The Augusta real estate market has become the beneficiary of several positive economic indicators. Stability in the economy, historically low interest rates, job security, and relative affordability have all culminated in an incredibly active housing market. Despite nearly seven consecutive years of appreciation, median home values are still incredibly affordable (at least compared to nearby big cities). Not only that, but demand remains persistent in the face of rising prices. As a result, Augusta’s real estate investing market has begun to heat up. Real estate in Augusta is currently rewarding investors with attractive price tags and plenty of upside. In fact, local investors capitalized on a gross ROI flipping profit of more than 100 percent as recently as the second quarter of this year. Very few markets of equal size seem capable of offering the same potential as the Augusta real estate market.
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Median Home Price Augusta
For the better part of a decade, the Augusta real estate market has seen its median home value increase in conjunction with the national average. Since the end of 2013, in fact, prices have maintained an upward momentum. In the last year, alone, real estate in Augusta appreciated 5.3%. As they currently stand, however, median home values in Augusta are now $155,400, according to Zillow’s Home Value Index. Though increases are expected to temper in the coming year, low inventory levels and increasing demand should increase median home values up at least an additional 2.8%.
Despite recent appreciation rates, it’s still more affordable to buy a home in most parts of Augusta than to rent one long term. With a price-to-rent ratio around 11.26 (divide the median home value by the city’s annual rent), it’s actually considerably cheaper to own a home than to rent one in most parts of the city. As a result, demand has increased in spite of insufficient inventory levels.
Augusta Foreclosure Statistics
According to RealtyTrac, a real estate information company known for its foreclosed and defaulted property information, the Augusta real estate market is home to approximately 255 distressed homes. “In August, the number of properties that received a foreclosure filing in Augusta, GA was 33% lower than the previous month and 6% lower than the same time last year, according to the real estate data company.
All things considered, the Augusta housing market has been able to maintain a relatively low foreclosure rate, with about one in every 1,698 homes falling under one of three distressed categories: default, auction or bank owned. It is worth noting, however, that the majority of distressed homes in Augusta are either up for auction, or will be sometime in the near future. Up year-over-year, auction homes now constitute about 68% of Augusta’s distressed market. As a result, Augusta real estate investors are advised to check local auctions to increase their odds of acquiring a distressed property at a discount. Outside of auctions, local investors may want to look in the following zip codes, as they currently have the highest distribution of foreclosures in Augusta:
30906: 1 in every 854 homes is currently distressed
30901: 1 in every 1,698 homes is currently distressed
30904: 1 in every 2,502 homes is currently distressed
30909: 1 in every 11,078 homes is currently distressed
Augusta Real Estate Investing
Augusta’s strengthening economy, in conjunction with relatively affordable home prices, has created a real estate market which is highly conducive to activity. If for nothing else, more people are inclined to buy in a city where purchasing is more affordable than renting. The added demand, however, has made Augusta real estate investing more attractive than ever. Local investors have realized incredible returns in recent history. In fact, investing in Augusta has resulted in better returns than most neighboring cities.
“Among the 149 metropolitan statistical areas analyzed in the report with at least 50 home flips completed in Q2 2019, five had gross ROI flipping profits of more than 100 percent: Scranton, PA (134 percent); Pittsburgh, PA (132.5 percent); Reading, PA (129.3 percent); Kingsport, TN (104.1 percent) and Augusta, GA (101.1 percent),” according to Attom Data Solutions. Few smaller cities, for that matter, can even come close to matching the returns recently seen in Augusta.
Augusta Real Estate Market Summary
The Augusta real estate market has drawn more interest than busier, neighboring cities thanks to affordable housing prices. That, combined with a strong economy, has made local real estate a commodity. More and more people are looking to buy in the area, which bodes incredibly well for real estate investors. Not only is it possible to acquire affordable deals, but few comparable cities appear to have better profit margins than Augusta. For the time being, real estate in Augusta looks to be a good investment.
Have you thought about investing in the Augusta real estate market? If so, what are you waiting for? We would love to know your thoughts on real estate in Augusta in the comments below.
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