Considering what tax and landlord-tenant laws look like, you may be looking to make your next real estate market investment in TX. Corpus Christi is one of the cities that you may have your eyes on in this regard, and you'd like to know what the landscape looks like before you buy into it.
If that's the case, you're in the right place. The idea here is to go through several concepts, trends, statistics, and more that will help you to understand what you're dealing with if you want to go the Corpus Christi route.
Note that it helps to think about the kind of rental property you're interested in too as well as your goals, financial situation, and the overall state of the economy.
This isn't just a question of, "how much does a house in Corpus Chisti, TX sell for?" Sure, that's a part of it, but there are also other terms that you need to understand, which can give you the full picture of the market.
First, there's inventory. This speaks to the number of commercial and residential units that are unsold. Typically, this will be expressed in the form of the number of months' supply available.
Median house prices are next. The idea here is to rank the sale costs of homes from highest to lowest and get the middle figure. While the median home price is not exactly what you may get a property for, it does give you a benchmark to wrap your head around.
You'll pick a period of review for median days on the market. The idea is to understand how many days listings tend to stay on the market during that same period.
Mortgage interest rate is one of the straightforward ones to understand. Lenders will charge a certain amount of interest on home loans. The housing market across the United States has been battling rates that have not been as high as they currently since the last two decades.
Home sold, as you'd expect, simply speaks to the number of properties that were sold during a given period.
Corpus Christi Housing Market Trends
Corpus Christi has 1,658 active home listings for sale currently. 112 new developments occurred. The median price in Corpus Christi is $319,900 as of April 2023.
By April 2022, the typical number of days on the market was 44. This number went up to 72 by April 2023, which indicates that listings are not being bought as quickly as before.
While 1,293 homes were sold in April 2022, the number in April 2023 was 788, which aligns with the fact that properties aren't selling as quickly as they did before.
What Factors Affect the Housing Market?
Whether it's comparing home values to the national average price, or stacking up Corpus Christi real estate market numbers against other cities, the shifts and differences you see don't come out of nowhere. Several factors contribute to the state of the market, which are covered below.
For obvious reasons, this is one of the biggest drivers of the way the housing market works. Some of the concepts here are manufacturing activity, employment ratio, prices of goods, GDP, etc. Purchasing power and willingness will heavily depend on what the landscape looks like here.
Using different common elements, you can group members of the population. Some of the commonly used attributes are age, income, employment, etc. This is an important piece of the puzzle considering there are often similar behaviors among subgroups that can help you to understand patterns even before they fully materialize.
The use of demographics makes it that much easier to understand the types of properties that will be in demand.
That's why whenever there are any significant changes to the country's demographic composition, you will often see an effect on the trends that make up a real estate market.
The government will put in rules and other requirements that can make the real estate market more or less attractive. For example, the taxation rules in Texas are way more attractive than they are in many other states, which would make buying a property more attractive.
Mortgage Interest Rates
The appreciation rates here have been nothing short of astounding. Even above-average earners are often having a hard time securing a mortgage. There is currently an inflation problem, and the Fed is using hiked rates to try to control the situation.
This means that the average home price per square foot continues to seem higher than it is because it costs so much more in interest to own the home.
Will the Corpus Christi Real Estate Market Crash?
By all indications, the Corpus Christi real estate market is expected to slow down, but there's no expectation for it to crash completely. Prices, for example, are predicted to fall, but it shouldn't be to the kind of extent that you would've seen with the Great Recession.
First, inventory is pretty low, and this is a trend that's expected to continue. Considering buyers are still in a position where they may find themselves bidding prices up, the demand hasn't fallen off yet for prices to decline and for inventory to improve.
Next, considering demographics such as millennials are in their prime buying years and there are other new entrants to the market consistently, the high demand and low inventory equation is reinforced.
Most homeowners today also have a significant amount of equity in their homes. With people now having such strong balance sheets, a foreclosure crisis threat is non-existent.
Finally, lending standards are way higher than they used to be almost two decades ago. Now, credit checks, background checks, etc. are mandatory, which means that only certain borrowers will even be able to access mortgages to begin with.
Corpus Christi Market Statistics
Compared to the national average, Corpus Christi has seen triple the home appreciation rate, which stands at 13.8%. This has translated to an upward trend in prices for three years in a row.
RealtyTrac indicates that there is some state of foreclosure applicable to 263 homes in the city. This means that the properties have either already been repossessed, are at risk of repossession, or are on their way to auction. This represents an increase of 25% in foreclosures from the prior year.
The average sale price of non-distressed properties in the city stands at $40,000, with a discount being applied for distressed properties.
Most foreclosed homes will end up at auction, with the rate for this standing at a staggering 96.9%. The rest are bank owned.
Market Predictions for Corpus Christi in 2023
According to experts, mortgage rates are expected to continue trending upward. There are geopolitical tensions, as well as a potential recession. Bear in mind that the inflation problem is still happening.
The Fed will likely continue to keep raising interest rates to combat the problem. Some experts believe that if the strategy successfully keeps inflation under control, mortgage rates could decline.
Home sales have been falling since there are so many people being priced out of the market. Should this trend continue, it means homes will go out of inventory even slower. This will not translate to the supply challenges being resolved immediately, but it would be a step in the right direction.
Affordability is not expected to change too much. While there may be a drop in home prices, it likely will not be enough to offset the interest rate problem. Mortgage payments are the problem and they're expected to remain high, which will make homes appear to be less affordable.
There's a lot to contend with as a potential real estate investor. If you want to buy a rental property in one of Corpus Christi's popular neighborhoods, the real cost could be prohibitive.
However, considering that the cost of living and housing are still below the national average, it could make for an attractive investment, especially since the rental market is attractive.
Frequently Asked Questions
Is Corpus Christi an Affordable Location?
Corpus Christi, like many places, has seen appreciation rates be a problem. However, it still falls below the national average, which makes it one of the more affordable options.
Why Invest in Corpus Christi?
With a lower cost of living, better landlord-tenant laws, and better tax options, Corpus Christi could be a lucrative long-term investment.
Is Corpus Christi a Seller's Market?
Currently, the city is more of a seller's market because of the supply shortage. This means that buyers sometimes have to bid upward to secure a deal.