After a steep decline, the housing market in Virginia rebounded strongly in the spring of 2020. The hot housing market continued to be fueled in 2021 by strong demand, low mortgage rates, and the trend toward working from home. It is anticipated that sales activity will decline in 2022, primarily as a result of increased affordability concerns, prolonged low inventory, and a significant increase in mortgage rates.

In April, the statewide median sales price was $390.000. This is a $100,000 increase from April 2018. Compared to this time last year, the median sales price in Virginia has increased by just over 9 percent, or $32,500. The slowdown in sales activity and the recent increase in mortgage rates have had no impact on the consistently upward trend of home prices. However, the rate of price growth in Virginia could change in the coming months.

Monitoring economic and housing market trends can help us reconstruct our past. However, it is equally important, if not more so, to look ahead and predict the direction of the economy and housing market over the next few months and into the next year. Virginia's economy continues to improve in 2022 despite rising inflation and intensifying international conflict.

The unemployment rate continues to decline steadily, indicating a robust economy. In February 2022, total employment in Virginia surpassed four million jobs, the first time that milestone has been reached since March 2020. About 111,900 jobs have been added over the past 12 months.

The total number of jobs in the state is now just 2% below where it was prior to the pandemic. The unemployment rate is a key indicator of a strengthening economy. In February, the unemployment rate in Virginia was 2.9% (not seasonally adjusted), which is down from 3.4% in January and is at the lowest level since March 2020.

Let's take a look at the current state of the Virginia and Virginia Beach housing markets.

Virginia Housing Market Report & Trends (Statewide)

The Current Market Trends: According to the April 2022 Virginia Home Sales Report released by Virginia REALTORS^®, the statewide median home sales price was $390,000 in April. This is $100,000 higher than April of 2018, just four years ago. Compared to last year at this time, Virginia’s median sales price is up just over 9%, a gain of $32,500. Homes sold for 3.4% higher than the list price, on average. In all price segments, the average sold-to-list price ratio was at least 100%.

In April 2022, there were 11,991 home sales in Virginia, a decrease of 11.6% from the previous year. For five consecutive months, sales have decreased year-over-year. This slowdown is a result of buyers' reluctance due to rising home prices, inflation, and mortgage rates. In the coming year, as a result of rising interest rates, housing demand in Virginia will decrease, thereby slowing price growth. However, higher mortgage rates and home prices will continue to be an obstacle for purchasers.”

In 2022, Virginia REALTORS^® is forecasting that sales activity will be down by just about a tenth of a percent as compared to last year, due primarily to rising affordability challenges, continued low inventory, and a huge uptick in mortgage rates. Virginia home prices will continue to rise in 2022, though the rate of price growth will slow as demand softens and inventory expands a bit.

The group is forecasting that prices will be up by about 4.1% in 2022, making it a more typical year for price appreciation. New construction is expected to stabilize in 2022 with just a modest increase in the number of new homes built. According to Virginia REALTORS, real estate in Arlington and other parts of Northern Virginia has been in high demand for years, fueled by strong job growth and high household incomes in the metropolitan Washington, D.C. area.

Amazon added fuel to this fire a few years ago, but it is no longer the only factor. Amazon has brought new workers to the region. The company announced that it would ultimately bring 25,000 to the Amazon HQ2 headquarters. Amazon has hired more than 3,000 HQ2 employees and was actively hiring another 2,500 workers. These new Amazon jobs tend to be higher-paying jobs—the average annual salary is $150,000. In April 2022, the median sales price in Arlington County was $645,000. The average single-family detached home sold for over $1.2 million.

In April, the median sales price in 22202, which includes National Landing, was $662,500. The majority of the surrounding region has experienced double-digit price increases. Over the past year, the median price of a home in Arlington and Alexandria has decreased due to a greater proportion of condominium sales than single-family homes. Home prices have actually risen much faster in neighboring Fairfax and Loudoun counties, where the median prices were up 10.1% and 18.0% year-over-year, respectively, in April.

“Northern Virginia” Housing Market Trends 

The Northern Virginia Association of Realtors® reports on home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax, and Falls Church, and the towns of Vienna, Herndon, and Clifton. Below are April 2022 regional home sales compared to April 2021 for Northern Virginia with data derived from Bright MLS.

• Northern Virginia is a hot seller's market in 2022.
• Sold volume in April was $1,594,454,859, down 8.38% compared to April 2021, but still well above April 2019 (pre-pandemic) when it was $1,338,403,421.
• While still very tight, inventory has steadily increased since January 2022 when there was .39 month’s supply to April’s .76 month’s supply, indicating a slight shift in advantage to buyers.
• The average price in April was $776,162, up 7.72% compared to April 2021, and substantially above the April 2019 average price of $621,069.
• Notably, the average price of detached homes is now nearly $1.1M.
• The median price in April is $685,000, up 7.03% compared to April 2021, and substantially above the April 2019 median price of $560,000
• Average days on market in April were 11 days, down from 14 days in April 2021, revealing that homes are selling at a more rapid pace.
• The number of active listings in April was 1,638, down 22.15% compared to April 2021, and down considerably from April 2019 when the number of active listings was 2,508.
• Pending sales in April were 2,503, down 18.71% compared to April 2021.
• Cash sales continue to be popular, further propelled by this spring’s rising mortgage rates. Year to date, the region had 974 cash sales, up from 847 for the same period in 2021.

“Virginia Beach” Housing Market Trends 2022

Virginia Beach is a city in southeastern Virginia. It sits where the Atlantic Ocean and the Chesapeake Bay meet. The city is best known for the three-mile boardwalk on the Atlantic side. About 20 million visitors come to Virginia Beach each year. The city has just under half a million permanent residents.

According to a report published by the Hampton Roads REALTORS® Association, the Virginia Beach housing market continued to cool in the first quarter of 2022. Virginia Beach home sales were down for the third consecutive quarter. There were 1,750 sales in the city in the first quarter, down 14% from a year ago, which is 278 fewer sales. However, sales are 8% higher in the city than they were two years ago (source: Virginia REALTORS®).

The median sales price in the City of Virginia Beach during the first quarter was $326,050, which is an increase of nearly $30,000 from a year ago, or a 10% gain. The city’s median home sales price is now more than $53,000 higher than it was a year ago. Despite higher prices, a sharp decline in sales resulted in a lower sold volume in Virginia Beach compared to the previous year.

The first quarter sales volume in the city was approximately $692.8 million, which is about $27.7 million less than the first quarter of 2021, a decrease of 4 percent. In Virginia Beach, homes sold in an average of 23 days during the first quarter. On average, homes sold a week faster than they did at this time last year and more than three weeks faster than they did in the first quarter of 2020.

The housing market supply in Virginia Beach continued to decline. At the end of the first quarter, there were 723 active listings in the city, a 13 percent decrease from the same time last year, or 112 fewer active listings.

Virginia Beach Housing Market Forecast 

If you are a home buyer or real estate investor, you may find mixed opinions about investing in Virginia Beach real estate. It may not have a good track record or hype for real estate investment but Virginia Beach has a good variety of housing available for investors, including single-family homes, condominiums, and rental apartments. Tourism results in some key beachfront locations being used as vacation rentals for which the returns are very good.

Virginia Beach's real estate appreciation rate notably has been below the national average for the last ten years. The average annual home appreciation rate in Virginia Beach during the period has been just 3.87%, which is lower than 70% of US communities, according to NeighborhoodScout's data.

Over the last year, Virginia Beach appreciation rates have lagged behind the national average. In the past year, the rate of appreciation in Virginia Beach was 16.80 percent, which is lower than the rate of appreciation in the majority of American communities. The most recent quarter's house appreciation rates in Virginia Beach were 6.50 percent, which equates to an annual appreciation rate of 28.65 percent. If this forecast is correct, home prices will be higher in the 1st Quarter of 2023 than they were in the 1st Quarter of 2022.

The typical home value in Virginia Beach is $367,667 (Zillow Home Value Index). Virginia Beach home values have gone up 14.1% over the past year and 49.45% over the last ten years. Similarly, the typical value of homes in Virginia Beach-Norfolk-Newport News Metro is $317,835. This value is also seasonally adjusted and only includes the middle price tier of homes. Virginia Beach-Norfolk-Newport News Metro home values have gone up 14.4% over the past year and 48.5% over the last ten years.

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

1. North Virginia Beach
2. Fort Story
3. Shadow Lawn / Salt Marsh Point
4. Kempsville
5. Point O Woods
6. Ashville Park
7. Magic Hollow / Gatewood Park
8. Linkhorn Park / Bay Colony
9. Ocean Lakes
10. Arrowhead

Virginia Beach Real Estate Investment Overview

Investing in real estate is touted as a great way to become wealthy. Is Virginia Beach rental property good for investment? If you are looking to buy Virginia Beach investment properties, then you must read this. These things make Virginia Beach real estate market stand out when it comes to choosing a place to invest. We have already discussed the Virginia Beach housing market forecast for answers on why to put resources into this sizzling market in 2022. The home prices in the Virginia Beach housing market will be on an upswing all through 2022.

​​​​Located in the southeastern corner of Virginia, where the state meets the sea, the Virginia Beach Metropolitan Statistical Area (MSA), also known as Hampton Roads and Coastal Virginia, is the 36th largest in the United States. The MSA encompasses 15 cities and counties with a population of more than 1.7 million and a workforce of more than 850,000. Virginia Beach is the most populous city in Virginia and the 39th largest city in the United States, with approximately 450,000 residents.

The City encompasses 307 miles: Land 248 miles, 59 square miles of water, and 38 miles of beaches. Virginia Beach has a unique environment. Within minutes, residents and visitors have access to the popular oceanfront resort area, bountiful wildlife preserves and parks, a vibrant financial district, urban amenities, pastoral rural areas, distinctive cultural centers and museums, a variety of military facilities, and neighborhoods as diverse as the people who call the city home.

Economic and Tourism Initiatives

According to the City of Virginia Beach's governing body, a robust financing plan through the TIP Fund will enhance Virginia Beach's position as a tourist destination that includes capital maintenance repairs along Atlantic Avenue, Sports Center improvements, increased parking capacity, site acquisition in the Resort Area, and investment in sports infrastructure within the City.

The extension of the Tourism Investment Program (TIP) Fund dedications will ensure it has adequate capacity to support the tourism and economic development initiatives within the Resort Area.

$300,000 for enhanced entertainment, peak season ambassadors, and block-by-block security for the Town Center grounds and plaza. To support and encourage the expansion of special events within the city, the Special Event Fees will be eliminated. The City will continue to provide required safety standards and support services at no charge.

The Large Military & Student Market

Every military base dumps a large number of renters into the local real estate market. The Virginia Beach housing market demand for rentals is high because there are three military bases in the area: Langley Air Force Base in Hampton, Oceana Naval Base in Virginia Beach, and the Joint Expeditionary Base Little Creek-Fort Story, commonly known as Little Creek. Little Creek alone employs around 15,000 people.

Students often come from all over the country to attend school. Virginia Beach contains a truly eclectic mix of higher learning institutions. Regent University is a private Christian college. Atlantic University is a New Age training center. Virginia Tech and the University of Virginia operate satellite campuses in Virginia Beach. Norfolk State University and Old Dominion University are located in nearby Norfolk.

Students in the area often attend the Tidewater Community College. Virginia Wesleyan College is located mostly within Virginia Beach, though its address is in Norfolk. The same is true for the East Coast Polytechnic Institute. All of these schools dump tens of thousands of students into the Virginia Beach real estate market and drive demand for Virginia Beach rental homes.

The Strong, Diverse Job Market

Virginia Beach is part of the Hampton Roads metropolitan area. That area includes cities like Chesapeake, Hampton, Norfolk, Portsmouth, Newport News, and Suffolk. The hybrid beach community and suburban nature of Virginia Beach make it a popular place to live while working in other towns. (Around 100,000 people commute from Virginia Beach to Norfolk and Chesapeake.)

There are also many who work in Virginia Beach at corporations like Christian Broadcast Networking, Regent University Amerigroup, STIHL, Busch, IMS Gear, and the three military bases in the area. This explains why Virginia Beach squeaked by in the top 50 of Forbes’ list of best places for careers and business. The desire to live both close to work and natural attractions like the beaches and wilderness areas drives demand for Virginia Beach real estate market. Being able to drop by a farmer’s market to select from produce grown only a few miles away is a plus.

The Relatively Affordable Beachfront Property

The town is notable for its hundreds of hotels and motels. Virginia Beach rental homes a short distance to the beach command a premium. For example, the median home price for Virginia Beach is less than $350,000 (Virginia REALTORS^®). You can find homes on the water for less than half a million if they’re cozy properties instead of mansions.

The Virginia Beach housing market is nearly certain to see long-term appreciation because there are limits to expansion. You can’t build on water. The city has run out of clear land north of the Green Line, their division between rural and urban areas. The city cannot expand onto open land around Naval Air Station Oceana. In fact, the naval base asked for 3500 homes in its crash zone to be bulldozed to ensure that no one was killed in a plane taking off as part of their pilot training program crashed there. The only options are denser construction and infill development.

The Landlord Friendly State of Virginia

Virginia is incredibly landlord friendly. Virginia is one of 14 states that allow you to serve an unconditional quit notice to renters who violate the lease terms. That notice is generally used for serious breaches like criminal activity on the premises. There are no limits on late fees as long as they are written into the rental agreement. You don’t have to pay interest on deposits. There are no laws on re-keying.

The state doesn’t require you to have a permit to be a landlord, though cities may mandate this. The state allows landlords to forbid specific guests and visitors if their behavior violates the lease, too. If tenants in Virginia Beach rental homes make too much noise, tolerate drugs or give alcohol to minors, you can evict the tenant for the behavior of guests that they didn’t keep in compliance with the law.

A side benefit of the Virginia Beach real estate market is how it has come to accommodate the short-term rental market. You have to get a conditional-use permit if regularly renting the property out on a site like Airbnb, and hotel taxes are owed. You can only rent out single-family houses and condos via short-term rental houses, not garage or carriage house apartments.

Rentals can only be rented out to two different people in the same week, something intended to minimize the disruption of guests coming and going. You must provide at least one parking spot for every bedroom occupied by tenants, and no more than three people per bedroom are allowed.

The Better Tax Situation

Another reason to invest in the Virginia Beach real estate market is the better tax climate in the area. Homeowners in the state of Virginia pay property tax rates that are well below the national average of 1.07%. In fact, the state's average effective property tax rate is just 0.80%, which falls in the bottom half of the nation. Based on an Assessed Home Value of $250,000, the annual property tax in Virginia Beach City County would be $2,225.

Of the seven cities – Chesapeake, Norfolk, Portsmouth, Suffolk, Hampton, and Newport News the other six – Virginia Beach has the lowest real estate and personal property tax rates – the two largest revenue generators for local governments.

​The City of Virginia Beach has been able to maintain a strong budget position despite the challenges of the pandemic. City leadership has been thoroughly engaged through Council workshops, departmental briefings, and public hearings over the last several weeks to help inform the FY 2022-23 budget. The adopted budget implements major investments in the City workforce, public safety, and capital improvement projects, among other focus areas.

There will be no change in the real estate tax rate. The City will absorb the full cost of the $567.5 million Flood Protection Program bond referendum approved by over 72% of voters in November 2021, with no change in the $0.99 tax rate. Of the total $0.99 tax rate, 4.1¢ will remain dedicated to the Flood Protection Program within a stand-alone fund acting as a “lock box,” with the remaining 94.9¢ supporting other base operations and services. The real estate surcharge for the Sandbridge Special Service District has been reduced from 4¢ to 2¢ per $100 of assessed value.

Conclusion

The Virginia Beach real estate market presents an ideal mix of high demand, constrained supply, and a large number of renters who won’t go buy a house if interest rates drop. The diverse local economy allows you to cater to tourists knowing you can rent the property out to locals, as well. Buying an investment property is different from buying an owner-occupied home. Investment properties are designed to make money as rentals, which means you must look at them solely as an income-producing entity just like any other business.

Whether you are a beginner or a seasoned investor, you probably realize the most important factor that will determine your success as a real estate investor is your ability to find great real estate investments. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities.

Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.

Apart from the Virginia Beach real estate market, you can also invest in another hot market in Atlanta, GA. Located in the state of Georgia, the city of Atlanta is a hotspot for any type of real estate investing. Atlanta has shown promising population growth and employment, which are two signs of a healthy real estate market. You can purchase investment properties in Atlanta for as low as $127,000. Comparing that to the national average, which is $152,000, that’s a pretty significant deal!

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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References

Market Data and Trends
https://virginiarealtors.org/
https://hrra.com/media/
https://www.zillow.com/VirginiaBeach-va/home-values
https://www.neighborhoodscout.com/va/virginia-beach/real-estate
https://www.realtor.com/realestateandhomes-search/Virginia-Beach_VA/overview
https://www.nvar.com/realtors/news/market-statistics

About Virginia Beach
https://www.vbgov.com/news/Pages/default.aspx
https://en.wikipedia.org/wiki/Virginia_Beach,_Virginia

Military & Student market
https://militarybases.com/virginia/oceana/
https://en.wikipedia.org/wiki/Joint_Expeditionary_Base%E2%80%93Little_Creek
https://en.wikipedia.org/wiki/Naval_Air_Station_Oceana

Real Estate Taxes & Economic and Tourism Initiatives
https://www.bankrate.com/finance/taxes/state-taxes-virginia.aspx
https://www.vbgov.com/news/pages/selected.aspx?release=5803&title=city+council+adopts+revised+fy2022-23+budget

The St. Louis real estate market is hot. Homes are selling fast because inventory is low, creating a banner selling season for homeowners looking to move. While St. Louis real estate market remains more affordable than in many other metro areas, low inventory and strong demand are putting upward pressure on prices. However, the number of new listings in the St Louis market is outpacing the number of closed sales, a reversal of the trend we saw until recently.

As the report below shows, there were 1607 new residential listings in November and 1715 closed sales. There were 2216 active listings, which amounts to 1.2-months of supply based on the pace of home sales. Even with the slight increase (+1.1%) in new listings, the supply remains low far low from the demand, and the trend reports are only for one month, so we need to give it more time and monitor the trend over the next few months before concluding that there is possibly a significant trend indicating a market shift.

St. Louis Housing Market Trends 2021 (Describes Nov)

The St. Louis housing market isn’t limited to the roughly 300,000 people who live in St. Louis, making this the second-largest city in Missouri, after Kansas City. Instead, the Saint Louis metro housing market includes 2.8 million people. It is a bi-state metropolitan area that completely surrounds and includes the independent city of St. Louis, the principal city. It includes parts of both Missouri and Illinois.

Single-family detached homes are the single most common housing type in St. Louis. One and two-bedroom single-family detached homes are the most common housing units in St. Louis. Other types of housing that are prevalent in St. Louis include large apartment complexes, duplexes, homes converted to apartments, and a few row houses. St. Louis has a mixture of owner-occupied and renter-occupied housing.

According to Redfin, the St. Louis housing market is somewhat competitive. The average sale price of a home in St. Louis was $200K last month, up 5.0% since last year. The average sale price per square foot in St. Louis is $129, down 8.5% since last year. In the past month, 883 homes have been sold in St. Louis. In addition to houses in St. Louis, there were also 221 condos, 1 townhouse, and 146 multi-family units for sale in St. Louis last month. 

• Many homes get multiple offers, some with waived contingencies.
• Homes in St. Louis receive 3 offers on average and sell in around 20 days.
• Hot homes can sell for about 4% above the list price and go pending in around 5 days.

St. Louis housing market is a seller’s market, which means there were roughly more buyers than there were active homes for sale.

This report provided by MARIS covers residential real estate activity in the St. Louis REALTORS® service area. Percent changes for November are calculated using rounded figures.

St. Louis Housing Demand & Prices

• Median Sales Price increased 6.0 percent to $250,000 for Residential homes.
• Median Sales Price remained flat at $175,000 for Townhouse/Condo homes
• Average Sales Price increased 12 percent to $320,682 for Residential homes.
• Average Sales Price increased 10.6 percent to $239,347 for Townhouse/Condo homes.
• Days on Market decreased 23.5 percent for Residential homes and 8.3 percent for Townhouse/Condo homes.
• Housing Affordability Index decreased 4.7% for Residential homes but increased 0.4 percent for Townhouse/Condo homes.

Housing Supply

• New Listings increased 1.1 percent for Residential homes but decreased 5.1 percent for Townhouse/Condo homes.
• Inventory of homes for sale decreased 25.8 percent for Residential homes and 33.1 percent for Townhouse/Condo homes.
• Months Supply of Inventory decreased 29.4 percent for Residential homes to 1.2.
• Months Supply of Inventory decreased 40.9  percent for Townhouse/Condo homes to 1.3.
• The current Months Supply of Inventory indicates a seller's market.
• It refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.

Housing Sales

• Closed Sales decreased 7.3 percent for Residential homes but increased 2.3 percent for Townhouse/Condo homes.
• Pending Sales increased 3.1 percent for Residential homes and 11 percent for Townhouse/Condo homes.

St. Louis Rental Market Trends

The average rent for a 1-bedroom apartment in St. Louis, MO is currently $950. This is a 5% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in St. Louis decreased by -1% to $820. The average rent for a 1-bedroom apartment increased by 4% to $950, and the average rent for a 2-bedroom apartment remained flat.

• The average rent for a 2-bedroom apartment in St. Louis, MO is currently $1,250, a 2% decrease compared to the previous year.
• The average rent for a 3-bedroom apartment in St. Louis, MO is currently $1,400, a 7% increase compared to the previous year.
• The average rent for a 4-bedroom apartment in St. Louis, MO is currently $1,750, a 35% increase compared to the previous year.

St. Louis Real Estate Market Forecast 2022

Let us look at the real estate data for St. Louis from various sources. Is the St. Louis housing market shaping up to continue the trend of the last few years as one of the hottest markets in the nation? Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years. Since Dec 2011, the typical home value in Saint Louis County has appreciated by around 62%. The typical value of homes in Saint Louis is currently $238,058

It indicates that 50 percent of all housing stock in the area is worth more than $238,058 and 50 percent is worth less (adjusting for seasonal fluctuations). ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. The supply is exceeding the demand, giving purchasers an advantage over sellers in price negotiations. In other words, there are more homes for sale than there are buyers in the marketplace. St. Louis is a seller's real estate market – which means there are a lot of qualified buyers in the marketplace and not enough homes for sale in the market.

• St. Louis Metro home values have gone up 14.2% over the past year and Zillow predicts they will rise 12.6% in the next year.
• St. Louis County home values have gone up 13.5% over the past year and will continue to rise over the next twelve months.
• St. Louis City home values have gone up 12.5% (current = $161,259) over the past year and will continue to rise over the next twelve months.

Here is St. Louis, MO real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 12% until Nov 2022.

St. Louis Real Estate Investment Overview 2022

Is St. Louis a Good Place Real Estate Investment? Many real estate investors have asked themselves if buying a property in St. Louis is a good investment? If you want to find out whether St. Louis real estate is a good investment or not, you need to drill deeper into local trends. The St. Louis real estate trends will tell what the market holds for the years 2021 & 2022. We have already discussed the St. Louis housing market forecast.

St. Louis is most famous for the Gateway Arch built in the 1960s. Alternately looked down on as a Rust Belt city and part of flyover country, it doesn’t generate much attention except when its crime rate or other problems hit the news. However, the St. Louis real estate market holds significant potential. Purchasing an investment property in St. Louis real estate is a little different from shopping for your car or primary residence.

While you still want to get the most for your money, if you are looking to make a profit, you don’t want to buy the most expensive property on the St. Louis 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 St. Louis 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 St. Louis real estate market which can help investors who are keen to buy an investment property in this city. We’re not going to list major tourist attractions and use that to say you should buy property here, whether to live in or rent out. Instead, here are some of the top reasons to invest in the St. Louis real estate market.

Its Overall Affordability for Investors

The St. Louis real estate market has one other thing going for it: affordability. Taking into consideration both the average household income and the cost of homes in the area, St. Louis continues to be one of the most affordable markets in the country. The median home price in St. Louis City is roughly $160,000. A general trend is a price of $105 to $120 per square foot. You can find many single-family homes for sale for less than $100,000; this market is notable for the sheer number of two-bedroom homes that attract empty-nesters, single parents, and small families. If you take St. Louis county into account, the median home value is around $260,000.

Affordable and upscale are relative terms. Some of the most desirable real estate markets in St. Louis are surprisingly affordable to outside investors. The median price of homes in the “expensive” 63103 zip code is barely under half a million dollars. The tony 63105 zip code hovers around the half-million mark, too. You have to move far out to suburban zip codes like 63124 to find median listings past the $700,000 mark. Note that this is cheaper than a cheap condo in hot California or New York markets. You could buy two luxury homes in the St. Louis housing market for less than one in hot coastal markets.

The Market’s Price Stability

The St. Louis real estate market has seen strong appreciation over the past three years, finally bringing them out of the low prices they’ve suffered through the Great Recession that only ended two years ago. In the last twelve months, St. Louis's appreciation rate has been 8.11%. In the latest quarter, NeighborhoodScout's data shows that house appreciation rates in St. Louis were at 2.19%, which equates to an annual appreciation rate of 9.05%.

Relative to Missouri, their data show that St. Louis's latest annual appreciation rate is lower than 60% of the other cities and towns in Missouri. Yet the market isn’t expensive. This suggests that those who buy in this relatively cheap market could enjoy reasonable price increases over time without worrying if they’re buying before a bubble bursts or if their investment will go down in value.

The True Bargains Are Abundant

A large number of vacant homes in the St. Louis real estate market, estimated at 20%, presents an excellent opportunity for those who want to buy, rehab, and rent out properties. When you factor in the suburbs, the vacancy rate is still around 6%. St. Louis also has a larger than the average number of distressed and underwater homes. In the U.S., roughly 1.5% of mortgages are delinquent. In St. Louis, the rate is 2.2%. Around 10% of homes have negative equity, while that rate exceeds 15% in St. Louis. You’ll be able to find vacant homes, distressed sellers, and foreclosures at bargain-basement prices here that you can renovate and rent out or sell throughout the St. Louis real estate market.

The Massive Renter’s Market

Around a third of the U.S. population rents. In the downtown St. Louis real estate market, nearly 60% of residents rent, and the rate is around a fifth when you include those in the suburbs. This is a huge rental market that you can take advantage of. Unlike college towns, your ability to find renters doesn’t depend on the popularity of the local college, nor will the value of the property depend on proximity to a particular school. College towns have a large proportion of renters, but you’re fighting with other investors to find properties to rent out to students.

St. Louis’ student market is fairly scattered due to the sheer number of universities. Yet it is large enough to present an opportunity for those who want to rent to students. Traditional universities in and around St. Louis include Blackburn College, Greenville University, Missouri Baptist University, St. Louis University, the University of Missouri – St. Louis campus, Washington University in St. Louis, and the Southern Illinois University Edwardsville campus. On top of this are various technical schools, seminaries, Bible colleges, and junior colleges.

Missouri is more landlord-friendly than other states in the area, notably Illinois. For example, it is much easier to evict someone who doesn’t pay their rent than surrounding states. In Missouri, you can file to evict if they’re just a few days late with the rent. There are protections for tenants, especially regarding security deposits. All of this is aside from the fact that the St. Louis real estate market has far more multifamily housing stock than other Midwestern markets.

Depending on the source, median rents range from $900-1000 a month in St. Louis and $1100 a month in the surrounding suburbs. Imagine buying a rental property for $50,000 and renting it out for $500-$1000 a month. You can rent out a studio apartment for $500 a month and a two-bedroom for $800. The rare four-bedroom apartment or house commands more than $1200 a month. It is hard to beat that ROI without risking your money buying liens and hoping you can secure a property. Because of the city’s age, you can find many older apartment buildings and apartment complexes at a reasonable price and rent them out at a decent rate.

The Known Redevelopment Opportunities in St. Louis

One of the benefits of master-planned redevelopment is that you know where real estate prices are going to go up due to renewed interest. The Garment District is slated for redevelopment, replacing the empty industrial buildings with homes and workspaces for creative types and new technology companies. The “New Northside” project wants to redevelop the entire north side of St. Louis. That project includes 1500 acres that border downtown St. Louis. Chippewa Park in south St. Louis is also targeted for redevelopment, too.

That renovation includes apartment homes and industrial space. St. Louis is old enough to have aging inner-ring suburbs. You can find redevelopment opportunities in suburbs like University City, home to Washington University in St. Louis. About 800 acres are slated for redevelopment in University City. Wellston is receiving funds from HUD specifically for redevelopment.

Summary

If you are looking to invest in St. Louis real estate, you should know the best places to invest in. The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. Demand would raise the price of your St. Louis investment real estate and you should be able to flip it for a lump sum profit.

A cheaper neighborhood in St. Louis might not be the best place to live in. A cheaper neighborhood should be determined by this factor – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. When looking to invest in St. Louis real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing a St. Louis investment property should be low.

The neighborhoods in St. Louis 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. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. St. Louis is a moderately walkable city.

Some of the best neighborhoods in Saint Louis, Missouri are Oakville, University City, Webster Groves, Clayton, The Hill, Central West End, Downtown St. Louis, Fox Park Historic District, Shaw Historic District, Shrewsbury, Richmond Heights, Lafayette Square, Maplewood, Dogtown, Benton Park Historic and Tower Grove East.

Central West End is an upscale neighborhood in St. Louis. It has everything from sidewalk cafes, smart Italian and Asian fusion restaurants, chic boutiques, and antique stores. Located just 10 minutes of drive from downtown, the Central West End is nestled between Forest Park and the Saint Louis University campus. Gravois Park is an affordable neighborhood in St. Louis.

Roughly bounded by Jefferson Avenue, Chippewa Street, Grand Boulevard, and Cherokee Street, the living in Gravois Park offers residents an urban and suburban mix feel. In Gravois Park, there are a lot of bars, restaurants, coffee shops, and parks. Gravois Park neighborhood is a diverse mix of homeowners, renters. Most residents in Gravois Park rent their homes, therefore, investing in a rental property here could prove to be a lucrative income model.

Here are a few good neighborhoods in the Saint Louis real estate market which have experienced the highest appreciation rates (List by Neigborhoodscout.com).

1. St Louis College of Pharmacy / S Vandeventer Ave
2. S Vandeventer Ave / Mcree Ave
3. S 39th St / Lafayette Ave
4. City Center
5. Dr Martin Luther King Dr / N Garrison Ave
6. Harris-Stowe State U / Market St
7. Cherokee St / Missouri Ave
8. Tower Grove
9. Arsenal St / S Compton Ave
10. S Jefferson Ave / Arsenal St

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.

Similarly, don’t let the country-western touristy image dissuade you from investing in Nashville, TN. There are several points in favor of the Nashville real estate market if you are looking for a solid opportunity. One of the best features of the Nashville real estate market is the median property price in the city, which is considered more affordable than most of the other top markets for investing in real estate in the U.S.

Although the Nashville real estate market is expected to move a little more slowly in 2022, which would make things better for buyers, the inventory will remain limited, which means that Nashville will remain among the fastest-moving housing markets in the U.S. Also, as the mortgage rates remain at record lows, it makes buying a property more affordable now than it was in the previous years.

Another housing market in Texas to go for diversifying your investments is the Austin housing market. The Austin housing market may be one of the more expensive ones in the state of Texas, but it stands out for its large rental market and high rental rates. It is an excellent place to invest in real estate in the Lone Star State. It may be the second most expensive housing market in the state with a typical home value of around $595K, but it is still far cheaper than California or New York. Buy up condos or townhomes, and you’ll be able to see a sizable return on the investment.

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

References

Market Prices, Trends & Forecasts
https://www.zillow.com/saint-louis-mo/home-values/
https://www.stlrealtors.com/pages/housingreport/
https://www.redfin.com/city/16661/MO/St-Louis/housing-market
https://www.zumper.com/rent-research/st-louis-mo
https://www.neighborhoodscout.com/mo/st-louis/real-estate#description
https://www.realtor.com/realestateandhomes-search/Saint-Louis_MO/overview

Neighborhoods
https://explorestlouis.com/things-to-do/neighborhoods/central-west-end/
https://www.homesnacks.net/cheapest-neighborhoods-in-st-louis-mo-1220885/
https://www.niche.com/places-to-live/n/gravois-park-st-louis-mo/

Redevelopment
http://www.northstl.com
http://news.stlpublicradio.org/post/university-city-leaders-try-reassure-residents-business-owners-about-redevelopment-plan#stream/0
https://nextstl.com/2016/12/wellston-first-aims-reinvent-struggling-historic-inner-ring-suburb https://fox2now.com/2018/05/22/downtown-st-louis-announces-next-phase-in-redevelopment-of-garment-distrrict

Landlord friendly
https://www.rentapplication.com/missouri-landlord-tenant-laws
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters

Santa Fe Real Estate Market Trends

Real estate can be a worthy investment opportunity. With research, a plan, and the right price, just about anyone can be a real estate investor. If you are looking at investing in the Santa Fe real estate market as a potential investment opportunity, you must read till the end. Santa Fe is one of the oldest cities in the country, having been founded in 1610. Santa Fe is not the biggest city in New Mexico, but it is the state capital.

Santa Fe has a population of 86,099 (2020). Santa Fe is currently growing at a rate of 0.55% annually and its population has increased by 6.28% since the most recent census, which recorded a population of 81,012 in 2010. Santa Fe County, New Mexico's estimated population is 152,149 with a growth rate of 0.39% in the past year according to the most recent United States census data.

The Santa Fe housing market, however, is larger than this. With a population of 87,505 as of the 2020 census, it is the fourth-largest city in New Mexico. It is also the county seat of Santa Fe County. Its metropolitan area is part of the Albuquerque–Santa Fe–Las Vegas combined statistical area, which had a population of 1,162,523 in 2020. That makes it part of a metro area with more than a million residents. This also means that the larger Santa Fe housing market contains half the state’s population.

Let’s look at ten reasons to consider making a Santa Fe real estate investment. Let’s take a look at the latest Santa Fe housing market trends & forecasts for the next twelve months. According to Redfin, in May 2022, Santa Fe home prices were up 10.6% compared to last year, selling for a median price of $547K. On average, properties for sale in Santa Fe sell after 32 days on the market compared to 41 days last year. There were 188 properties sold in May this year, down from 202 last year.

The Santa Fe housing market is somewhat competitive since only a few properties receive multiple bids, yet it normally takes weeks to sell a property. The average homes sell for around the list price and go pending in around 30 days. Hot listings can sell for about 3% above the list price and go pending in around 17 days.

On Realtor.com, the median listing home price in Santa Fe, NM was $599K in April 2022, trending up 11.4% year-over-year. The median listing home price per square foot was $344.

• Santa Fe real estate market trends show that it is a seller's real estate market, which means that more people are looking to buy than there are homes available.
• A balanced market typically has a total sales to total listings ratio between 0.12 and 0.2.
• Markets with a ratio above 0.2 tend to favor sellers, while markets with a ratio below 0.12 tend to favor buyers.
• The trend for median days on market in Santa Fe, NM has gone down since last month, and slightly down since last year.
• There are about 39 neighborhoods in Santa Fe where Realtor.com has active listings.
• Old Santa Fe Trail has a median listing home price of $2.8M, making it the most expensive neighborhood in Santa Fe.
• San Mateo is the most affordable neighborhood in Santa Fe, with a median listing home price of $350,000.

Santa Fe Real Estate Market Forecast 2022-2023

According to statistics compiled by NeighborhoodScout, property appreciation rates in Santa Fe have been above average for the past decade. The total rate of appreciation over the past decade has been 74.42 percent, which places it in the top 40 percent nationally. This amounts to an average yearly gain rate of 5.72 percent for Santa Fe homes.

Looking at only the most recent twelve months, Santa Fe appreciation rates continue to be among the highest in the United States, at 21.23 percent, which is more than 74.69 percent of the nation's cities and towns. In Santa Fe, short-term real estate investors have achieved success during the past twelve months. The most recent quarter's Santa Fe appreciation rates were 8.37 percent, which amounts to an annual appreciation rate of 37.93 percent.

As of May 2022, the typical home value in Santa Fe is $561,676, up 21.6% over the past year (Zillow Home Value Index). Between 2019 to 2020, Santa Fe home values went up by 5.65%. Last year has been sizzling hot for sellers as over the past year alone the Santa Fe home values have gone up 19.5% and are expected to continue to grow in 2022. The supply is very tight and with all the other factors considered, at this time, it is unlikely that the Santa Fe housing market will see a price decline in 2022.

Santa Fe County is located in the U.S. state of New Mexico. As of the 2010 census, the population was 144,170, making it New Mexico's third-most populous county, after Bernalillo County and Doña Ana County. Its county seat is Santa Fe, the state capital. Also, the Santa Fe Metro Area is centered on the city of Santa Fe, which only encompasses the county of Santa Fe.

Santa Fe’s real estate dynamic stretches across the Mountain States and elsewhere in the country, where similar factors are in play: a shortage of homes on the market, new home construction failing to meet demand, steeply increasing home construction costs, and a shortage of construction workers.

The Santa Fe Housing Market Area (HMA) is coterminous with Santa Fe County and the Santa Fe, NM Metropolitan Statistical Area in north-central New Mexico, approximately 60 miles northeast of Albuquerque between the Sangre de Cristo mountain range and the Valles Caldera National Preserve.

Single-family detached homes are the single most common housing type in Santa Fe, accounting for 58.68% of the city's housing units. Other types of housing that are prevalent in Santa Fe include large apartment complexes or high-rise apartments (14.84%), row houses and other attached homes ( 9.08%), and a few duplexes, homes converted to apartments or other small apartment buildings (8.90%).

The most prevalent building size and types in Santa Fe are three and four-bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 62.11% owning and 37.89% renting.

• The typical home value of homes in Santa Fe Metro is $532,183.
• Santa Fe metro home values have gone up 21.3% over the past year and Zillow predicts they will rise 9.6% over the next twelve months (May 2023).
• Santa Fe County's home values have gone up 21.3% over the past year and will continue to rise in the next year.

Here is the Santa Fe real estate price appreciation graph by Zillow for the past decade.

Some of the best neighborhoods in Santa Fe, New Mexico are Arroyo Chamisa-Sol y Lomas, Las Campanas Estates, and Sante Fe Historic District. Here are the 10 best neighborhoods in Santa Fe to invest in real estate for the long-term because they have the highest appreciation rates (List by Neigborhoodscout.com).

1. Veterans Memorial Hwy / US Hwy 85
2. Don Diego / Don Gaspar
3. San Acacio
4. Torreon
5. Greater Callecita
6. Las Soleras
7. Southwest Bellamah
8. Vista Primera
9. Ferrocaril / Baca St. sierra St.
10. Tres Arroyos

Santa Fe Real Estate Investment Overview

Is it worth buying a house in Santa Fe, NM? Investing in real estate is touted as a great way to become wealthy.  Many real estate investors have asked themselves if buying a property in Santa Fe is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Santa Fe housing market forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Santa Fe we have collected ten evidence-based positive things for those who are keen to invest in the Santa Fe real estate.

Investing in Santa Fe real estate will fetch you good returns in the long term as the home prices in Santa Fe have been trending up year over year. Let’s take a look at the number of positive things going on in the Santa Fe real estate market which can help investors who are keen to buy an investment property in this city.

It Has a Strong, Diversified Economy

One of the points in favor of Santa Fe real estate investment is the area’s diverse economy. The job market is not just tied to the level of government employment and tourism, though these are major contributors. Manufacturing, retail, agriculture, and high tech are also sources of high-paying jobs and demand for the Santa Fe housing market. The roughly 4 percent unemployment rate isn’t much better than the national average but much better than the rest of the state, and the far better median household income fuels demand in the Santa Fe real estate market.

As of April 2022, Santa Fe, NM Unemployment Rate is at 3.80%, compared to 4.00% last month and 6.60% last year. This is lower than the long-term average of 4.58%. The median household income in Santa Fe is roughly $57,274, about more than the median income for the state of New Mexico ($51,243).

Property Values Are Appreciating

The median home value in the Santa Fe real estate market hovers around $402,649. Around 36% of the housing units are in the price range of $284,001 – $426,000. Appreciation rates for homes in Santa Fe have been tracking above average for the last ten years. This is due to the faster than average population growth because people are moving to the area for work. This is an improvement on the 1 to 2 percent annual appreciation the Santa Fe real estate market saw several years ago.

The average rent in Santa Fe is roughly 1,655 dollars a month. The area simply isn’t building enough new rental units to accommodate new residents and the large permanent rental markets. Yet this is a bargain compared to the rental rates in the more expensive neighborhoods in the Santa Fe housing market. For example, rents in Chupadero and Cuyamungue are over two thousand dollars a month. Do your research, and you could receive significant ROI on a Santa Fe real estate investment property.

There Is a Large Rental Population

About a one-third of residents in the Santa Fe housing market rent. However, that population is broken up into several groups that are unlikely to buy a home. As the state capital, there are several public and private colleges in the area. The University of New Mexico is the largest, but you can diversify your Santa Fe real estate investment portfolio by owning rental properties near St. John’s College, Southwestern College, the University of Natural Medicine, or the Santa Fe Art Institute.

Geographic constraints and local regulations limit how much new housing and dense housing can be built in the Santa Fe real estate market. This explains why housing in the Santa Fe housing market is roughly 80 percent more expensive than the New Mexico state average. The housing affordability index in the Santa Fe area is around 80, whereas the average would be 100.

This means that a large share of the population can’t afford to qualify to buy the average house in the Santa Fe real estate market. The Santa Fe housing market also faces literal geographic constraints. For example, it is sandwiched between Santa Fe National Forest and Hyde Memorial State Park. Furthermore, several Native American reservations and Pueblos are off-limits to real estate developers.

Seasonal Demand Creates an Unusual Opportunity

The Santa Fe housing market sees a small but significant influx of snowbirds or winter residents. It attracts those interested in its history, arts scene, and educational institutions instead of the perennial golfers heading to Scottsdale, Arizona. This also creates a larger than expected demand for mobile home slots and one and two-bedroom homes for rent.

It Is More Landlord Friendly than a Few of the Alternatives

New Mexico is truly on the edge of being called landlord friendly. It isn’t landlord friendly when you compare it to neighboring Colorado and Texas. Yet it is far more favorable for property owners than Arizona or Nevada. For example, you can charge late fees but they’re capped at 10 percent of the rent. Security deposits are typically set at one month, though longer leases can have a “reasonable” security deposit. If someone is late on rent, you have to send a three-day termination notice. If they pay the rent, they can stay. If they don’t, you can begin the eviction process. For lease violations, tenants have seven days to make corrections. However, if they re-offend within six months, you can begin eviction.

It Is Tax-Friendly for Property Owners

New Mexico has some of the lowest property tax rates in the U.S. The state's average effective property tax rate is 0.78%. The median annual property tax paid by homeowners in New Mexico is $1,403, about $1,200 less than the national median. Santa Fe County may be a good choice for you if you’re looking for low property taxes in New Mexico. The county’s average effective property tax rate is just 0.56%, which ranks as the 17th-lowest out of 33 counties in the state. At that rate, the annual taxes on a home worth $282,600 would be $1,570. In the city of Santa Fe, the total 2020 millage rate was just 24.031 mills.

Conclusion

Santa Fe is often overlooked in favor of larger cities in New Mexico or the more exotic, touristy destinations like Taos. However, the recovering real estate market is ripe for investment. Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Santa Fe, NM is your ability to find great real estate investments in that area.

According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market. We strive 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.

This article aimed to educate investors who are keen to invest in Santa Fe 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.

The other best place to invest in real estate in Albuquerque, NM. Albuquerque is an often overlooked real estate market in the West because it doesn’t make headlines. However, the strong fundamentals and positive long-term outlook make it a great place to consider investing. Data by Redfin shows that the Albuquerque housing market is not that competitive. Only a few homes in Albuquerque receive multiple offers. The average homes sell for about 3% above the list price and go pending in around 12 days. However, a hot listing can sell for about 7% above the list price and go pending in around just 5 days.

Another sizzling market to invest in real estate in Sacramento, CA. Sacramento is an island of sanity in an overpriced, over-regulated, and overheated West Coast housing market. It reflects the California ideal that most of the state has lost, and that’s we recommend it to investors over the “hotter” California metro areas. These are the same factors causing many Californians themselves to vote with their feet and move here instead of moving out of the state altogether.

One of the reasons to snap up a Sacramento real estate investment over one in the hotter real estate markets is that the area is safer overall. Sacramento has a slightly higher property crime rate than other big cities in the cities, but Sacramento has a much lower violent crime rate. People are more concerned about being mugged, raped, or murdered than having their car broken into. The nonviolent crime stats are also skewed due to the more lenient authorities in San Francisco and Los Angeles.

Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill up the form given here. One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.

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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References

• https://www.zillow.com/santa-fe-nm/home-values
• https://www.movoto.com/santa-fe-nm/market-trends
• https://www.neighborhoodscout.com/nm/santa-fe/real-estate
• https://www.redfin.com/city/18007/NM/Santa-Fe/housing-market
• https://www.realtor.com/realestateandhomes-search/Santa-Fe_NM/overview
• https://livability.com/nm/santa-fe/business
• https://www.forbes.com/places/nm/santa-fe
• https://www.bestplaces.net/housing/city/new_mexico/santa_fe
• https://sparkrental.com/new-mexico-rental-laws-guide                         
• https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
• http://money.com/money/4533659/where-retirees-go-winter-months
• https://www.areavibes.com/santa+fe-nm/cost-of-living
• https://www.santafenewmexican.com/life/real_estate/santa-fe-home-prices-increase-as-inventory-goes-down/article_1c24acac-1f61-5da6-a1b1-8415e271238c.html

If you are looking at investing in the Asheville real estate market as a potential investment opportunity, you must read till the end. Asheville, North Carolina sits in the Blue Ridge Mountains in the western part of the state. This area is often overlooked in favor of larger cities like Charlotte or Durham. However, the area has its own attractions whether you’re a tourist or considering Asheville real estate investment. Asheville proper is home to around ninety thousand people.

The Asheville housing market is larger than this, though, when you take the five-county metropolitan area into account. The larger Asheville real estate market is home to over four hundred thousand people. If you are an investor, Asheville real estate has a track record of being one of the best long-term investments. In Asheville, North Carolina, and the surrounding area, there are a variety of investment properties and income-producing types of real estate.

Asheville is a seller's housing market, which means prices are trending higher and homes are selling faster. The pandemic has supercharged an already hot real estate market. According to Redfin, a nationwide real estate brokerage, Asheville home prices were up 21.3% year over year in April 2022, selling for a median price of $485,000. On average, homes in Asheville sell after 36 days on the market compared to 43 days last year. The average homes sell for about 3% above the list price and hot homes can sell for about 9% above the list price and go pending in around 28 days.

Asheville North Carolina Housing Market Trends 2022

Asheville, North Carolina Metropolitan Statistical Area comprises the four counties of Buncombe, Haywood, Henderson, and Madison. Here is the Asheville Region's most recent housing market report published by the Canopy Realtor® Association. The following counties are considered a part of the Asheville region's core service area: Burke, Buncombe, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania, and Yancey counties in North Carolina.

Asheville MSA Housing Demand

• Median Home Price: $375,000 (+17.3% year over year)
• Average Home Price: $449,120 (+14% year over year)
• Median Days On Market: 37 (-37.3% year over year)
• Average List Price: $476,967 (+3.3% year over year)
• Percent of Original List Price Received: 99.4% (+2.4% year over year)

Asheville MSA Sales & Inventory

• Closed Sales: 1,078 (-10.2% year over year)
• Pending Sales: 1,258 (-1.8% year over year)
• New Listings: 1,303 (-3.9% year over year)
• Inventory of Homes for Sale: 1,101 (-43% year over year)
• Months Supply of Inventory: 0.9 (-43.8% year over year)

Asheville City's Housing Trends

• Median Home Price: $496,000 (+34.8% year over year)
• Average Home Price: $603,282 (+14.3% year over year)
• Median Days On Market: 35 (-36.4% year over year)
• Average List Price: $660,214 (+6.0% year over year)
• Percent of Original List Price Received: 102.1% (+4.5% year over year)
• Closed Sales: 178 (-20.5% year over year)
• Months Supply of Inventory: 0.8 (-46.7% year over year)

Buncombe County Housing Trends

• Median Home Price: $447,500 (+21.3% year over year)
• Average Home Price: $545,688 (+8.3% year over year)
• Median Days On Market: 34 (-32% year over year)
• Average List Price: $588,082 (+5.1% year over year)
• Percent of Original List Price Received: 101% (+3.3% year over year)
• Closed Sales: 390 (-7.1% year over year)
• Months Supply of Inventory: 0.8 (-42.9% year over year)

Asheville Real Estate Market Forecast 2022-2023

The typical home value in the Asheville metro is $392,744 (Zillow Home Value Index). Asheville metro home values have gone up 23% over the past year and 110% over the past decade. Similarly, the typical value of homes in the city of Asheville is $421,664, up 20.2% over the past year. The pandemic has fueled the demand in this region for the past two years. According to Zillow's forecast (ZHVI), Asheville metro home values will rise by 13.7% by the end of April 2023.

Asheville has experienced some of the highest home appreciation rates in the nation over the past decade. Over the past decade, Asheville real estate has appreciated 104.30 percent, which equates to an annual home appreciation rate of 7.41 percent, placing the city in the top 20 percent nationally for real estate appreciation, according to NeighborhoodScout's data.

As of the most recent twelve months, Asheville's appreciation rates continue to be among the highest in the United States, at 21.69 percent, which is higher than 78.55 percent of the nation's cities and towns. In Asheville, short-term real estate investors have found success over the past twelve months. In the most recent quarter, Asheville's appreciation rates were 8.23 percent, which equates to an annual appreciation rate of 37.19 percent.

Here is the Asheville real estate price appreciation graph by Zillow since the last decade. 

Some of the best neighborhoods in Asheville, North Carolina are Biltmore Forest, Oakley, and Kenilworth. Grove Park- Sunset has a median listing price of $1.5M, making it the most expensive neighborhood. Jackson Park is the most affordable neighborhood, with a median listing price of $325K.

Here are the 10 best neighborhoods in Asheville to invest in real estate because they have the highest appreciation rates since 2000 (List by Neigborhoodscout.com).

1. Pisgah View
2. Burton Street
3. Wilshire Park
4. East End valley Street
5. Hillcrest
6. Downtown
7. Chestnut Hills / Five Points
8. Montford
9. Wecan
10. Jackson Park / University of North Carolina at Asheville

If you are looking to buy real estate in Asheville, you should know the best places to invest in. The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. Demand would raise the price of your Asheville real estate and you should be able to flip it for a lump sum profit.

When looking to invest in Asheville real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Asheville investment property should be low. The neighborhoods in Asheville must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.

Asheville Real Estate Investment Overview

Is it worth buying a house in Asheville, NC? Investing in real estate is touted as a great way to become wealthy.  Many real estate investors have asked themselves if buying a property in Asheville is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Asheville housing market forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Asheville we have collected ten evidence-based positive things for those who are keen to invest in the Asheville real estate in 2022 and beyond.

Investing in Asheville real estate will fetch you good returns in the long term as the home prices in Asheville have been trending up year over year. Let’s take a look at the number of positive things going on in the Asheville real estate market which can help investors who are keen to buy an investment property in this city.

The Large and Diverse Student Market

Any college creates a large population of permanent renters. The Asheville housing market beats many college towns because it is home to several different universities. We’ll ignore the technical community college in Asheville and look at schools like Black Mountain College, Shaw University, Brevard College, Lenoir-Rhyne University, and Mars Hill University. Each has several hundred to several thousand students.

You could own multiple Asheville real estate investment properties, each near a different school, and thus have a diversified real estate portfolio for relatively little money. Yet the area’s economy is so diverse you could rent the same properties out to students if any of these small liberal arts colleges fold. Or you could simply rent out properties in the Asheville real estate market to UNC Asheville students.

Asheville and the Asheville metropolitan area have higher rents than the average for North Carolina but are generally close to the national average. Rents are increasing in the Asheville market, but prices fluctuate and options exist at both the low and high ends of the rent spectrum.

Studio apartments are the most affordable option, averaging $866 in Asheville and $794 in the Asheville metropolitan area. In this market, median rents are $848 based on 29 units available, down 7% over one year. One-bedroom apartments, a popular option, are slightly more, averaging $870 in the city and $799 in the metro area. In this market, median rents are $1,071 based on 204 units available, up 6% over one year.

CURRENT RENTAL TRENDS: As of May 31, 2022, the average rent for a 1-bedroom apartment in Asheville, NC is currently $1,246. This is a 14% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Asheville increased by 11% to $1,123. The average rent for a 1-bedroom apartment decreased by -17% to $1,246, and the average rent for a 2-bedroom apartment decreased by -14% to $1,455.

• The average rent for a 2-bedroom apartment in Asheville, NC is currently $1,455, an 11% increase compared to the previous year.
• The average rent for a 3-bedroom apartment in Asheville, NC is currently $1,698, a 3% increase compared to the previous year.
• The average rent for a 4-bedroom apartment in Asheville, NC is currently $375, an 84% decrease compared to the previous year.

The Demand for Affordable Homes is High

Given the amazing views, proximity to nature and examples like the Vanderbilt property in the area, the Asheville real estate market has seen more luxury homes built than affordable ones. Yet it is the smaller homes that appeal to couples looking for starter homes and retirees who don’t need something big. Depending on the area in the Asheville real estate market, it can be hard to find properties below 400,000. This is compounded by neighborhoods that say homes must be at least 1000 or 1200 square feet in size, preventing much cheaper homes from being built. This creates strong demand for affordable single-family rentals in the Asheville housing market.

The Literal Constraints of Geography

The same geography that attracts many tourists to the city limits the growth of the city. Asheville has east-west access via I-40 while Highway 26 connects it to other towns north and south. However, new construction going up mountainsides is expensive and risky. They simply cannot expand into Pisgah National Forest or the massive Nantahala National Forest. This limits the potential growth of the city.

Asheville is a charming city and metropolitan area that offers something for everyone, including scenic mountains, live music, locally produced food and drink, and a thriving arts scene. With approximately 89,000 residents and a metropolitan population of approximately 425,000, Asheville is the largest city in western North Carolina. Asheville can be found nestled between the Blue Ridge and the Great Smoky Mountains. Its location is one of the many factors that contributed to its inclusion on our list of the best places to live in North Carolina.

Walkable communities are all the rage. It is so important to many young couples and downsizing couples that new walkable planned neighborhoods are being built around the U.S. The Asheville housing market is unusual for already having an established, walkable downtown. The downtown is large enough to be a community in its own right, but it isn’t so large that the Asheville real estate market is depressed by blighted areas.

The Diversified Job Market

If Asheville’s lifeblood was tourism, we couldn’t recommend Asheville real estate investment because it would be too risky. However, the Asheville real estate market is buoyed by a diversified, solid job market. The city is the regional services hub. This means that the city, the state, and several government agencies are large local employers. So, too, are the local VA medical center, school system, and health system. Furniture makers, equipment manufacturers, and research facilities dot the area. This creates a large, healthy job market that can weather almost any storm.

The Potential for Short Term Rentals

The lush forests around Asheville attract tourists for hiking, rafting, and other outdoor activities. The city has limited short-term rentals, but that doesn’t mean this isn’t an option if you own Asheville real estate investment properties. For example, parts of the Asheville real estate market are zoned as “resorts”. You can rent these properties out on short-term rental sites to your heart’s delight.

Properties that already had short-term vacation rental permits are grandfathered into the existing rules, though you should verify the permit could transfer to you before buying the Asheville real estate investment property. Towns outside of Asheville proper have their own rules, too, and are more relaxed in this regard.

The Landlord-Friendly Environment

North Carolina in general is landlord friendly. The state is also far more landlord friendly than surrounding states like South Carolina, Virginia, and Tennessee. You can evict people for non-payment of rent, breaching the lease, criminal activity, and remaining on the property after termination of the lease. Major cities in the state don’t tack on additional tenant protections, either. We just can’t give North Carolina extra points on being tax-friendly for property owners; they’re literally average when it comes to income and property taxes.

Summary

Maybe you have done a bit of real estate investing in Asheville, NC but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. A good cash flow 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 Asheville real estate investment opportunity would be a key to your success. in If you invest wisely in Asheville real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.  The Asheville, North Carolina area is a stable, steadily growing housing market with several profitable rental markets investors would appreciate. It counterbalances this with a healthy job market and demographic momentum that will keep it going strong for years to come.

Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Asheville, NC is your ability to find great real estate investments in that area.

According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.

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

The aim of this article was to educate investors who are keen to invest in Asheville 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 own research and taking the help of a real estate investment counselor.

Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill up the form given here. One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.

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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References

Housing Market Data & Statistics
https://www.zillow.com/asheville-nc/home-values/
https://www.zillow.com/asheville-nc-28802/home-values/
https://www.carolinahome.com/market-data/monthly-reports
https://www.redfin.com/city/555/NC/Asheville/housing-market
https://www.realtor.com/realestateandhomes-search/Asheville_NC/overview
https://www.neighborhoodscout.com/nc/asheville/real-estate/

Job & Student market
https://en.wikipedia.org/wiki/Asheville,_North_Carolina

Walkable
https://expertvagabond.com/asheville-things-to-do

Landlord friendly
https://wallethub.com/edu/best-worst-states-to-be-a-taxpayer/2416
https://www.avail.co/education/laws/north-carolina-landlord-tenant-law

Short term rentals
https://www.usatoday.com/story/tech/news/2018/06/02/one-airbnb-hosts-fight-asheville-n-c-nearing-1-m-fines/657653002
https://www.citizen-times.com/story/news/local/2018/01/18/guide-ashevilles-short-term-vacation-rental-rules-can-you-rent-your-space/1035531001