Charlotte is the largest city in North Carolina. However, can you ignore it in favor of smaller metro areas in the state like the Winston-Salem? In this article, our focus will be on the Winston-Salem real estate market trends and investment opportunities in 2020.
Let’s learn more about Winston-Salem before discussing why you should consider investing in the Winston-Salem real estate market. The Winston-Salem area is home to around a quarter million people. The Winston-Salem real housing market includes just over one and a half million people when you take Greensboro and High Point into account.
This broader metro area is called the Piedmont Triad. In fact, the area is served by the Piedmont Triad International Airport. However, a large regional population isn’t reason enough to invest in a given area. It is important to analyze the market as a whole before deciding to buy, sell, or invest in a new property.
Is Winston-Salem going to be one of the best markets for real estate investing in 2020? Let’s take a deep look at the latest Winston-Salem housing market trends to come to a conclusion. We shall discuss some important statistics such as – market forecast, median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in Winston-Salem, North Carolina.
Winston-Salem Real Estate Market Forecast 2020
The real estate data from Zillow shows that the current median home value in Winston-Salem is $142,000. Winston-Salem is currently a seller’s market – which means that there are a lot of qualified buyers in Winston-Salem and not enough homes for sale in the market.
The home prices have risen by 8.6% over the last year. And looking forward into the coming year, the Winston-Salem real estate market forecast is that home prices will continue to rise by 5.1%.
Here is the Winston-Salem, NC real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 5.1% till Oct 2020.
The median list price per square foot in Winston-Salem is $112, which is lower than the Winston-Salem Metro average of $118. The median price of current listings in Winston-Salem is $192,990 and the median price of homes that have been sold out is $152,200. The median rent price in Winston-Salem is $1,245, which is lower than the Winston-Salem Metro median of $1,250.
Zillow reports that 13.2% of the listings in Winston-Salem had a price cut in Oct 2019, which is a good thing for buyers. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices.
Winston-Salem Housing Market Forecast 2019 – 2021
Here is a short and crisp Winston-Salem housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Winston-Salem is 86% and it is predicting a positive trend.
The LittleBigHomes.com estimates that the probability for rising home prices in Winston-Salem is 86% during this period. If this price forecast is correct, the Winston-Salem 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 Winston-Salem, NC Real Estate Market Forecast.
Winston-Salem Real Estate Market Trends
We shall now discuss some of the most recent housing trends in the Winston-Salem area. Trulia has currently 1,055 resale and new homes for sale in Winston-Salem, NC including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
Some of the most popular neighborhoods in Winston-Salem are Ardmore, Buena Vista, Country Club, South Fork, etc. Here you’ll find the maximum no. of homes for sale.
There are currently 29 homes for sale in Ardmore, Winston-Salem, NC. The home prices in Ardmore range from $8.5K – $519K. Additionally, there are 20 rental properties for sale on Trulia and their rent price ranges from $800 – $1.75K. The schools are rated between 3/10 – 7/10.
In addition to single and multi-family housing, the Ardmore Historic District contains a collection of historic commercial and institutional buildings including several churches.
There are currently 29 homes for sale in Buena Vista, Winston-Salem, NC. The home prices in Buena Vista range from $225K – $1.8M. Additionally, there are 8 rental properties for sale and their rent prices range from $695 – $2.5K. The schools in this neighborhood are rated between 4/10 – 8/10.
In the past month, 317 homes have been sold in Winston-Salem, NC as reported by Redfin.com. In addition to houses in Winston-Salem, there were also 46 condos, 80 townhouses, and 4 multi-family units for sale in Winston-Salem last month. The median price per square foot in Winston-Salem has increased by 6.5% over the past year.
According to their statistics, the Winston-Salem housing market is very competitive. The average sale price of a home in Winston-Salem was $180K last month, up 12.1% since last year. The average sale price per square foot in Winston-Salem is $98, up 6.5% since last year. A hot listing in Winston-Salem can sell for around list price and go pending in around 22 days.
Here is the latest Winston-Salem housing market data for the month of Nov 2019 from Redfin.com. The sale to list price ratio shows us that it was seller’s market in the past month.
Winston-Salem Housing Market Trends in Nov 2019
|Median List Price||$225,000|
|Avg. Sale / List||97.5%|
|Median List $/Sq Ft||$111|
|Avg. Number of Offers||1|
|Median Sale Price||$180,000|
|Avg. Down Payment||42.3%|
|Median Sale $/Sq Ft||$98|
|Number of Homes Sold||317|
There are 1,180 homes for sale in Winston-Salem, NC on Realtor.com. The new listed homes for sale are 90. The asking price of single family homes can start from $21,800 and can go up to $2.65M for a luxury property located in Reynolda Park neighborhood in the city of Winston Salem, NC.
There are currently 314 rental properties in Winston-Salem, and their rent prices range from $400 to $3.2K per month. The median rent in Winston-Salem is $950. There are 205 new construction homes for sale in Winston-Salem within a price range of $120,000 to $1.2M.
According to their statistics, in October 2019, the Winston Salem housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90%. In Winston-Salem, the sellers have held good leverage in these negotiations in the past month.
On an average, they could sold homes for 98.55% of the asking price (just 1.45% below asking price). A seller would always prefer scenarios which can yield a ratio of 100% or higher.
In October 2019, the median list price of homes in Winston Salem, NC was $189.9K, trending up 13.1% year-over-year. The median listing price per square foot was $104. The median sale price was $160K.
On average, homes in Winston Salem, NC sell after 52 days on the market. The trend for median days on market in Winston Salem, NC has gone up since last month, and slightly down since last year.
The median list price in Winston-Salem is $259,900 on Movoto.com. The median list price in Winston Salem went down 1% from November to December. Winston Salem's home resale inventories is 598, which decreased 3 percent since November 2019.
The median list price per square foot in Winston Salem is $76. In November 2019 it was $90. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in December.
Winston-Salem, NC Single & Multi-Homes Statistics
Following the real estate market decline in 2007 in the U.S., single family rental homes 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 properties 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.
U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.
The average sales price of new homes sold in the U.S. fell by 1.6% year-over-year in July 2019, to $388,000, according to the U.S. Census Bureau. In fact, the median sales price of new homes sold fell by 4.8% to $312,800 over the same period.
For existing homes, the median price was up by 4.3% to $280,800 in July 2019 from a year earlier, according to the National Association of Realtors. July’s price increase marks the 89th consecutive month of year-over-year gains. Demand remains robust. During the year to July 2019, new and existing home sales increased by 4.3% and 2.5%, respectively.
As per the real estate company called Neigborhoodscout.com, the median house price in Winston Salem, NC is $157,370, which indicates that home prices in Winston Salem are near the national average for all cities and towns in the United States.
Single-family detached homes are the single most common housing type in Winston Salem, accounting for 61.94% of the city’s housing units. Three and four bedroom single family detached homes are the most common housing units in Winston Salem.
Other types of housing that are prevalent in Winston Salem include large apartment complexes, duplexes, homes converted to apartments and a few row houses. Winston Salem has a mixture of owner-occupied and renter-occupied housing.
After the great recession of 2008, renting a home has increased exponentially across the nation. There are currently over 136.57 million housing units in the U.S.
In 2018, the total number of homeowner households hit an all-time high of 76.2 million. 36.6% of households rent their homes and 64.4% buy their homes (2018 U.S. Census Bureau).
Currently, there are 572 single family homes for sale in Winston Salem, NC on Zillow. Additionally, there are 252 single family homes for rent in Winston Salem, NC.
Under potential listings, there are about 8 Foreclosed and 94 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Winston-Salem, NC Foreclosures And Bank Owned Homes Statistics
As per Winston-Salem foreclosure data by Zillow, in Winston-Salem 0.8 homes are foreclosed (per 10,000). This is lower than the Winston-Salem Metro value of 0.9 and also lower than the national value of 1.2. The percent of delinquent mortgages in Winston-Salem is 0.9%, 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 Winston-Salem homeowners underwater on their mortgage is 9.7%, which is higher than Winston-Salem Metro at 7.9%.
|Total No. of Foreclosures in Winston-Salem||361 (RealtyTrac)|
|Homes for Sale in Winston-Salem||401|
|Median List Price||$170,000 (3% drop vs Sep 2018)|
There are currently 361 properties in Winston Salem, NC that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 401.
In October 2019, the number of properties that received a foreclosure filing in Winston Salem, NC was 3% higher than the previous month and 29% lower than the same time last year.
Best Neighborhoods to Invest in Winston-Salem Real Estate
If you are looking to invest in the Winston-Salem real estate, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability.
Desirability brings demand. Demand would raise the price of your Winston-Salem rental real estate and you should be able flip it for a lump sum profit. When looking to invest in Winston-Salem real estate, you need to find places where the expected property appreciation forecast is positive.
The running costs for owning and managing an Winston-Salem rental property should be low. The neighborhoods in Winston-Salem 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.
Winston-Salem is a not walkable city in Forsyth County. There are 47 elementary schools, 25 middle schools, 24 high schools and 19 private & charter schools in Winston-Salem. There are 158 neighborhoods in Winston Salem.
Some of the best neighborhoods in Winston Salem, North Carolina are Ardmore, Buena Vista, South Fork, Downtown Winston-Salem, West End, Winston Lake Estates, Washington Park, Clemmons, New Sherwood Forest, Ashford, West Highlands, Peace Haven, and Wake Forest University.
Buena Vista has a median listing price of $629K, making it the most expensive neighborhood. Easton is the most affordable neighborhood in Winston-Salem, with a median listing price of $28.9K. Here are the best neighborhoods to invest in Winston-Salem real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
|2||Patterson Ave / E Northwest Blvd|
|4||Salem / Salem College|
|5||Peters Creek Pky / W Academy St|
|9||Ardmore / Hanes|
|10||E 12Th St / File St|
How is Real Estate Investing in Winston-Salem?
Investing in good real estate markets is touted as a great way to become wealthy. Is Winston-Salem a Good Place To Invest in Real Estate? Many real estate investors have asked themselves if buying a property in Winston-Salem is good investment?
If you want to find out whether Winston-Salem real estate is a good investment or not, you need to drill deeper into local trends. The Winston-Salem real estate trends will tell what the market holds for the year 2020.
We have already discussed the Winston-Salem housing market forecast for 2020. Purchasing an investment property in Winston-Salem 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 Winston-Salem 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 Winston-Salem 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 Winston-Salem real estate market which can help investors who are keen to buy an investment property in this city. We’ll focus on real reasons to invest in the Winston-Salem real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.
1. The Affordable Winston-Salem Real Estate Market
The Winston-Salem real estate market is relatively affordable by national standards. That makes Winston-Salem real estate investment possible for those who couldn’t afford to buy property in hotter real estate markets. The average home price in the Winston-Salem housing market is roughly 160,000 dollars. For comparison, the national average is around 220,000 dollars.
2. The Economics That Drive People to Rent in Winston-Salem
Around two thirds of the national population owns rather than rents. However, in the Winston-Salem housing market, just over half own their home despite the relatively low cost of living and real estate. This is partially due to the relatively high cost of real estate relative to the average pay rate. Average incomes are around 25,000 dollars a year, well below the national average of 29K.
3. The Population Growth Rate
One point in favor of Winston-Salem real estate investment is the area’s steady growth. The Winston-Salem metro area is smaller than Charlotte and Durham, but it is seeing roughly one percent annual growth. This causes steady appreciation in the Winston-Salem real estate market, but it isn’t hot enough to trigger a building boom that will cause home prices to drop.
4. The Strong Real Estate Appreciation
The Winston-Salem housing market saw nearly 9 percent appreciation in 2019. Growth is expected to hit 5 percent in 2020. The housing market sits in the sweet spot of moderately strong demand without getting so hot that builders rush to the area to profit.
They can earn more money using the same materials and people building luxury homes in the Research Triangle area. The Winston-Salem real estate market sees homes close in around 33 days, while homes considered affordable or highly desirable close in three weeks.
These tend to be properties in walking distance of the colleges or the city’s walkable downtown. On the flipside, almost no properties sell for less than their asking price. There really aren’t any bad areas in the Winston-Salem property market.
5. The Downtown Poised for Growth
The Winston-Salem downtown area is unusual for being both friendly to pedestrians and bikers. Because of the multiple colleges in the area, the city offers far better public transit than similarly sized cities, as well. That plus its incredible affordability for a downtown area makes it perfect for Millennials who want the best of all worlds.
Combine this with the large existing population of college students, and we can expect the Winston-Salem metro area to see long-term population growth as young adults remain in the area after graduation and start their families here. That’s why around two billion dollars has been invested in downtown commercial and residential development since 2000.
6. The Grey Wave
Forget retiring in Florida. It costs too much in terms of rent and insurance, and you run the risk of being hit with a hurricane. The Winston-Salem housing market offers equally temperate weather and much cheaper housing. The local universities offer cultural enrichment at a reasonable price.
This is why Winston-Salem was ranked one of the ten best places to retire in 2012. And the Grey Wave of Baby Boomer retirements is going to lead to a greater influx of retirees in the near future.
7. The Student Market
One strong Winston-Salem real estate investment opportunity is the student market. There are several colleges and other educational institutions in the Winston-Salem area. Winston Salem State University is one. It is home to around five thousand scholars. Wake Forest University is another.
This private university is home to around eight thousand students and nearly a thousand staff. This large population of renters drives up rental rates in the Winston-Salem real estate market.
8. The Strong Economy
The strong local economy is a good reason to consider Winston-Salem real estate investment. The local economy is seeing 1.6 percent job growth per year. It will have better than average job growth for the next ten years. This is one reason why people are moving to the Winston-Salem housing market. More importantly, because the city’s economy isn’t tied to a tech bubble or government growth, it won’t suffer a collapse if one industry busts, either.
9. The Favorable Legal Climate
North Carolina is definitely friendly to property owners. The maximum security deposit is two months’ rent, twice as high as the limit many other states. You have a month to give the money back unless it takes additional time to clean up and assess the damage.
The returned money is the amount left over after accounting for the costs of re-renting, general repairs, unpaid utilities, and the cost of removing and storing their belongings. If someone doesn’t pay their rent, you can terminate the lease in ten days. Other states give someone up to a month to catch up on late rent.
10. The Favorable Tax Laws
The state of North Carolina offers slightly lower taxes on average. There’s a low 2.5 percent corporate income tax. Sales taxes are in line with the national average. The state’s average property tax rate is 0.81 percent of the property’s value, well below the national average of 1.1 percent. The savings are compounded by the low overall price of property in the Winston-Salem housing market.
Investing in Winston-Salem Real Estate: The Conclusion
Maybe, you have done a bit of real estate investing in Winston-Salem 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.
The Winston-Salem metro area offers a steady, slowly appreciating real estate market poised for long-term growth. Combine this with a tax and legal climate friendly to investors, and it is worth considering.
A good cash flow from Winston-Salem 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 Winston-Salem real estate investment opportunity would be a key to your success. If you invest wisely in Winston-Salem rental 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 in Winston-Salem you should focus on neighborhoods with relatively high population density, employment growth and strong appreciation potential.
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 locally in the Winston-Salem real estate market.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Winston-Salem 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 Best Places To Invest in Real Estate in 2020
The other best place to invest in real estate is Columbia, South Carolina. The Columbia SC housing market offers low cost properties, decent rental rates, and a stable economy. A number of factors limit the growth of housing stock while demand remains high. This makes it an excellent opportunity for investors.
The Columbia SC housing market is bolstered by a diversified economy. The city is a regional services provider in addition to being the state capital. That is one reason why it is the regional educational center.
Another good market to choose for real estate investment is Waco, Texas. The Waco real estate market has a number of points in its favor. It isn’t just a college town; it is a stable, steadily appreciating real estate market that offers high returns despite low property prices.
About 40 percent of Waco’s residents rent. While that isn’t much higher than the national average, it is surprisingly high given the relatively affordable real estate. One factor is the relatively low paying jobs in the area. The median household income is 40,000 dollars a year, roughly 20K below the state average.
Per capita income is around 22,000 dollars a year. Factor in the average 1000 dollar a month rent, and many who live here simply can’t afford to buy a home. These conditions promise good returns & cash flow for who those who'd like to invest in the Waco rental real estate.
*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.
About Winston Salem
Favorable legal climate
The affordable real estate market
Economics that drive renters
Downtown poised for growth
Updated Market Prices, Trends & Forecasts