Is Edmond, Oklahoma a good place to invest in real estate? There are points in favor of doing so, but most people have never even heard of this Oklahoma community. Let’s learn more about the Edmond real estate market before we discuss the pros and cons of Edmond real estate investment.
Edmond, Oklahoma is home to around a hundred thousand people. However, the Edmond housing market sits at the northern edge of the Oklahoma City metro area. Oklahoma City itself is home to over six hundred thousand people. The Oklahoma City metro area is home to 1.4 million people.
More importantly, it is growing. The Edmond real estate market has appreciated as more 150,000 people moved to the Oklahoma City area between 2010 and 2020. And many of them choose to live in Edmond and other suburbs that put you in reach of Oklahoma City jobs. Let’s learn more about the factors that drive property values in the Edmond real estate market. Then we’ll discuss whether or not you should consider investing in the Edmond real estate market. In the latest quarter, real estate appreciation rates in Edmond have been around 0.15 to 0.2%.
If they remain steady, the annualized appreciation rate would be around 0.6% to 1%, which could trigger good interest in the real estate investment opportunities in Edmond. In this article, we shall discuss some more important reasons why you may want to consider buying Edmond investment properties in 2020. Please note that there are many variables that can potentially impact the value of a home in Edmond (or any other market) and some of these variables are impossible to predict in advance.
What Makes Edmond a Good Place For Real Estate Investment?
Edmond Real Estate Market Forecast 2020
What are the Edmond real estate market predictions for 2020? Edmond housing market 2020 is shaping up to continue the trend of the last few years as one of the hottest markets in Oklahoma. The latest real estate data from Zillow shows that the current median home value in Edmond is $241,863. Edmond is currently a seller’s market – which means there are a lot of qualified buyers in the market place and not enough homes for sale in the market.
The home prices have risen by 3.4% over the last year. Looking forward in this year, the Edmond real estate market forecast is that home prices will continue to increase by 2.3%. Since 2015, the median home price in Edmond has increased from $220,000 to $242,000.
Here is the Edmond, OK real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 2.3% till Dec 2020.
The median list price per square foot in Edmond is $134, which is higher than the Oklahoma City Metro average of $120. The median price of current listings in Edmond is $312,340. The median rent price in Edmond is $1,399, which is higher than the Oklahoma City Metro median of $1,100.
Zillow reports that 11% of the listings in Edmond had a price cut in Dec 2019, which is a good thing for buyers. Homes are selling below their asking prices as the median price of homes that have been sold out is $250,300. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices.
Edmond Real Estate Market Trends
We shall now discuss some of the latest real estate market trends in the Edmond such as median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in this region. Relative affordability, strong economy and steady appreciation are some of the distinguishing factors making Edmond real estate market an alluring place for real estate investment in 2020.
Trulia has currently 1,934 resale and new homes for sale in Edmond, OK including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median sales price is $245,000 and homes are selling for about $113/sqft.
As per the real estate company called Neigborhoodscout.com, the median house price in Edmond is $204,899, which indicates that home prices in Edmond are around the national average for all cities and towns in the United States. Three and four bedroom single-family detached homes are the most common housing units in Edmond. Other types of housing that are prevalent in Edmond include duplexes, row houses and homes converted to apartments. Owner-occupied housing accounts for 71.55% of Edmond’s homes.
Currently, there are 1,687 single family homes for sale in Edmond, OK on Zillow. Additionally, there are 242 single family homes for rent in Edmond, OK. Under potential listings, there are about 1 Foreclosed and 72 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
In the past month, 293 homes have been sold in Edmond, OK on Redfin.com. In addition to houses in Edmond, there was also 1 condo, 20 townhouses, and 11 multi-family units for sale in Edmond last month. The median listing price is $335,000. According their statistics, the Edmond housing market is somewhat competitive. Homes in Edmond receive 1 offers on average and sell in around 38 days.
The average sale price of a home in Edmond was $265K last month, up 18.8% since last year. The average sale price per square foot in Edmond is $122, up 9.9% since last year. A hot listing in Edmond can sell for around list price and go pending in around 7 days.
Here is the latest Edmond housing market data for the month of Dec 2019 from Redfin.com. The sale to list price ratio shows us that it was a trending more like a seller’s market in the past month.
Edmond Housing Market Trends in Dec 2019
|Median List Price||$335,000|
|Avg. Sale / List||98.8%|
|Median List $/Sq Ft||$133|
|Median Sale Price||$265,000|
|Median Sale $/Sq Ft||$122|
There are currently 1,565 homes for sale in Edmond, OK on Realtor.com. The asking price of single family homes can start from $104,000 and can go up to $3.8M for a luxury property. There are currently 185 rental properties in Edmond and their rent prices range from $300 to $7,500 per month. There are 408 new construction homes for sale in Edmond within a price range of $167,000 to $1.6M.
The most affordable new constriction homes can found in the area with zip code of 73012. The home values in this neighborhood have risen around 3.4 % over the past 12 months and will rise 3.2% in the 12 months. 73034 and 73013 are popular zip codes for single family homes and condos for sale. If you are looking for 3-bedroom homes for sale in neighboring cities, you can go for Oklahoma City, Yukon, Guthrie, Piedmont and Jones. Oklahoma City is issuing building permits for single family housing slowly. New multi-family housing stock is slow to nonexistent.
The Core to Shore redevelopment of downtown Oklahoma City will bring new commercial buildings to accompany the new convention center. However, this urban redevelopment plan does not include condo towers and apartment buildings that would lower demand for rental units in the surrounding area.
According to Realtor.com, in December 2019, the Edmond housing market was a buyer’s market, which means there were roughly more active homes for sale than there were buyers. The median list price of homes in Edmond, OK was $279.3K in December 2019, trending up 1.8% year-over-year. The median listing price per square foot was $126.
Analyzing real estate data from multiple sources gives us a much broader perspective of the direction in which a market is moving. The median list price in Edmond, OK is $329,900 on Movoto.com. The median list price in Edmond was less than 1% change from December to January. Edmond’s home resale inventories is 938, which increased 0 percent since December 2019. The median list price per square foot in Edmond is $136.
As you can see in the graph, the median price per sq ft rose to its peak value in Dec 2019, when it was $135. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in January.
Edmond is a minimally walkable city in Oklahoma County. Some of the popular neighborhoods in Edmond are Copper Creek, Valencia, Olde Towne, Northeast Oklahoma City, Fairfax Estates, The Trails, Lost Creek, Oak Tree, Kickingbird Estates, Brookhaven North, Iron Horse Ranch, Oak Brook, Tall Oaks IV, Hidden Prairie at Kelley Pointe and Lake Hiwassee. Oak Tree has a median listing price of $530,000, making it the most expensive neighborhood. The Crossing is the most affordable neighborhood in Edmond , with a median listing price of $122,500.
If you are looking to invest in the Edmond real estate, you should that three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Edmond investment real estate and you should be able flip it for a lump sum profit. The neighborhoods in Edmond 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.
Edmond, OK Foreclosures And Bank Owned Homes Statistics
As per the Edmond foreclosure data by Zillow, the percent of delinquent mortgages in Edmond is 0.7%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Edmond homeowners underwater on their mortgage is 5.1%, which is lower than Oklahoma City Metro at 7.6%.
|Total No. of Foreclosures in Edmond||155 (RealtyTrac)|
|Homes for Sale in Edmond||689|
|Median List Price||$275,000 (2% rise vs Nov 2018)|
There are currently 155 properties in Edmond, OK that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 689. In December 2019, the number of properties that received a foreclosure filing in Edmond, OK was 54% higher than the previous month and 135% higher than the same time last year.
In Edmond, the zip code with the highest foreclosure rate is 73012, where 1 in every 1240 housing unit is foreclosed. 73003 zip code has the lowest foreclosure rate, where 1 in every 2371 housing units becomes delinquent.
Is Edmond a Good Place For Real Estate Investment?
Investing in good real estate markets is touted as a great way to become wealthy. Is Edmond a Good Place Real Estate Investment? Many real estate investors have asked themselves if buying a property in Edmond is good investment? If you want to find out whether Edmond real estate is a good investment or not, you need to drill deeper into local trends. The Edmond real estate trends will tell what the market holds for the year 2020. We have already discussed the latest Edmond housing market forecast for 2020.
Purchasing an investment property in Edmond 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 Edmond 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 Edmond 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. When looking for the best real estate investments in Edmond you should focus on neighborhoods with relatively high population density, employment growth and strong appreciation potential. Let’s now discuss state of the Edmond real estate market, which can help investors who are keen to buy an investment property in this city.
Edmond Property Values
The average home in the Oklahoma City real estate market is around 150,000 dollars. Median rent in the OKC housing market including one bedroom apartments and single family homes is a little over 800 dollars a month. The Edmond real estate market is more desirable. That’s why the average home in the Edmond housing market costs around 215,000 dollars, and the median rent is nearly a thousand dollars a month.
The Edmond real estate market has a larger than expected share of renters due to the presence of Tinker Air Force Base. The city is the largest single-site employer in the state. More than thirty thousand people work there, and it creates an estimated thirty thousand more secondary jobs. This drives up rental rates for Edmond real estate investment property without having a major impact on property values.
Oklahoma City has been growing in part due to its strong job market. It is attracting people from surrounding rural areas as well as from across the country. The area’s unemployment rate is 3.3 percent, half a percent below the national average. Average pay is 46K. That’s four thousand dollars less than the national average. However, median household income in Oklahoma as a whole is roughly 52K, and many families have two wage earners, and Oklahoma has a lower than average cost of living.
Salaries in the northern suburbs of Oklahoma City, including the Edmond housing market, are higher than the regional average because of the larger share of oil and gas workers living there. The Edmond real estate market is more stable than the rest of Oklahoma City because of the diversity of employers. The University of Central Oklahoma creates roughly 1500 jobs in the city.
The OU Medical Center creates another several hundred high paying jobs. Summit Medical Center is roughly half that size. There are two smaller colleges, Herbert W. Armstrong College and Oklahoma Christian University, in the city. This provides both stable jobs to the local economy and adds to the large pool of student renters in the Edmond real estate market. A side benefit of the large student population is that it contributes to the long-term population growth in the Edmond area.
Oklahoma’s overall tax burden ranking is between 35 and 40 out of the 50 states, depending on whether you use the percentage of income going to taxes or the total tax bill paid as the measure. The average property tax bill on an Edmond real estate investment property would be around 0.9 percent of its appraised value. Factor in the low property prices, and your average property tax bill will be less than a thousand dollars. For comparison, the average property tax bill in Texas is 1.6 percent of the property’s value and approaches two thousand dollars a year.
Oklahoma is landlord friendly, though it is not as landlord friendly as Texas. The city doesn’t let you commingle security deposits, but it doesn’t require you to pay interest on deposits. Written rental agreements are required. There is no limit on late fees as long as they are specified by the rental agreement. You do have to provide notice of hazards and notice before you enter the property.
The state itself doesn’t require a rental license to rent out an Edmond real estate investment property. If you buy an Edmond real estate investment within an LLC, the top corporate income tax rate is six percent. That’s in line with the national average. Combine that with the low property taxes on any property in the Edmond housing market, and you’ll have a lower than average overall tax bill for the Edmond real estate investment property.
Quality of Life
Time’s Money Magazine put Edmond on their list of the top 50 places to live in 2016. It was the only city in Oklahoma to make the list. One reason is that it has one of the top school districts in the state. Oklahoma City’s redevelopment projects like a new baseball park, water canal and fairgrounds led to the area’s rebound in the 1990s, making it unusual for recovering from a declining population in the 1970s and 1980s. The city ranks a C for crime and safety. However, it gets an A for schools, housing costs, family amenities and nightlife.
It is hard to find that combination of affordability, educational quality and general quality of life. Note that the large military and oil worker population contribute to the crime levels, as well. That is a point in favor of Edmond real estate investment, and it explains why the Edmond housing market was ranked both the best place to live and best place to raise a family in the entire state of Oklahoma. That will only bolster property values in the Edmond housing market long-term.
Investing in Edmond Real Estate or Not: The Conclusion
Maybe, you have done a bit of real estate investing in Edmond, OK 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. Should you consider Edmond real estate investment? If you are considering investing in the south central part of the United States, we would recommend Edmond real estate investment over trying to buy more expensive and more heavily taxed properties in Texas.
The Edmond housing market isn’t as cheap as other parts of Oklahoma, but it benefits from strong population growth, a solid job market and excellent long-term trends that will keep both rents and property values growing for years to come. A good cash flow from Edmond investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Edmond real estate investment opportunity would be a key to your success. If you invest wisely in the Edmond 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. You must also collaborate and learn from savvy investors who have retired early on in their lives by investing locally in the Edmond real estate market. As with any real estate purchase, act wisely. Evaluate the specifics of the Edmond housing market at the time you intend to purchase.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. 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.
The aim of this article was to educate investors who are keen to invest in Edmond real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Good Markets To Invest in Real Estate in 2020
Another good market to invest in real estate in 2020 is New Haven in Connecticut. The New Haven housing market is a gem in the rough in the Northeast. It isn’t landlord friendly, nor does it generate incredibly high rental rates. However, it is a profitable real estate market that offers lower taxes and less red tape than nearby metro areas.
The other good place for real estate investment is Clarksville in Tennessee. The Clarksville TN real estate market offers a number of strong fundamentals. There is a solid job market and massive rental market. As long as the military base doesn’t close, the area will see continual growth. Yet there isn’t enough demand to lead to a building boom that will kill property prices.
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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
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