The Fort Wayne real estate market has been rebounding for the better part of 2016. The first-half of the year experienced improved home prices and appreciation rates, as prices in Fort Wayne real estate continue to grow from last year. Gains in total home equity also remain favorable for homeowners and investors. Rates continue to outpace the rest of the country, as price appreciation and principle payments in the last three years have boosted total equity growth since the recession.
Growth in the Fort Wayne real estate market can be attributed to a combination of factors, including the local economy, new housing construction and affordability. The second quarter witnessed subtle improvements to both job growth and unemployment, while new housing construction continues to grow above the national average. Additionally, the Fort Wayne housing market is among the most affordable markets in the country, which bodes well for homeowners, investors and renters. Moving forward, the Fort Wayne real estate market is expected to continue the trend in the second-half of 2016.
Fort Wayne, IN Real Estate Market Statistics:
The growing advantage Fort Wayne real estate has had over the competition remains appreciation. One-year and three-year appreciation rates were 8.1 percent and 17.3 percent during the second quarter, whereas the national average achieved rates of 4.9 percent and 17.8 percent respectively. Furthermore, gains in the last three years have extended the trend of positive price growth since the recession. For those considering Fort Wayne real estate investments, the following outlines appreciation gains in previous years:
- Homes purchased in the Fort Wayne, IN housing market one year ago have appreciated, on average, by $11,561. The national average was $14,963 over the same period.
- Homes purchased in the Fort Wayne, IN housing market three years ago have appreciated, on average, by $24,661. The national average was $46,878 over the same period.
- Homes purchased in the Fort Wayne, IN housing market five years ago have appreciated, on average, by $38,302. The national average was $82,353 over the same period.
- Homes purchased in the Fort Wayne, IN housing market seven years ago have appreciated, on average, by $44,190. The national average was $77,054 over the same period.
- Homes purchased in the Fort Wayne, IN housing market nine years ago have appreciated, on average, by $39,448. The national average was $31,126 over the same period.
Home equity gains for the Fort Wayne real estate market continue to steadily improve. Price appreciation and principle payments in the last three years have boosted total equity growth since the recession. Although still below the national average, the last nine years have experienced positive gains. The highest margin of equity being reached in year seven, when homes appreciated, on average, by $44,190. That said, investment activity in Fort Wayne is expected to heat up, as low home prices coupled with rising appreciation could spur major interest moving forward.
Another component to consider when investing in real estate is the foreclosure market. According to RealtyTrac, there were 606 properties in some stage of foreclosure during the month of November. This represents an astounding 765 percent increase compared to the previous month, and only a five percent decline than the same time last year. The number of bank-owned real estate properties (REO) also took a hit. The Fort Wayne real estate market experienced 52.9 percent less REO properties than the previous month and 33.3 percent less than the same time last year. For those considering Fort Wayne real estate investing opportunities, foreclosures may be an excellent option.
Fort Wayne, IN Real Estate Market Summary:
- Current Median Home Price: $128,400
- 1-Year Appreciation Rate: 8.1%
- 3-Year Appreciation Rate: 17.3%
- Unemployment Rate: 4.3%
- 1-Year Job Growth Rate: 1.7%
- Population: 256,496
- Median Household Income: $43,994
Fort Wayne, IN Real Estate Market (2016) — Q2 Updates:
While still below the national average, the Fort Wayne real estate market continues to make progress in 2016. The median home price was $128,400 during the second quarter, compared to the national average of $239,167. Home appreciation is also gaining ground, as one-year and three-year rates for Fort Wayne real estate were 8.1 percent and 17.3 percent respectively.
The appeal of Fort Wayne real estate is easy to see. Along with rising home prices, home affordability remains among the lowest in the nation. Homeowners paid 6.5 percent of their income to mortgage payments during the second quarter, versus the national average paying 15.8 percent. Home affordability is still improving in the Fort Wayne housing market, as this rate surpasses its historical average of 8.0 percent. One factor that could further benefit affordability is new housing construction. The current level of construction in Fort Wayne is 27.4 percent above the long-term average, while single-family housing permits reached 14.6 percent. In comparison, the national average saw single-family housing permits settle at 10.6 percent. Construction is on the rise relative to last year, which suggest that local inventory has stabilized.
The local economy was another benefactor of the Fort Wayne real estate market. Indiana’s economy was stronger than the nation’s in the first-half, as both unemployment and job growth fared well during the second quarter. The unemployment rate in Fort Wayne was 4.3 percent compared to the national average of 4.9 percent. As for job growth, employment has eased but remains positive. One-year job growth was 1.7 percent, as opposed 1.9 percent achieved by the rest of the country.
Foreclosures are another element to consider from an investor’s perspective. For Fort Wayne real estate investors, the number of properties in some stage of foreclosure reached 606 during the month of November. According to RealtyTrac, this represents a 765 percent increase from the previous month and a five percent decrease from the same time last year. Furthermore, the number of REO properties fell during the second quarter, as bank owned properties fell 52.9 percent compared to the previous month and 33.3 percent from the same time last year.
Looking forward, the Fort Wayne real estate market is forecasted to experience weaker price growth in the next 12 months. According to the National Association of Realtors (NAR), the Fort Wayne real estate market is predicted to grow by 3.3 percent, compared to the national average of 3.6 percent.
