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South Bend, IN: Real Estate Market & Trends 2016

The South Bend real estate market continues to make progress in 2016. Home prices are up and continue to grow relative to last year, as appreciation rates rebounded during the first six months of the year. Home equity gains have also improved, benefiting homeowners and investors alike. Gains in the last three years have extended the trend of positive price growth since the recession, despite lower prices in comparison to the national average.

South Bend was backed by a strong local economy in the first-half, and an even stronger home affordability rate. Furthermore, the South Bend real estate market should remain a hot commodity, as the trend for growth is expected to continue in the second-half.

South Bend, IN Real Estate Market Statistics:

South Bend real estate investing

Home appreciation was a bright spot for South Bend real estate in 2016. One-year appreciation was 2.3 percent during the second quarter, while three-year rates increased to 17.8 percent. In comparison, the national average achieved one-year and three year rates of 4.9 and 17.8 percent. A combination of strong appreciation rates paired with low home prices should only further create South Bend real estate investing opportunities moving forward. For those considering South Bend real estate investments, the following highlights appreciation gains in previous years:

  • Homes purchased in the South Bend housing market one year ago have appreciated, on average, by $4,666. The national average was $14,963 over the same period.
  • Homes purchased in the South Bend housing market three years ago have appreciated, on average, by $23,840. The national average was $46,878 over the same period.
  • Homes purchased in the South Bend housing market five years ago have appreciated, on average, by $42,297. The national average was $82,353 over the same period.
  • Homes purchased in the South Bend housing market seven years ago have appreciated, on average, by $43,376. The national average was $77,054 over the same period.
  • Homes purchased in the South Bend housing market nine years ago have appreciated, on average, by $39,852. The national average was $31,126 over the same period.

South Bend real estate investments continued to see moderate gains in terms of home equity during the second quarter. Price appreciation and principle payments in the last three years have boosted total equity growth for the South Bend real estate market. Although below the national average, gains have continued to rise in the last nine years. Homes purchased one year ago have appreciated, on average, by $4,666, while homes purchased nine years ago have earn roughly $39,852 in equity.

From an investor’s perspective, a lot can be said about the number of foreclosures in a particular market. According to RealtyTrac, there were 223 properties in South Bend in some stage of foreclosure during the month of October. This represents a 14 percent decline from the previous month, and is 47 percent lower than the same period last year. In addition, the number of bank owned real estate (REO) went down, as REO properties fell 36.4 percent compared to last month and 12.5 percent for the year.

South Bend, IN Real Estate Market Summary:

South Bend real estate investments

  • Current Median Home Price: $121,800
  • 1-Year Appreciation Rate: 2.3%
  • 3-Year Appreciation Rate: 17.8%
  • Unemployment Rate: 4.7%
  • 1-Year Job Growth Rate: 2.7%
  • Population: 100,886
  • Median Household Income: $34,656

South Bend, IN Real Estate Market (2016) — Q2 Updates:

South Bend real estate

The median home price for the South Bend real estate market was $121,800 during the second quarter, with one-year and three-year appreciation rates of 2.3 and 17.8 percent respectively. Prices have grown relative to last year, as gains in the last three years have extended the trend of positive price growth since the recession. Additionally, price appreciation and principle payments in the last three years have boosted total equity growth.

Growth in the South Bend real estate market can be contributed to an improving economy. Unemployment in South Bend is better than the national average and improving. The unemployment rate was 4.7 percent during the second quarter, compared to the 4.9 percent achieved by the national average. Job growth also held up and is on an upward trend. One-year job growth reached 2.7 percent during the second quarter, compared to the rest of the country at 1.9 percent. Local employment growth is strong and the trend should continue in the second-half.

Additional factors impacting the South Bend housing market include home affordability and new housing construction. Homeowners paid 6.1 percent of their income to mortgage payments during the second quarter, whereas the national average paid 15.8 percent. Home affordability has traditionally been 7.1 percent for South Bend, signaling an improvement in the second quarter. The South Bend housing market has historically been among the most affordable in the country, but the trend could change course in coming years. The current rate of construction is below the long-term average, while the rate of single-family housing permits declined 20.2 percent in the second quarter. Although construction in South Bend is down from last year, it appears to have bottomed.

Lastly, the rate of foreclosures in South Bend should be on the radar for real estate investors. Although low in comparison to other markets–and continuing to fall, foreclosures present a unique investment opportunity from an investor standpoint. With rates for new housing construction on the decline, housing affordability could soon be rising which would ultimately benefit investors with rental properties.

Looking forward, the South Bend real estate market is expected to see moderate growth in the next 12 months. According to the National Association of Realtors (NAR), South Bend is predicted to to see weaker price growth in the next 12 months compared to the rest of the U.S. Home prices for South Bend real estate are forecasted to grow by 3.3 percent, compared to the national average of 3.6 percent. Although lower than the national average, the South Bend real estate market continues to make positive strides in 2016.

*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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