The Beaumont real estate market – much like its Texas counterparts Austin, Houston and Dallas – managed to avoid the worst of the recession. Even amidst a national real estate market collapse, the city of Beaumont managed to exhibit equity appreciation and price growth. However, now – more than ever – Beaumont real estate market is expected to make great strides. With the state’s economy in full swing, Beaumont should meet, and exceed, any expectations. With unemployment levels being the chief concern, there is little to suggest Beaumont does not have a bright future. It really is a great time to consider Beaumont real estate investing.
The current median home price in the Beaumont real estate market is $133,300. The national average, on the other hand, is slightly over $200,000. At first glance, Beaumont real estate may appear much softer than the national pool, but I assure you that it is not. A closer look will reveal a strong local market. Home prices in the Texas city have appreciated by as much as 4.1 percent int he last year, and an impressive 8.7 percent over the last 36 months. While the rest of the state and the country were hit hard by the recession, Beaumont real estate managed to hold the fort. The Texas city was not subjected to volatile shifts in prices that the rest of the U.S. had become accustomed to.
Not only has Beaumont real estate remained strong, it has shown great equity appreciation during the last seven years. Gains are below national averages, but Beaumont did not dip as low as the rest of the country. The following highlights how much equity has been gained relative to the year of purchase:
- Homes purchased in the Beaumont housing market one year ago have appreciated by an average of $7,235. The national average, on the other hand, increased $15,753.
- Homes purchased in the Beaumont housing market three years ago have appreciated by an average of $16,919. The national average, on the other hand, increased $53,565.
- Homes purchased in the Beaumont housing market five years ago have appreciated by an average of $15,811. The national average, on the other hand, increased $47,444.
- Homes purchased in the Beaumont housing market seven years ago have appreciated by an average of $22,345. The national average, on the other hand, increased $17,200.
- Homes purchased in the Beaumont housing market nine years ago have appreciated by an average of $46,488. The national average, on the other hand, decreased by a modest $100.
While growth in the Beaumont real estate market may not look as impressive as the national level, it is important to note where the city is coming from. Prices did not drop as far as the rest of the country during the recession and, therefore, didn’t have to climb as high. In realty, the ratio gained is very impressive. To paint a clearer picture, homes that were purchased in the Beaumont housing market in 2005 (the national price peak) have gained $57,235 in equity. The average for the rest of the country is just over $16,000. Again, this region has shown strong, steady gains. Beaumont real estate investing should continue to benefit from healthy conditions.
The economic outlook for Beaumont, and Texas in general, looks promising. The city added 4,600 new jobs last month, up from 3,500 the previous month. The current unemployment rate for the area, however, is 6.2 percent, which is higher than the national average (5.5%). While high, Beaumont’s unemployment rate was 2.4 percent higher just one year ago. In reality, a lot of improvement has been made in a short period of time. Another promising trend is with the number of new jobs that have been created. Local job growth is currently 4.7 percent, which far exceeds the national average. With jobs growing at a strong clip, any unemployment concerns should be alleviated in the near future.
The economic index for the state of Texas stood at 5.7 percent last month. This number was much higher than the national average of 3.5 percent. Over the last 36 months, Texas grew at a rate of 14.8 percent, while the rest of the country only grew at a rate of 9.6 percent. This indicates that Texas’s economy is thriving, and Beaumont is growing with it. The level of local real estate supply and demand is all the proof you need.
One of the reasons that Beaumont real estate has remained attractive to homebuyers and investors is its affordability. The monthly mortgage payment to income ratio for Beaumont stood at 6.9 percent last quarter. This number is much lower than the national average of 14.3 percent. That means it is much more affordable to own a home in the Beaumont housing market than most markets across the country. This high level of affordability has directly impacted the low number of foreclosures to the market.
According to RealtyTrac, the Beaumont real estate market has about 87 homes in some state of foreclosure (default, auction or bank-owned). While low by national standards, distressed properties in this area have increased 129 percent since last year. In the last month alone, Beaumont foreclosures have jumped 96 percent. Of course, these numbers support Beaumont real estate investing. Savvy investors should recognize these properties as potential deals. In fact, the average distressed home has a sales price of $70,700, which is much less than non-distressed properties. The Beaumont real estate investing community should be able to take advantage of these spreads.
Over the last month, the number of total listings is down and the average list price is up. List price does not always indicate a higher sales price, but it does represent demand for an area. The most popular areas inside Beaumont over the last 30 days include Lumberton, Silsbee and Kountze. In addition to distressed homes, Beaumont real estate investing will rely heavily on these neighborhoods.
The Beaumont real estate market is poised for strong growth in both the short and long term. Unemployment is on the decline and job growth is on the rise. The area is not hampered with a massive amount of foreclosure inventory like many other markets across the country. New home permits are at a record pace, and the area is highly affordable. If you put all of these things together, you have a very attractive real estate market. One that has proven that it could stand the test of time and will not be impacted by negative national trends.
Beaumont Real Estate Market Summary:
- Current Median Home Price: $133,300
- 1-Year Appreciation Rate: 4.1%
- Unemployment Rate: 6.2%
- 1-Year Job Growth Rate: 4.7%
- Population: 117,796
- Median Household Income: $45,019