The housing market in Waco is vibrant and dynamic, characterized by robust activity and steady growth. With significant increases in sales volume and prices, both single-unit residential housing and single-family homes are in high demand, reflecting a healthy appetite among buyers.
One of the key indicators of market competitiveness is the rise in both average and median prices, signaling strong buyer interest and competition for available properties. Additionally, the surge in sales volume demonstrates the willingness of buyers to actively participate in the market, further contributing to its competitiveness.
The future market outlook for Waco remains positive, albeit with some potential challenges on the horizon. Continued job growth and economic stability bode well for sustained demand in the housing market. However, factors such as limited inventory and rising prices may pose challenges for prospective buyers.
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Current Trends in Waco Housing Market
The real estate market in Waco is showing interesting trends, with fluctuations noted in various key indicators.
Waco Single-Unit Residential Housing
- Single-unit residential housing saw a 5.81% YoY decrease in sales volume, dropping from 258 to 243 transactions.
- The year-to-date sales amounted to 608 closed listings.
- There was a decline in dollar volume from $85.65 million to $79.89 million.
- The average sales price experienced a 0.98% YoY decrease from $331,995 to $328,757.
- The average price per square foot also declined from $175.81 to $167.12.
- The median price rose 7.59% YoY from $275,113 to $295,998.
- However, the median price per square foot saw a slight dip from $173.06 to $172.20.
- The months inventory for single-unit residential housing rose from 2.9 to 4.0 months supply.
- Days to sell increased from 83 to 109.
Waco Single-Family Homes
- Single-family homes exhibited a 4.03% YoY decrease in sales volume, falling from 248 to 238 transactions.
- The year-to-date sales amounted to 587 closed listings.
- Similar to single-unit residential housing, there was a decrease in dollar volume from $83.52 million to $78.7 million.
- The average sales price experienced a 1.81% YoY decrease from $336,789 to $330,676.
- The average price per square foot declined from $172.74 to $166.76.
- The median price rose 5.99% YoY from $286,700 to $303,880.
- However, the median price per square foot saw a slight decrease from $172.46 to $172.18.
- The months inventory for single-family homes rose from 2.9 to 4.1 months supply.
- Days to sell increased from 84 to 110.
Waco Economic Indicators
The job market in Waco also experienced growth, indicating potential economic stability.
- March MSA jobs increased from 133,800 to 137,600, marking a 2.84% YoY increase compared to March 2023, with a net increase of 3,800 new jobs.
- Over the past five years, the job growth rate has increased at an average annual rate of 2.25%.
- Additionally, the unemployment rate for March decreased to 3.67% from 3.91% in 2023.
These statistics paint a picture of a market in flux, with both positive and negative indicators. While there's been a decrease in sales volume and average prices in some sectors, the rise in median prices and job growth indicate underlying strength. For potential investors, it's crucial to analyze these trends carefully and consider the long-term viability of investments in the Waco housing market.
Is Waco a Seller's Real Estate Market?
Yes, based on the provided data, it appears that the Waco housing market is leaning towards a seller's market.
- Decreased sales volume coupled with an increase in median prices suggests that demand may be outpacing supply.
- The rise in median prices despite a decrease in average prices indicates that sellers have the upper hand in negotiations.
- The increase in days to sell and months inventory further suggests that properties are staying on the market for longer, which is typically indicative of a market favoring sellers.
Overall, these indicators point towards conditions where sellers have an advantage in the market, hence categorizing it as a seller's market.
Waco, TX Real Estate Appreciation
Waco, Texas, has quietly become a darling of the real estate market. Over the past decade, the city has witnessed impressive appreciation rates, transforming it into a strong contender for long-term investments. But what exactly makes Waco's real estate market so interesting? Let's delve into the data and explore the factors behind this exciting trend.
A Decade of Stellar Performance
The undeniable strength of Waco's real estate market lies in its sustained growth trajectory over the past ten years. Homes in Waco have appreciated a staggering 116.28%, translating to an impressive average annual rate of 8.02%. This places Waco within the top 20% nationally for real estate appreciation, a clear indicator of its outstanding performance.
Home Price Appreciation Across Timeframes
While the long-term trend is undeniably positive, it's important to consider shorter timeframes to get a more nuanced picture. Here's a breakdown of Waco's appreciation rates across various periods:
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Latest Quarter (Q3 2023 – Q4 2023): There was a slight dip of -2.31% in home values, which translates to an annualized rate of -8.91%. It's crucial to remember that this is a short-term fluctuation and shouldn't overshadow the long-term growth trend. Real estate markets are cyclical, and occasional dips are normal.
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Last 12 Months (Q4 2022 – Q4 2023): Appreciation remained modest at 1.66%, indicating a period of stabilization after the strong gains of previous years. This stabilization suggests the market may be finding a new equilibrium after a period of rapid growth.
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Last 2 Years (Q4 2021 – Q4 2023): This timeframe reflects a more significant appreciation of 17.76%, averaging 8.52% annually. This period highlights the market's continued potential for growth even amidst short-term adjustments.
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Last 5 Years (Q4 2018 – Q4 2023): Appreciation reached a healthy 60.55%, averaging 9.93% annually over the five-year period. This timeframe showcases Waco's ability to deliver consistent growth over a medium-term horizon.
The data reveals that Waco's appreciation rates have consistently ranked among the top 10% in Texas over various timeframes. This strong performance within the state, known for its robust real estate market, further emphasizes Waco's potential.
Waco's real estate market presents a compelling opportunity for investors with a long-term perspective. The city's sustained growth trajectory over the past decade is a testament to its potential. However, it's crucial to acknowledge the recent short-term fluctuations and consider them within the larger context.
Waco Housing Market Predictions
The average Waco home value is $258,689, up 1.4% over the past year and going to pending in around 32 days (Zillow).
Median Sale Price
Median sale price is a key metric in the real estate market that represents the middle point of all home sales within a specified period. In this context, as of March 31, 2024, the median sale price was $262,967. This means that half of the homes sold during this period were priced above this amount, while the other half were priced below it.
Median List Price
Median list price refers to the midpoint of all homes listed for sale within a certain timeframe. As of April 30, 2024, the median list price stood at $301,300. This indicates the typical asking price for homes on the market at that time.
Percent of Sales Over/Under List Price
These metrics provide insights into the competitiveness of the real estate market. A percent of sales over list price of 17.3% as of March 31, 2024 suggests that approximately 17.3% of homes sold during that period were purchased for more than their listed price. Conversely, a percent of sales under list price of 66.9% indicates that a significant majority of homes sold during that same period went for less tha
Forecast for Waco MSA Housing Market
In examining the housing market forecast for the Waco Metropolitan Statistical Area (MSA), situated in Texas, the data reveals a trajectory of incremental growth over the coming months. As of the base date on April 30, 2024, the forecast projects a modest increase with a value of 0.3.
Looking ahead to May 31, 2024, and July 31, 2024, the forecast remains steady at 0.3. However, the real uptick is anticipated by April 30, 2025, where the forecasted value rises to 0.4. This trajectory suggests a cautiously optimistic outlook for the Waco MSA housing market, indicating a gradual but positive trend in market activity and potentially increasing property values over the specified period.
Waco, Texas, has been experiencing a boom in recent years. Fueled by a growing economy, affordability, and a unique charm, the city has attracted residents and investors alike. This has naturally led to a dynamic housing market, and with 2024 already half over, what can we expect for the rest of the year?
Looking Forward: Moderate Growth with Potential
Experts predict continued moderate growth for Waco's housing market throughout 2024. Here's a breakdown of what this might entail:
- Price Stability: While some modest appreciation is possible, significant price jumps seem unlikely. The market is expected to find a new equilibrium between buyer affordability and seller expectations.
- Inventory: A slight rise in inventory is anticipated, providing buyers with more options. However, with Waco's strong fundamentals, a seller's market might return in the long term.
Factors Influencing the Market
Several factors will continue to shape the Waco housing market in 2024:
- National Economy: The overall health of the US economy will undoubtedly play a role. A strong national market could fuel further growth in Waco, while an economic slowdown might dampen enthusiasm.
- Local Job Market: Waco's ongoing economic diversification is expected to attract new residents seeking employment opportunities. A thriving job market will undoubtedly put upward pressure on housing demand.
- Interest Rates: Federal interest rate hikes could impact affordability and potentially cool the market slightly. However, Waco's relative affordability compared to national averages might help mitigate this effect.
Waco's housing market in 2024 is poised for stability with the potential for moderate growth. While significant price surges might be a thing of the past, the city's strong fundamentals suggest it remains a viable option for both homeowners and investors seeking long-term value. Whether you're looking for a charming place to call home or a promising investment opportunity, Waco deserves a spot on your shortlist.
Should You Invest in the Waco Real Estate Market?
Population Growth and Trends
Investing in the Waco real estate market presents several compelling reasons, one of which is the city's population growth and trends. Waco has experienced steady population growth in recent years, with many individuals and families choosing it as their new home. This factor alone offers opportunities for real estate investors:
- **Population Growth:** The consistent influx of new residents indicates a growing demand for housing. As more people move to Waco, the need for both rental and for-sale properties increases.
- **Young Workforce:** Waco is home to several educational institutions, including Baylor University. This attracts students and young professionals, contributing to a dynamic and diverse community that often seeks rental properties.
Economy and Jobs
Waco's economy and job market are essential factors to consider when evaluating real estate investment opportunities:
- **Economic Opportunities:** Waco has seen a rise in economic opportunities, including job growth in various sectors. The recent increase in jobs, as evidenced by a 1.95% year-over-year growth, is a positive indicator for real estate investors.
- **Diverse Industries:** The city's economy benefits from a mix of industries, including manufacturing, education, healthcare, and agriculture. A diverse economic landscape can enhance a region's resilience to economic fluctuations.
Livability and Other Factors
Waco offers a high quality of life, attracting residents and making it an enticing location for real estate investment:
- **Cultural Attractions:** Waco boasts cultural attractions, including museums, parks, and historic sites, enhancing its appeal to residents and visitors.
- **Affordability:** The cost of living in Waco is relatively lower than in many larger cities, making it attractive for individuals and families looking for affordable housing options.
- **Community Growth:** The city's commitment to community development and infrastructure improvements ensures the area's long-term livability and potential for real estate appreciation.
Rental Property Market Size and Growth
The rental property market in Waco has seen significant growth and offers numerous opportunities for real estate investors:
- **Student Housing:** With several educational institutions in Waco, there's a consistent demand for student housing. Investing in properties near these institutions can yield stable rental income.
- **Tourism and Short-Term Rentals:** Waco has gained popularity as a tourist destination, drawing visitors to attractions like Magnolia Market. Real estate investors can tap into the short-term rental market by offering vacation homes or Airbnb-style accommodations.
- **Rental Appreciation:** Rental properties in Waco have the potential for appreciation, providing investors with both cash flow and the prospect of long-term capital gains.
Other Factors Related to Real Estate Investing
When considering Waco as an investment destination, here are some additional factors to keep in mind:
- **Market Stability:** Waco has demonstrated resilience in the face of economic challenges, making it a stable market for real estate investment.
- **Local Regulations:** Understanding local housing regulations and property management practices is crucial for a successful investment venture in Waco.
- **Property Type:** Assess whether you want to invest in residential or commercial properties, and choose the type that aligns with your investment goals.
- **Long-Term vs. Short-Term Investment:** Decide whether you're looking for immediate rental income or long-term capital appreciation, and choose properties accordingly.
The Waco real estate market offers a range of opportunities for investors, driven by population growth, a diverse economy, and a thriving rental market. However, thorough research, due diligence, and a clear investment strategy are essential to make the most of these opportunities. As with any investment, it's advisable to consult with real estate professionals and financial advisors before making a decision.