux-Falls_SD/overview

Frisco, a city in Texas, is one of the most popular places to live in the state. With its booming economy, excellent schools, and thriving real estate market, it's no surprise that many people are interested in buying or renting a home in this area. In this blog post, we will explore the Frisco housing market for 2023, including the best neighborhoods, home values, and real estate trends.

The Frisco housing market for 2023 is strong, with a high demand for homes and a healthy real estate market. With excellent schools, top-rated amenities, and popular neighborhoods, Frisco is an attractive place to live for families, professionals, and retirees. Whether you're looking to buy or rent a home in Frisco, now is an excellent time to explore the city and its many offerings.

Frisco, TX Housing Market: A Snapshot of April 2023

The following housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. Frisco, Texas, known for its vibrant community and thriving economy, is a city that has garnered significant attention in the real estate market. In April 2023, the housing market in Frisco exhibited interesting trends and statistics worth exploring. From median listing prices to sale-to-list price ratios, let's take a closer look at the state of the Frisco housing market.

Median Listing Home Price: Upward Trend

In April 2023, the median listing home price in Frisco, TX stood at $725,000, showing a notable increase of 3.6% compared to the previous year. This upward trend indicates a growing demand for homes in the area and suggests that Frisco continues to be an attractive destination for potential homeowners. Furthermore, it highlights the city's resilience and stability, even amidst changing market conditions.

Median Listing Home Price per Square Foot: Assessing Value

To further evaluate the housing market in Frisco, it's essential to consider the median listing home price per square foot. In April 2023, this figure stood at $251, providing valuable insights into the cost of real estate on a per-square-foot basis. Buyers and sellers can utilize this information to gauge the value of properties and make informed decisions when it comes to investing in Frisco's real estate market.

Sale-to-List Price Ratio: Opportunities for Buyers

An important metric to consider when evaluating a housing market is the sale-to-list price ratio. In April 2023, homes in Frisco, TX were sold, on average, for approximately 2.69% below the asking price. This indicates that buyers had an opportunity to negotiate and potentially secure favorable deals. With a sale-to-list price ratio of 97.31%, Frisco presented a buyer's market during this period, suggesting that supply outweighed demand.

Median Days on Market: Quick Turnaround

The median days on the market metric provides valuable insights into the pace of real estate transactions. In Frisco, TX, homes were typically sold after an average of 24 days on the market in April 2023. This relatively short period indicates a swift turnaround, reflecting the city's desirability and the efficiency of its real estate market. It is worth noting that the median days on market have decreased since the previous month but have slightly increased compared to the same period last year.

Frisco Housing Market Forecast 2023-2024

Zillow's market overview for Frisco shows that as of April 30, 2023, the average home value in Frisco stands at $653,229. This figure serves as a benchmark for assessing the overall health and stability of the local housing market. However, it's important to note that this value has seen a slight decrease of 1.2% over the past year, indicating a potential shift in market conditions. Understanding this trend helps buyers and sellers set realistic expectations when entering the Frisco real estate market.

Median Sale-to-List Ratio: A Measure of Market Demand

The sale-to-list ratio provides valuable insights into the demand and competitiveness of the housing market. As of March 31, 2023, Frisco had a median sale-to-list ratio of 0.989, suggesting that, on average, homes were sold for approximately 98.9% of the listing price. This ratio serves as an indicator of market conditions and can help both buyers and sellers gauge the negotiation power and potential pricing trends in Frisco.

Sales Over and Under List Price: Evaluating Market Dynamics

The percentage of sales over and under the list price is a significant metric that reflects the competitiveness of the housing market. As of March 31, 2023, approximately 22.9% of sales in Frisco were above the list price, indicating strong demand and potential bidding wars for desirable properties. Conversely, about 60.0% of sales were under the list price, suggesting opportunities for buyers to find properties at a potentially lower price. These percentages highlight the dynamic nature of the Frisco housing market and the importance of understanding market dynamics.

Median Days to Pending: Analyzing Market Activity

The median number of days to pending represents the average time it takes for a property to go from listing to being under contract. In Frisco, the median days to pending stood at 7 as of April 30, 2023. This short time frame indicates a fast-paced market with high demand and suggests that properties are being snatched up quickly by motivated buyers. Understanding the speed of market activity is crucial for both buyers and sellers, as it can influence pricing strategies and decision-making processes.

Forecast for the Frisco Housing Market

Based on the current trends and data, the Frisco housing market forecast suggests a dynamic and competitive market environment. While the average home value has experienced a slight decline over the past year, the high median sale-to-list ratio indicates a potential for sellers to secure favorable deals. The presence of both sales over and under the list price showcases the market's versatility, offering opportunities for both buyers and sellers.

However, it's essential to monitor market conditions closely, as fluctuations in demand, interest rates, and external factors can influence the future trajectory of the Frisco housing market. In conclusion, the Frisco housing market forecast presents a mix of opportunities and challenges for buyers and sellers.

Should You Invest in Frisco Real Estate Market?

Investing in real estate can be a lucrative opportunity for investors looking for a long-term investment strategy. The Frisco real estate market has been growing steadily in recent years, making it an attractive investment option for many. However, like any investment, it's important to weigh the potential risks and rewards before making a decision. Let us discuss five reasons why you should consider investing in the Frisco real estate market.

• Strong Economy: Frisco is located in the heart of the Dallas-Fort Worth Metroplex, which is one of the fastest-growing regions in the United States. The area has a strong economy with a diverse range of industries, including healthcare, technology, finance, and more. This has resulted in a growing job market and a steady increase in population, which bodes well for the local real estate market.
• High Demand: Frisco has experienced a high demand for housing in recent years, driven by the growing population and the strong job market. This has resulted in a low supply of homes, creating a competitive market for buyers. As a result, home prices have been steadily increasing, providing investors with the potential for long-term capital gains.
• Favorable Market Conditions: The current real estate market in Frisco is favorable for investors, with a median sale-to-list ratio of 0.976, indicating that homes are selling for almost the asking price. Additionally, the median days to pending is only 33 days, which means that homes are selling quickly. This creates a sense of urgency for buyers, which can result in multiple offers and bidding wars, driving up the price of the property.
• Stable Rental Market: Frisco has a stable rental market, making it an attractive option for investors looking for rental properties. The area has a low vacancy rate and a growing population, resulting in high demand for rental properties. This creates an opportunity for investors to generate passive income through rental properties.
• Future Growth Potential: Frisco is projected to continue growing in the future. According to the United States Census Bureau, Frisco's population grew by 71.1% between 2010 and 2020, making it one of the fastest-growing cities in the country. This growth rate indicates the potential for continued population growth and demand for housing in the future. This means that there will likely be continued demand for housing in the area, creating a favorable market for real estate investors.
• Texas' lack of state income tax is another reason why investing in the Frisco real estate market may be attractive to some investors. By not having to pay state income tax, residents of Texas have more disposable income, which they can use to invest in real estate, among other things. This can increase demand for housing in the area, which can drive up property values and make real estate investments more attractive. Additionally, the absence of state income tax can make investing in rental properties more profitable, as landlords can potentially generate more income without having to worry about state taxes on that income. As a result, the lack of state income tax in Texas is another factor that may make investing in the Frisco real estate market more appealing to some investors.

In conclusion, the Frisco real estate market has many attractive qualities for potential investors. With a strong economy, high demand for housing, favorable market conditions, a stable rental market, and future growth potential, Frisco is a promising option for those looking to invest in real estate. However, it's important to do your research and weigh the potential risks and rewards before making any investment decisions.

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 area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

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

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

Sources:

• https://www.zillow.com/home-values/18208/frisco-tx/
• https://www.redfin.com/city/30844/TX/Frisco/housing-market
• https://www.realtor.com/realestateandhomes-search/Frisco_TX/overview

Investing in the Detroit housing market has been a source of contention for investors for a long time. When considering whether or not to add properties in the Motor City to your portfolio, keep these three current trends in mind. The city of Detroit is one of the most populous in the Midwest. It also serves as the county seat for Wayne County.

When it comes to residential in Detroit, home prices are exceptionally low. Detroit is the most affordable city. The rentals can generate extremely high returns on investment. Since the purchase price of a Detroit single-family home is significantly less, it presents a fantastic opportunity with significant returns and cash flow. It is also the fastest-growing city in the metro for rent.

The Detroit housing market has seen a lot of fluctuations in the past few years. The city has been slowly but steadily recovering from the Great Recession, which hit the area particularly hard. In this blog post, we will take a look at the current state of the Detroit housing market, based on the most recent data available. We will analyze key metrics such as home prices, days on the market, and buyer/seller competition to provide insights into what to expect in 2023.

Detroit Housing Market Trends

The Detroit housing market is known for its competitiveness and unique dynamics.  The Detroit housing market presents opportunities for both buyers and sellers. With a median sale price of $75,000 and a somewhat competitive environment, buyers may find favorable conditions for purchasing a home.

However, sellers should be aware of the longer time it takes to sell a property compared to the previous year. Homes in Detroit receive an average of 3 offers and sell in approximately 43 days. This indicates a somewhat competitive market environment. The Redfin Compete Score rates the competitiveness of an area on a scale of 0 to 100, with 100 being the most competitive. Detroit is classified as “somewhat competitive.”

Median Sale Price:

The median sale price of a home in Detroit was $75,000 last month, reflecting a decrease of 6.3% compared to the previous year. The median sale price per square foot in Detroit is $65, down 3.0% since last year.

Recent Trends in the Detroit Housing Market:

In April 2023, Detroit home prices experienced a 6.3% decline compared to the previous year, with a median price of $75,000. This downward trend suggests potential opportunities for buyers in the market.

Days on Market:

The average time it takes for homes in Detroit to sell has increased to 43 days, compared to 33 days the previous year. This indicates a slightly longer selling process.

Number of Homes Sold:

In April of this year, there were 464 homes sold in Detroit, showing a decrease from 536 homes sold in the same period the previous year. Certain homes in Detroit receive multiple offers, indicating competition among buyers. On average, homes sell for about 5% below the list price, and some hot homes can sell for around the list price.

Detroit, MI Housing Market

The following housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. Detroit, Michigan has had its fair share of ups and downs, but when it comes to the housing market, things are definitely looking up. According to the latest report, the median listing home price in Detroit was $79K in April 2023, up 5.3% year-over-year. In addition, the median listing home price per square foot was $70. The median home sold price was $72K.

While the median home price may seem low compared to other major cities in the United States, it's important to remember that Detroit is still in the midst of a renaissance. With companies like Amazon and Google setting up shop in the city, and a growing tech industry, it's no surprise that housing prices are on the rise.

Despite the increase in prices, Detroit is still considered a buyer's market as the supply of homes is greater than the demand for homes. With 182 neighborhoods in Detroit, there's a wide range of options available for buyers. Those looking for a luxurious home in a high-end neighborhood might consider Boston Edison West, which has a median listing home price of $382K. On the other hand, those on a tight budget might find Regent Park to be the most affordable option, with a median listing home price of $45K.

But what does this mean for buyers and sellers in the Detroit housing market? Here are a few key takeaways:

Buyers may be able to find a great deal. As previously mentioned, Detroit is currently a buyer's market. This means that there are more homes for sale than there are buyers, which could result in lower prices and bargaining power for those looking to purchase a home.

Sellers may still be able to get a good price. While Detroit may be a buyer's market, that doesn't mean that sellers won't be able to sell their homes for a fair price. With housing prices on the rise, sellers may be able to get more for their homes than they would have a few years ago.

Location matters. As with any housing market, location matters in Detroit. Those looking for a high-end home in a prestigious neighborhood should expect to pay more, while those looking for an affordable option may need to look in less expensive neighborhoods.

The rental market is also on the rise. With the influx of new businesses and industries in Detroit, the rental market is also experiencing growth. This could be a great opportunity for investors looking to purchase rental properties.

Keep an eye on the forecast. While the current forecast is positive, it's important to keep an eye on future predictions for the Detroit housing market. Changes in the economy or housing market trends could impact prices in the coming months and years.

Overall, the Detroit housing market is showing promising signs of growth. Whether you're a buyer, seller, or investor, there are opportunities to be found in this city. With the right research and guidance, anyone can navigate the Detroit housing market successfully.

ALSO READ: Michigan Housing Market Forecast

Detroit Housing Market Forecast 2023-2024

The Detroit housing market continues to show promising signs of growth and resilience. With an average home value of $237,422 (Zillow), which has increased by 2.9% over the past year, Detroit-Warren-Dearborn offers a promising real estate landscape for both buyers and sellers. In this forecast, we will explore the expected market trends and key statistics that contribute to the positive outlook for the Detroit housing market.

Average Home Values and Yearly Change: The average home value in the Detroit-Warren-Dearborn area stands at $237,422, reflecting a 2.9% increase over the past year. This upward trend indicates a healthy and appreciating market.

Market Forecast: Based on the latest data available as of April 30, 2023, the market forecast for the Detroit housing market shows a positive outlook. Experts predict a 3.8% increase in home values over the next year. This forecast suggests a continuation of the upward trend, making it an opportune time for buyers and sellers to enter the market.

Median Sale-to-List Ratio: The median sale-to-list ratio, which measures the percentage of the listing price that homes sell for, stands at 0.990 as of March 31, 2023. This indicates that homes in Detroit typically sell very close to their list price, highlighting a strong market demand and competitive pricing.

Sales Performance: The Detroit housing market demonstrates robust sales performance, with a significant percentage of sales occurring over the list price. As of March 31, 2023, approximately 29.0% of sales in Detroit closed above the listed price, indicating a competitive environment. Additionally, 54.8% of sales closed under the list price, providing opportunities for buyers to find properties at a favorable price point.

Days to Pending: The Detroit housing market operates at a rapid pace, with homes typically going pending in just 10 days, as of April 30, 2023. This shortened timeframe indicates a high level of demand and suggests that sellers can expect quick sales when listing their properties.

Hence, the Detroit housing market is poised for continued growth and presents favorable conditions for both buyers and sellers. With average home values on the rise, a positive market forecast, and rapid sales turnaround, it is an opportune time to participate in the Detroit real estate market. Buyers can find a range of properties at competitive prices, while sellers can take advantage of the strong demand and rapid sales process.

Here is the graphical representation of the historical Detroit metro house price growth by Zillow.

According to Neigborhoodscout, over the last decade, Detroit real estate has appreciated 87.88 percent, which equates to an average annual appreciation rate of 6.51 percent, placing Detroit in the top 40% of all cities for real estate appreciation.

Here are the best neighborhoods to invest in Detroit rentals because they have the highest appreciation rates since 2000 (List by Neigborhoodscout.com).

1. Rosa Parks Southeast
2. Corktown
3. Butzel
4. West Village
5. Rosa Parks East
6. Mcdougall Hunt West
7. Jeffries
8. University
9. Mcdougall Hunt South
10. Condon East

Detroit Real Estate Investment Overview

Detroit, Michigan is a city with a rich history, known for its role in the automobile industry and its contributions to music, art, and culture. In recent years, Detroit's real estate market has been on the upswing, making it an attractive destination for real estate investors looking for long-term returns. In this overview, we will explore the current state of the Detroit real estate market and provide five compelling reasons to invest in this market for the long term.

The typical home value in Detroit is $60,030, according to Zillow. This is significantly lower than the national median home value. However, Detroit's real estate market has been steadily improving over the past few years, with home values increasing by over 6.8% in the past year alone. This is due in part to the city's revitalization efforts, which have attracted new businesses, residents, and investment to the area. In addition, Detroit's low cost of living and diverse cultural scene make it an attractive place to live and work.

Top Reasons to Invest in Detroit Real Estate for the Long Term:

1. Affordable Prices: Detroit's real estate market offers some of the lowest prices in the country, making it an ideal destination for investors looking to buy low and sell high. With a median home value of $54,500, there is plenty of room for appreciation in the long term.
2. Strong Rental Market: Detroit's rental market is thriving, with a high demand for affordable housing. This makes it an ideal market for buy-and-hold investors who are looking for passive income streams.
3. Revitalization Efforts: Detroit has undergone a significant transformation in recent years, with major revitalization efforts taking place throughout the city. These efforts have attracted new residents, businesses, and investment to the area, driving up property values and creating new opportunities for investors.
4. Job Growth: Detroit's economy is on the upswing, with job growth in a number of key sectors, including technology, healthcare, and manufacturing. This is driving demand for housing and creating new opportunities for investors.
5. Pro-Investor Policies: Detroit has a number of pro-investor policies in place, including tax incentives and other programs designed to encourage investment in the city's real estate market. This makes it an attractive destination for investors who are looking for long-term returns.
6. Thriving Detroit Downtown: Over the past decade, the downtown area of Detroit has undergone a major transformation and has become a hub of economic and cultural activity. The downtown area is home to several major corporations, including General Motors, Quicken Loans, and Ally Financial, as well as numerous startups and small businesses. The thriving downtown area has also led to an increase in demand for housing in the city. As more and more people move to Detroit to take advantage of job opportunities and the city's vibrant culture, the demand for housing in the downtown area has increased. This has led to an increase in property values and rental rates in the area. Investing in real estate in the downtown area of Detroit can provide a great opportunity for long-term growth and rental income. Properties in the area are likely to appreciate in value over time as the area continues to grow and attract more businesses and residents. Additionally, rental rates in the area are likely to remain high due to the high demand for housing in the downtown area.
7. Detroit Government Initiatives: In recent years, the city's government has taken several initiatives to revitalize Detroit and attract more businesses and residents to the city. These initiatives have included tax incentives, redevelopment projects, and community outreach programs. One of the most significant government initiatives in Detroit is the Strategic Neighborhood Fund (SNF), which was launched in 2016. The SNF is a public-private partnership that provides funding for neighborhood revitalization projects, such as park improvements, streetscape enhancements, and commercial corridor redevelopment. The program has invested over $40 million in Detroit neighborhoods and has helped to attract new businesses and residents to the city. Another government initiative that has had a positive impact on Detroit's real estate market is the Neighborhood Enterprise Zone (NEZ) program. The NEZ program provides tax incentives to homeowners and businesses in designated areas of the city. The incentives include a freeze on property taxes for up to 15 years and a reduction in the taxable value of the property. This has made it more affordable for residents and business owners to own property in Detroit, which has led to increased demand for real estate in the city. The Detroit Land Bank Authority (DLBA) is also a government agency that has played a key role in revitalizing the city's real estate market. The DLBA is responsible for acquiring and disposing of tax-foreclosed properties in the city. The agency has made it easier for residents and investors to acquire property in Detroit, which has helped to stimulate the real estate market and drive up property values.

Detroit Rental Market Trends

Detroit's rental market has seen significant growth in recent years, with both short-term and long-term rental options becoming increasingly popular. This growth can be attributed to several factors, including the city's revitalization efforts, an increase in job opportunities, and a growing population. As a result, Detroit's rental market has become an attractive investment opportunity for real estate investors.

One of the main reasons for the growth of the rental market in Detroit is the city's revitalization efforts. In recent years, Detroit has undergone a significant transformation, with abandoned buildings and neighborhoods being restored and renovated. As a result, the city's population has grown, and job opportunities have increased. These changes have created a demand for housing, including rental properties, leading to an increase in rental rates.

Another reason for the growth of the rental market in Detroit is the city's growing population. According to the U.S. Census Bureau, the population of Detroit increased by over 4% between 2010 and 2020. This growth has led to an increased demand for housing, and rental properties have become a popular choice for many residents.

The short-term rental market has also seen significant growth in Detroit in recent years. With the rise of platforms like Airbnb, short-term rentals have become an increasingly popular choice for travelers. In Detroit, short-term rentals have become an attractive option for tourists and business travelers, with many properties located in desirable neighborhoods close to popular attractions.

Investing in the Detroit rental market offers several advantages for long-term investors. One advantage is the potential for long-term appreciation in property values. As the city continues to grow and improve, property values are expected to increase, leading to a significant return on investment for those who invest in rental properties now.

Another advantage of investing in the Detroit rental market is the relatively low cost of entry compared to other markets. With lower prices for rental properties, investors can purchase properties at a lower cost, increasing their potential return on investment.

Additionally, the high demand for rental properties in Detroit offers the potential for a consistent stream of rental income. As more people move to the city and job opportunities continue to grow, the demand for rental properties is likely to increase, providing a steady source of income for investors.

The Zumper Detroit Metro Area Report analyzed active listings last month across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Michigan one bedroom median rent was $1,007 last month. Birmingham was the most expensive city with one bedrooms priced at $1,710 whereas Romulus was the most affordable city with one bedrooms priced at $860.

The Fastest Growing Cities in Detroit Metro Area For Rents (Y/Y%)

• Warren had the fastest growing rent, up 13.1% since this time last year.
• Southfield saw rent climb 8%, making it second.
• Ypsilanti & Dearborn were tied for third with rents both increasing 5.3%.

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

• Dearborn & Birmingham had the largest monthly growth rates, both up 6.2%.
• Southfield was second with rent increasing 2.5%.
• Warren saw rent climb 2.2%, ranking as third.

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

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

Another good market to choose for investment is Savannah, GA. The Savannah area is evolving from a small town to a regional services hub with a diversified economy. It is never going to be a booming metropolis like Atlanta, but that won’t prevent it from being a great real estate investment. Many people are moving here for the ideal balance between the small-town feel and great amenities like a world-class hospital and international airport. The Savannah housing market is seeing significant appreciation due to strong demand and slower-growing inventory.

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

References:

• https://www.zillow.com/detroit-warren-dearborn-mi/home-values/
• https://www.zumper.com/blog/detroit-metro-report/
• https://www.redfin.com/state/Michigan/housing-market/
• https://www.realtor.com/realestateandhomes-search/Wayne-County_MI/overview
• https://www.neighborhoodscout.com/mi/detroit/real-estate
• https://gmaronline.com/resource-library
• https://www.mirealtors.com/housing-statistics
• https://detroitmi.gov/search?search=strategic+neighborhood+fund
• https://detroitmi.gov/search?search=neighborhood+enterprise+zone+%28nez%29+program