Blog

Beaumont, TX: Real Estate Market & Trends 2016

Published on Friday - February 10, 2017

The Beaumont real estate market remained on the path to recovery in 2016. Home prices and appreciation rates, although below the national average, made steady improvements in the first-half of the year. Positive progress appears to be an ongoing trend for Beaumont real estate, as gains in the last three years have extended the trend of positive price growth since the recession. Additionally, home equity fared well in comparison to the rest of the country, helping to benefit both homeowners and investors alike.

The Beaumont real estate market also experienced a few setbacks in 2016. The local economy stumbled during the first six-months of the year, as unemployment and job-growth fared worse than the national average. The pace of new housing construction came to a screeching halt, which could impact the housing market, including home affordability, down the road. Conversely, the reduction in new housing construction should allow demand to catch up with inventory. Home affordability in Beaumont is among the lowest in the country, which bodes well for investment opportunities moving forward.

Beaumont, TX Real Estate Market Statistics:

Beaumont real estate investing

The Beaumont real estate market continued to achieve improvements in home appreciation during 2016. The first-half of the year experienced one-year and three-year appreciation rates of 2.1 percent and 5.3 percent for Beaumont real estate, up from the previous year. In comparison, the national average saw rates of 4.9 percent and 17.8 percent in the first-half of the year. For those considering Beaumont real estate investments, the following outlines appreciation gains from previous years:

  • Homes purchased in the Beaumont, TX housing market one year ago have appreciated, on average, by $5,319. The national average was $14,963 over the same period.
  • Homes purchased in the Beaumont, TX housing market three years ago have appreciated, on average, by $14,371. The national average was $46,878 over the same period.
  • Homes purchased in the Beaumont, TX housing market five years ago have appreciated, on average, by $26,778. The national average was $82,353 over the same period.
  • Homes purchased in the Beaumont, TX housing market seven years ago have appreciated, on average, by $20,122. The national average was $77,054 over the same period.
  • Homes purchased in the Beaumont, TX housing market nine years ago have appreciated, on average, by $31,697. The national average was $31,126 over the same period.

Along with appreciation rates, home equity is another component that should improve moving forward. Price appreciation and principle payments in the last three years have boosted total equity growth since the recession. Equity gains in the last nine years, although below the national average, have continued to produce positive gains, helping to turn up the heat on Beaumont real estate investing. Homeowners and investors experienced the largest gains in home equity in year nine, when homes appreciated by $31,697 compared to $31,126 by the national average.

Another element to consider for Beaumont real estate investors are foreclosures. The month of December experienced a total of 199 properties in some stage of foreclosure, according to RealtyTrac. The number of foreclosures is 44 percent lower than the previous month and 42 percent lower than the same period last year. Bank owned real estate also declined during December. REO properties in Beaumont decreased 35.7 percent compared to the previous month and 25 percent from the same period last year. While the number of foreclosures in Beaumont are down, they remain an excellent investment opportunity for future investors.

Beaumont, TX Real Estate Market Summary:

Beaumont real estate investments

  • Current Median Home Price: $143,500
  • 1-Year Appreciation Rate: 2.1%
  • 3-Year Appreciation Rate: 5.3%
  • Unemployment Rate: 6.9%
  • 1-Year Job Growth Rate: 0.1%
  • Population: 117,796
  • Median Household Income: $39,191

Beaumont, TX Real Estate Market (2016) — Q2 Updates:

Beaumont housing market

The Beaumont real estate market experienced decent gains in the second quarter of 2016. The median home prices was $143,500. In comparison to the national average, the median home price was $239,167. Although lower than the rest of the country, gains in the last three years have extended the trend of positive price growth since the recession.

Market factors influencing the Beaumont real estate market in the second quarter included the local economy and new housing construction. The unemployment and job-growth situation in Beaumont was worse than the national average. Unemployment reached 6.9 percent during the second quarter, while one-year job growth settled at 0.1 percent. In comparison, the national average had an unemployment rate of 4.9 percent and a one-year growth rate of 1.8 percent. That said, Beaumont’s employment growth is poor and needs to improve.

New housing construction also took a tumble in the second quarter. The level of construction in Beaumont was 16.5 percent below the long-term average, while single-family housing permits declined by 19.9 percent. However, reduced construction should limit new supply to the market, allowing demand to catch up with inventory more quickly. Home affordability, on the other hand, continued to excel. Homeowners paid 7.2 percent of their income to mortgage payments in the second quarter, compared to the national average of 15.8 percent. Home affordability for the Beaumont housing market is among the lowest in the nation.

Lastly, foreclosures are an element investors should think about when considering the Beaumont real estate market. There were 199 properties in some stage of foreclosure in the month of December, representing a 44 percent decline than the previous month and 42 percent less than the same period last year.

Looking ahead, the Beaumont real estate market is expected to see greater growth in the next 12 months than the rest of the U.S. According to the National Association of Realtors (NAR), home prices for Beaumont real estate are predicted to grow by 3.9 percent, compared to the national average of 3.6 percent.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

🔒 Your information is secure and never shared. By subscribing, you agree to receive blog updates and relevant offers by email. You can unsubscribe at any time.