It should come at no surprise that the Corpus Christi real estate market is one of the hottest in the nation. It has seen a resurgence in the real estate market on par with that of Austin, Seattle and San Diego. For all intents and purposes, the Corpus Christi real estate investing market should see a lot of activity.
With an appreciation rate that is nearly triple that of the national average, the Corpus Christi real estate market has found it easy to remove itself from the previous recession. At 13.8 percent, appreciation rates have helped prices grow for three consecutive years. That said, the current median home price in Corpus Christi is $173,900. The national average, on the other hand, is $208,067; and only appreciating at a rate of 5.7 percent. So while prices are lower than the national average, they are considerably more affordable – a factor that will favor both buyers and the Corpus Christi real estate investing market.
According to RealtyTrac, the Corpus Christi real estate market has about 263 properties in some state of foreclosure. Even with high rates of appreciation, these homes are either at risk of being repossessed, have already been repossessed, or are scheduled to be placed up for auction. Today’s foreclosures are actually up 25 percent from the previous year. The Corpus Christi real estate investing market is expected to take full advantage of these properties. In fact, the discounts they offer will make Corpus Christi real estate investing that much more attractive.
The average sales price of a non-distressed property in the Corpus Christi real estate market is $40,000; according to RealtyTrac. However, distressed properties, or those that have been foreclosed on, come at a discounted rate. The Corpus Christi real estate investing market will be pleased to know that distressed properties are selling for much less.
The overwhelming majority of foreclosed homes that Corpus Christi real estate investing will take advantage of are scheduled to be placed up for auction. In fact, 96.9 percent of all the area’s foreclosures are auction homes. The remaining 3.1 percent are bank-owned, and sitting on their books as non-performing loans. Either scenario represents a great opportunity for Corpus Christi real estate investing.
In addition to foreclosures, those interested in Corpus Christi real estate investing should look towards the area’s most popular neighborhoods. According to Trulia, South Side and Bay Area are the most popular neighborhoods in the city, with average listing prices of $235,220 and $332,077.
The Corpus Christi housing market has been the beneficiary of significant appreciation. Homeowners have, therefore, seen equity return to the area. Both homeowners and Corpus Christi real estate investors can take advantage of the current momentum. The following highlights how much equity has been gained relative to the year of the home’s purchase:
- Homes purchased in the Corpus Christi housing market one year ago have appreciated, on average, by $23,430. The national average was $14,170 over the same period.
- Homes purchased in the Corpus Christi housing market three years ago have appreciated, on average, by $44,895. The national average was $53,857 over the same period.
- Homes purchased in the Corpus Christi housing market five years ago have appreciated, on average, by $47,465. The national average was $48,036 over the same period.
- Homes purchased in the Corpus Christi housing market seven years ago have appreciated, on average, by $48,742. The national average was $13,870 over the same period.
- Homes purchased in the Corpus Christi housing market nine years ago have appreciated, on average, by $59,353. The national average actually depreciated by as much as $2,822 over the same period.
Any healthy market will have a strong balance between market indicators and local economic factors. Corpus Christi is no exception. If anything, the Corpus Christ housing market is more than healthy. The job sector looks to be more than capable of keeping up with home price gains. The city has an unemployment rate of 4.3 percent – well below the national average of 5.6 percent. Today’s unemployment rate even represents a 1.2 percent improvement over the previous year. The real impressive statistic, however, is the area’s job growth rate. At 3.3 percent, it is well above the 1.9 percent national average. Local employment is very strong and looks like it will keep trending upwards. Naval Air Station Corpus Christi provides the most jobs in the city with 4,400 civilians on its payroll. Overall, many of the city’s workers are employed in the government, service, and wholesale and retail trade sectors.
Despite everything that we have already gone over, the Corpus Christi housing market still has one impressive factor working in its favor: affordability. Even with an appreciation rate of 13.8 percent, Corpus Christi real estate is more affordable than most other areas in the country. Not only that, but it is also historically strong compared to previous years. That said, homeowners in the Corpus Christi housing market are used to spending about 8.7 percent of their monthly income on mortgage payments. The average homeowner across the U.S., however, spends approximately 15.1 percent of their income on mortgage obligations every month. Even rent is more affordable here than in other cities. For example, a median one-bedroom apartment in San Francisco is almost twice as expensive as the median monthly rent in Corpus Christi.
As recently as the first quarter of this year, Corpus Christi was rated as one of the 10 best cities for saving money. Saving money is more realistic in Corpus Christi because it offers opportunity, low cost of living and enhanced quality of life. Residents can take advantage of the relatively stable job market, low transportation costs and low housing costs to put money. This will catapult the Corpus Christi housing market to the top of the list for Millennials and first-time buyers. Wallet Hub even placed Corpus Christi at number 6 on this year’s “Best Cities To Start A Career” list.
These factors, and many more just like them, have combined to make the Corpus Christi real estate market one of the best in the country.
Corpus Christi Real Estate Market Summary:
- Current Median Home Price: $173,900
- 1-Year Appreciation Rate: 13.8%
- Unemployment Rate: 4.3%
- 1-Year Job Growth Rate: 3.3%
- Population: 316,381
- Median Household Income: $48,688