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Palm Bay, FL Real Estate Market 2019 Statistics
If you are looking at buying a house in Palm Bay as a potential investment opportunity, you must read till the end. Home prices in the Palm Bay real estate market are expected to rise by 3.7% in 2020. Palm Bay is a city in Florida well north of hotter markets like Miami and Orlando. The city is several hours north of famous cities like Palm Beach, and it is a modest distance southeast of Orlando. This city shouldn’t be confused with the much more famous and expensive Palm Beach to the south.
If you are a home buyer or real estate investor, Palm Bay definitely has a track record of being one of the best long term real estate investments through the last ten years. Palm Bay has a population of around a hundred thousand people. However, the Palm Beach housing market is much larger than this. The Palm Bay metropolitan area is home of over half a million people. The 32095 zip code sits on the shore, while the rest of the metro area is inland. Let us now discuss the latest Palm Bay housing market trends and forecasts for 2019 & 2020 and find out why you should invest in this cash flow rental market.
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America’s 15th Fastest Growing City (Forbes 2014) |
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Palm Bay Real Estate Market Forecasts 2019 & 2020
Pixabay" width="540" height="333" />The median home value in Palm Bay is $179,000 on Zillow. Palm Bay home values have gone up 6.3% over the past year and Zillow’s Palm Bay real estate market prediction is that the prices will rise by 3.7% in 2020. The median list price per square foot in Palm Bay is $92, which is lower than the Palm Bay-Melbourne-Titusville Metro average of $116. The median price of homes currently listed in Palm Bay is $192,000 while the median price of homes that sold is $184,500. The median rent price in Palm Bay is $1,350, which is lower than the Palm Bay-Melbourne-Titusville Metro median of $1,500.
According to LittleBigHomes.com, the Palm Bay real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Palm Bay real estate market trend prediction is 70%. Accordingly, they estimate that the probability for rising home prices in Palm Bay is 70% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Palm Bay Housing Market Forecast 2019 – 2021
The Palm Bay housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Palm Bay housing market trend prediction is 69%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Palm Bay is 69% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Palm Bay Real Estate Market Forecast.
Palm Bay Real Estate Market Trends
Palm Bay real estate market trends indicate an increase of $10,000 (6%) in median home sales and a 2% rise in median rent per month over the past year. The average price per square foot for this same period rose to $113, up from $110. Trulia has 879 resale and new homes for sale in Palm Bay, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Palm Bay for Jan 25 to Apr 24 was $176,000 based on 497 home sales. Average price per square foot for Palm Bay was $113, an increase of 3% compared to the same period last year. The median rent per month for apartments in Palm Bay for Mar 28 to Apr 28 was $1,400.
Palm Bay Housing Market Statistics
- Median Sales Price: $176,000 (On Trulia)
- Median Rent Per Month: $1,400
- Price Per Sqft: $113
- Median Household Income: $46,550
- Home Owners: 79%
- Single Residents: 29%
- Median Age: 40
- College Educated: 26%
- Transportation: 98% people commute by car
There are 2,735 homes for sale in Palm Bay, ranging from $3K to $5.9M on Realtor.com. 111 of which were newly listed within the last week. Additionally, there are 91 Palm Bay rental properties, with a range of $657 to $4.5K per month. In February 2019 the housing market in Palm Bay, FL 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 Palm Bay, FL was $147.7K in February 2019, trending down -4.6% year-over-year. The median listing price per square foot was $119. The median sale price was $152.5K. Homes in Palm Bay, FL sold for 2.53% below asking price on average in February 2019. On average, homes in Palm Bay, FL sell after 91 days on the market. The trend for median days on market in Palm Bay, FL is flat since last month, and flat since last year.
The median list price in Palm Bay is $215,000 on Movoto.com. The median list price in Palm Bay was less than 1% change from April to May. Palm Bay’s home resale inventories is 578, which increased 0 percent since April 2019. The median list price per square foot in Palm Bay is $123. April 2019 was $122. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in May.
Palm Bay Single Family And Multi-Family Homes
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
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Palm Bay is $174,264, which indicates that home prices in Palm Bay are near the national average for all cities and towns. Single family detached homes are the single most common housing type in Palm Bay, accounting for 81.35% of the city’s housing units. Other types of housing that are prevalent in Palm Bay include large apartment complexes or high rise apartments ( 9.03%), mobile homes or trailers ( 4.44%), and a few duplexes, homes converted to apartments or other small apartment buildings ( 3.00%).
Owner-occupied, three and four bedroom dwellings, primarily in single-family detached homes are the most prevalent type of housing you will see in Palm Bay. Owner-occupied housing accounts for 70.45% of Palm Bay’s homes, and 74.12% have either three or four bedrooms, which is average sized relative to America. Currently, there are 807 single family homes for sale in Palm Bay, FL on Zillow. These include upcoming potential listings such as properties which are in the stage of Pre-Foreclosure. Additionally, there are 65 single family homes for rent in Palm Bay, FL.
Palm Bay, FL Foreclosures And Bank Owned Homes
The percent of delinquent mortgages in Palm Bay is 1.3%, which is higher than the national value of 1.1%, according to Zillow.com. 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 Palm Bay homeowners underwater on their mortgage is 5.2%, which is higher than Palm Bay-Melbourne-Titusville Metro at 4.9%.
- Foreclosures in Palm Bay = 354 (RealtyTrac)
- Homes for Sale in Palm Bay = 623
- Median List Price = $189,000 (2% ⇑ vs Feb 2018)
There are currently 354 properties in Palm Bay, FL that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 623. In March 2019, the number of properties that received a foreclosure filing in Palm Bay, FL was 17% higher than the previous month and 12% higher than the same time last year.
Home sales for February 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Palm Bay was $0. The median sales price of a foreclosure home in Palm bay was $0, or 0% higher than non-distressed home sales.
Palm Bay Home Prices And Real Estate Appreciation
Palm Bay real estate appreciated 46.60% over the last ten years, which is an average annual home appreciation rate of 3.90%, putting Palm Bay in the top 10% nationally for real estate appreciation. During the latest twelve months, Palm Bay’s real estate appreciation rate, at 7.04%, has been at or slightly above the national average. In the latest quarter, Palm Bay’s real estate appreciation rate has been -0.51%, which annualizes to a rate of -2.03%.
Notably, Palm Bay’s appreciation rate in the latest quarter is one of the lowest in the U.S. The above statistics on real estate appreciation in Palm Bay were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Florida, their data shows that Palm Bay’s latest annual appreciation rate is lower than 80% of the other cities and towns in Florida.
10 Best Neighborhoods In Palm Bay For Real Estate Investment
There are 47 schools in Palm Bay, FL. There are 20 elementary schools, 9 middle schools, 6 high schools and 12 private & charter schools. There are 9 neighborhoods in Palm Bay. Some of the best neighborhoods in or around Palm Bay, Florida where you can buy investment properties are The Compound, Port Malabar Country Club and Bayside Lakes.
South Cove has a median listing price of $298.9K, making it the most expensive neighborhood. The Compound is the most affordable neighborhood in Palm Bay, with a median listing price of $10.7K. Here are the 10 best neighborhoods in Palm Bay to invest in real estate because they have the highest real estate appreciation rates (List by Neigborhoodscout.com).
- Palm Bay Rd NE / Minton Rd
- Pinewood Dr NE / Palm Bay Rd NE
- Tree Ridge Ln NE / Forest Knoll Dr NE
- Jupiter Blvd NW / Pace Dr NW
- Glendale Ave NW / Pace Dr NW
- Babcock St SE / Agnes Ave SE
- Malabar Rd NW / Abalone Rd NW
- Fallon Blvd NE / Babcock St NE
- Dixie Hwy NE / Overlook Dr NE
- Babcock St SE / Wyoming Dr SE
Should You Invest in Palm Bay Rental Houses?
Investing in real estate is touted as a great way to become wealthy. Is Palm Bay rental house good for investment? Planning to invest in the Palm Bay real estate market? Many real estate investors have asked themselves if buying a property in Palm Bay is 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 Palm Bay housing market 2019 forecast for answers on why to put resources into this sizzling market. The home prices in the Palm Bay housing market will be on an upswing all through 2019. The Palm Bay home prices are expected to rise by 3.7% in 2020. Here are the top 10 reasons to invest in the Palm Bay real estate in 2019.
1. The Affordable Real Estate Market
The median home in the Palm Bay housing market costs less than $200,000. The average home costs around $180,000. This is well below the national average, and it is quite affordable for Florida real estate, as well. It makes the Palm Bay real estate market a bargain when you realize that it is so close to the water. You can find beachfront condos for $150,000 or less.
2. The Cheap Beach Homes
The Palm Bay real estate market made a top ten list of communities offering affordable beach houses. The Palm Bay housing market came in seventh on the Realtor site’s 2018 list of most affordable beach towns. Properties on the water can be found for less than half a million dollars. Single family homes on the ocean can be found for a million dollars.
3. The Opportunity to Find a Deal
Nationwide, about one in every 2500 homes is in foreclosure. The average for Palm Bay is roughly one out of every 800 homes. In the 32908 zip code, about 1 in every 600 homes is in foreclosure. The 32905 zip code containing the most valuable beachfront real estate has a foreclosure rate of roughly 1 home out of 1200.
This means the odds beach homes in the Palm Bay housing market are in foreclosure is twice the national average, and that provides the opportunity to secure beachfront rentals at a discount. A side benefit of the affordable Palm Bay real estate market is that you could find properties being sold by snowbirds and retirees who can’t come back.
Those properties may not be in foreclosure, but they may sell for a discount just to eliminate the ongoing expenses. Or they may come up as part of an estate sale. Do your research, and you could find a bargain.
4. The Strong Job Market
The Palm Bay area has an unemployment rate of less than 4 percent, and it is regularly several tenths of a percent lower than the national average. This area is part of the “Space Coast”, because it is so close to Cape Canaveral and the Kennedy Space Center. This is why the city has a large number of high tech employers. One point in favor of owning Palm Bay rental houses is the steady stream of people relocating to the area who want to rent before they buy.
5. Slow, Steady Appreciation
Many people move here for work, but it isn’t such a hot job market that prices are skyrocketing. The market is slowly growing due to population growth and gradual expansion of the job market. Home prices grew roughly 13 percent over the past ten years, though that time interval includes the Great Recession that didn’t really end until 2016.
This is a benefit for owners of Palm Bay rental houses, because supply is growing quite slowly. You won’t see home prices drop because someone opened a new apartment tower or massive master-planned community.
6. The Decent Return on Investment
The median rent in this area is a thousand dollars a month, slightly higher than the national average. And you can rent out single family homes for well over a thousand dollars, though you could snap up a single family home for around $150,000. This gives the Palm Beach housing market a better than average return on the investment.
7. The Strong Rental Market
Roughly thirty percent of the people living in the Palm Bay real estate market are renters. While this is in line with the national average, it is unusually high given how cheap Palm Bay rental homes would be to buy. This is because per capita income is about 30 percent lower than the national average, and median household income is 20 percent.
A lesser factor in this equation is the growth of Orlando.
The western side of the Palm Bay housing market is on the east side of Orlando’s suburbs. And there are a few people who live here to commute to work in Orlando. The high cost of Orlando housing will slowly drive residents and employers toward Palm Bay.
8. The Military Market
The Palm Bay real estate market is within commuting distance of Patrick Air Force Base and the Malabar Annex Air Force Base. Both military bases provide a steady stream of renters interested in Palm Bay rental houses. The fact that the Palm Bay economy is so diverse means that the Palm Bay housing market is much more stable than cities that rely on the jobs – and income – to keep home values high.
9. The Low Tax Bill
Florida doesn’t have a state income tax. As the owner of Palm Bay rental properties, the high sales tax rate doesn’t affect you, only the property tax rate. A side benefit of the low price tag of Palm Bay real estate is that it results in a low property tax bill.
A point in favor of Florida over markets like Texas is that property valuations can only go up 3 percent or the Consumer Price Index per year, though it could go up 3 to 4 percent a year for several years in a row.
If you own multiple Palm Bay rental properties, the state’s lack of a death tax could be a major benefit to your heirs. Not only does the state not have a death or inheritance tax, but the state constitution actually forbids it.
10. The Landlord-Friendly Climate
One thing that makes Florida landlord friendly is the fact that the state doesn’t have any rent control laws on the books. There is no limit on security deposits. Overdue rent must be paid within three days. If a tenant intentionally damages the property, the landlord can kick them out with a seven day unconditional quit notice.
Repeated violations of the lease can also result in an unconditional quit notice, though this can end up in court. There are no state laws limiting how quickly rents can increase. This means you could raise the rents on Palm Bay rental houses ten percent per year, though you’d need to keep the rent in line with what the market will bear.
Furthermore, there are no oppressive local regulations for owners of Palm Bay rental houses. Many Florida jurisdictions decided to make AirBnB and other short term rentals legal as long as owners paid the appropriate taxes.
This opens the door to renting out homes in the Palm Bay housing market to snowbirds or people passing through without worrying about the legality of it.
Palm Bay Real Estate Investment
Maybe you have done a bit of real estate investing in Palm Bay, FL 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. If you are a home buyer or real estate investor, Palm Bay real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Palm Bay 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.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Palm Bay, FL. The Palm Bay real estate investment offers an excellent mix of affordability, slow growth and high returns. Demand for Palm Bay rental houses ranges from those seeking affordable beach homes in retirement to locals who just need a place to live.
Palm Bay Investment Properties For Sale ⇐ Click Here
Buying a Palm Bay investment property is different from buying an owner-occupied home. Our Palm Bay investment properties are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business. These are “Turnkey Cash Flow Investment Properties” located in some of the best neighborhoods of Palm Bay.
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 Palm Bay, FL 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 Palm Bay and other growth markets.
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Other Best Places To Invest In Real Estate
Another market that we suggest is the housing market in Pensacola, Florida. The Pensacola real estate investment can be as warm as the water along its beautiful beaches. The Pensacola housing market is inviting to locals and tourists alike, generating a steady stream of revenue. Investors are making a mistake if they pass over this market in favor of overheated markets like Miami or Orlando.
The Pensacola real estate market is affordable to locals, tourists and investors alike because it isn’t being bid up as if it were the next Silicon Valley or the Orlando neighborhoods near Disneyworld. Ironically, the relatively lukewarm tourist market means you aren’t competing against city blocks lined with luxury hotels or all-inclusive resorts, either.
Another best place to invest in real estate is Baton Rouge, LA. Forget New Orleans and the hope of profiting off its steady stream of tourists. The Baton Rouge housing market isn’t as glamorous, but it offers more affordable properties, a steady rental market, and higher return on the investment.
The Baton Rouge real estate market is notable for how well it ranks on lists of cities with the highest rate and profitability for house flippers. Over 3 percent of all home sales in the Baton Rouge housing market were because of house flippers. Their average profits in 2018 were around $70,000 per house.
This gave the Baton Rouge real estate market the second highest return on the investment for house flippers in the country. If you can turn a single family home into affordable apartments, you’ll be able to earn significant returns in a market desperate for affordable housing.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, 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
https://www.bestplaces.net/city/florida/palm_bay
Job market
https://www.bestplaces.net/city/florida/palm_bay
https://en.wikipedia.org/wiki/Palm_Bay,_Florida
Home appreciation
https://www.bestplaces.net/city/florida/palm_bay
ROI
https://www.niche.com/places-to-live/palm-bay-brevard-fl
Taxes
https://www.thebalance.com/an-overview-of-taxes-in-florida-3193256
Landlord friendly
http://www.landlordstation.com/blog/top-landlord-friendly-states
https://www.floridatrend.com/article/24178/florida-laws-seem-to-favor-landlords-over-renters-survey-says
https://www.avalara.com/mylodgetax/en/blog/2018/06/new-orlando-short-term-rental-rules-start-july-1.html
Foreclosure rate
https://www.realtytrac.com/statsandtrends/foreclosuretrends/fl/brevard-county/palm-bay
https://www.attomdata.com/news/market-trends/figuresfriday/january-2019-foreclosure-filings-see-an-uptick
Cheap beach houses
https://www.realtor.com/news/trends/americas-most-affordable-beach-towns-2018-edition
Military market
Market Data, Trends and Statistics
https://www.zillow.com/palmbay-fl/home-values
https://www.trulia.com/real_estate/Palm_Bay-Florida
https://www.littlebighomes.com/real-estate-palm-bay.html
https://www.neighborhoodscout.com/fl/palm-bay/real-estate
https://www.realtor.com/realestateandhomes-search/Palm-Bay_FL/overview https://www.movoto.com/palm-bay-fl/market-trends
