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Bowling Green, KY: Real Estate Market & Trends 2016

One of the hotter real estate markets in the first-half of 2016 was Bowling Green, Kentucky. Home prices, while lower than the national average, continued to improve during the first six months of the year. Home appreciation fared even better, as the Bowling green real estate market enjoyed higher appreciation rates than the rest of the country. Furthermore, gains in the last three years have extended the trend of positive price growth since the recession. Together, the Bowling Green real estate market is shaping up into one of the more attractive investment areas in the country.

A number of market factors positively influenced the Bowling Green real estate market in 2016, but none more so than home affordability, new housing construction and the local economy. From an investor’s perspective, these components play a significant role in assessing investment opportunities in a market, as each has the potential to impact current and future growth. Along with one of the more affordable housing markets in the country, the Bowling Green real estate market also kept pace with the national average in terms of new housing construction and the local economy. Both segments improved during the first-half of the year, and the outlook moving forward remains positive.

Bowling Green, KY Real Estate Market Statistics:

Bowling Green housing market

The strength of the Bowling Green real estate market in 2016 belonged to home appreciation. One-year and three-year rates for Bowling Green real estate reached 5.6 percent and 18.7 percent during the first-half, whereas the national average experienced rates of 4.9 percent and 17.8 percent. The rise in home appreciation is expected to further investment opportunities down the line. For those considering Bowling Green real estate investments, the following highlights appreciation gains from previous years:

  • Homes purchased in the Bowling Green, KY housing market one year ago have appreciated, on average, by $10,888. The national average was $14,963 over the same period.
  • Homes purchased in the Bowling Green, KY housing market three years ago have appreciated, on average, by $32,150. The national average was $46,878 over the same period.
  • Homes purchased in the Bowling Green, KY housing market five years ago have appreciated, on average, by $46,247. The national average was $82,353 over the same period.
  • Homes purchased in the Bowling Green, KY housing market seven years ago have appreciated, on average, by $45,336. The national average was $77,054 over the same period.
  • Homes purchased in the Bowling Green, KY housing market nine years ago have appreciated, on average, by N/A. The national average was $31,126 over the same period.

Along with surging home prices and appreciation, the Bowling Green real estate market also experienced modest equity gains. Price appreciation and principle payments in the last three years have boosted total equity growth since the recession, helping to benefit Bowling Green real estate investors and homeowners alike. On average, homes purchased in Bowling Green in the past year have appreciated by $10,888, compared to the national average of $14,963. Homes purchased in year five achieved the largest total with equity gains reaching $46,247. As a result, the popularity in Bowling Green real estate investing is expected to heat up in the second-half of 2016 and beyond.

One real estate variable every investor needs to consider are foreclosures. These properties are unique in nature and offer immense upside, but only to those with the ability to recognize the right opportunity. According to RealtyTrac, there were 18 properties in some stage of foreclosure during the month of December, an increase of 50 percent from the previous month. The number of foreclosures was small in comparison to the rest of rest of the country, but investment opportunities continued to grow for the Bowling Green real estate market.

Bowling Green, KY Real Estate Market Summary:

Bowling Green real estate

  • Current Median Home Price: $159,100
  • 1-Year Appreciation Rate: 5.6%
  • 3-Year Appreciation Rate: 18.7%
  • Unemployment Rate: 4.7%
  • 1-Year Job Growth Rate: 2.2%
  • Population: 61,488
  • Median Household Income: $45,215

Bowling Green, KY Real Estate Market (2016) — Q2 Updates:

Bowling Green real estate investing

The Bowling Green real estate market fared exceptionally well in the second quarter of 2016. The median home price was $159,100 for Bowling Green real estate, with one-year and three-year appreciation rates of 5.6 percent and 18.7 percent respectively. In comparison to the national average, the median home prices was $239,167 with one-year and three-year rates of 4.9 percent and 17.8 percent. For homeowners and investors, gains in the last three years have extended the trend of positive price growth after the recession.

Factors helping to drive growth in the Bowling Green real estate market include the local economy, new housing construction and home affordability. During the second quarter, unemployment in Bowling Green was 4.7 percent compared to the national average of 4.9 percent. Job growth also fared well, as one-year growth reached 2.2 percent. That said, the local employment growth is strong compared to other markets, while unemployment is better than the national average and improving.

Home affordability is another element enhancing the Bowling housing market. Homeowners paid 9.6 percent of their income to mortgage payments during the second quarter, compared to the national average that paid 15.8 percent. As a result, the Bowling Green real estate market is among the most affordable in the country. Another factor influencing affordability is new housing construction. The construction level in Bowling Green was 53.6 percent above the long-term average, while single-family housing permits reached 24.2 percent during the second quarter. Construction is on the rise relative to last year, suggesting the local inventory has stabilized.

Looking forward, the Bowling Green real estate market is expected to see stronger price growth in the next 12 months than the rest of the U.S. According to the National Association of Realtors (NAR), home prices for Bowling Green real estate is predicted to grow by 4.4 percent, compared to the national average of 3.6 percent. That said, the Bowling Green real estate market remains one of the hottest markets in the country.

*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.

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