Springfield is a pretty city in Western New England. In many things, this city represents most other cities across the nation. The recession hit the Springfield MO real estate, but it has pulled itself up and turned the table over the last 5 years. Growth in the city’s real estate market has been slowly going, but there are gains as well.
Springfield is trending in the right direction. It is rated as one of the best markets for renters in the United States based on a variety of factors such as affordability, good life quality, and rental market activities. This helps to explain why rents for a 3-bedroom home in the city have jumped by 28 percent from year to year. In this article, we will discuss more about the real estate Springfield MO.
Springfield, MO at a Glance
Springfield is located in Southwestern Missouri, along the Ozark Mountain Range, which is why it is nicknamed the Queen City of the Ozarks. This city is only a few hour drive from Tulsa, St. Louis, and Kansas City. Also nicknamed the Birthplace of Route 66, Springfield is a home to many libraries, museums, parks, and also historical monuments.
In this city, you can also find Lincoln Home National Historic Site, the home of the former president of the United States, Abraham Lincoln, which is still well-maintained. Springfield offers so many tourist attractions to visit and explore. For example, Washington Park Botanical Garden, Abraham Lincoln Presidential Library and Museum, and Thomas Rees Memorial Carillon.
For a small city of its size, Springfield offers a strong economy. The industry sectors that help the growth in this region are various, including tourism, education, manufacturing, and healthcare. Springfield is an energetic metropolitan area that has an expanding population and growing job market. Moreover, the Springfield MO cost of living is affordable, below the national average.
Real Estate Market in Springfield, MO
Springfield is ranked as one of the top 8 housing markets for real estate investment. Homes for sale Springfield MO may be undervalued compared to home price and historic income data, according to DoughRoller. This means that the rental properties in the Queen City of the Ozarks could give investors an extra bonus due to appreciation in addition to recurring cash flow.
Price appreciation has been slowly going, as it is said before. But positive gains are a sign that real estate investors and home buyers should expect future growth. This is a good sign for the Springfield real estate investing community. All the news for the Springfield real estate is not negative. For as much as foreclosures put the market at loss back in 2008, the city has stayed ahead of the curve. The real estate in Springfield is far below the national foreclosure rate in each of the last 7 years.
They also show historically strong figures in terms of affordability. The city’s monthly mortgage payment to income ratio is at 8.6 percent for the last quarter. This is well below the national average, which is at 14.3 percent. This level of affordability is essential for homebuyers when they consider where to live. The more affordable a market is, the greater the possibility buyers will find it appealing. Again, this is also good news for the real estate investing community of Springfield.
Real Estate Market Trends in Springfield, MO
The current median home price in Springfield real estate is $183,900. This represents a 2.7 percent increase in appreciation from the same time last year. While the increase is welcome, it is still far below the national average of 6.7 percent. National house values are now $203,867. For the last 36 months, the real estate market in Springfield has experienced gains of 12.3 percent, which is still good and below the national average of 28.8 percent.
The mortgage collapse hit the housing market in Springfield hard, making it lose an average of $18,000 in equity just 7 years ago. It had much farther to recover than most national markets. While price gains will not jump off the page, it seems that the market has been at the lowest and is continuing its ascent upwards.
Springfield homeowners and real estate investment gained an average of $6,507 in equity for the past 12 months. This is the first reduction in equity obtained over the past 5 years. This could be because of a rough winter and rising inventory that pulled the number down. Here are Springfield’s key market stats.
- Home values in Springfield have risen by 19.3 percent over the last year. While they have increased by nearly 70 percent over the past 5 years.
- Zillow Home Value Index for a house in the city is $190,080 based on market data through November 2021.
- According to the Greater Springfield Board of Realtors, the average sales price of a house in Springfield is $259,532 as of November 2021.
- According to the most recent report from Realtor.com, the median listing price of a single-family house in Springfield is $197,500 as of November 2021.
- Homes take around 27 days in the market from being listed to going under a contract.
- Months of inventory is 1.66, in which anything less than a 6-month supply indicates a lack of houses for sale Springfield MO.
- Of the 46 neighbourhoods in Springfield, lake Springfield is the most expensive one with an average home listing price of $324,900. While the most affordable neighbourhood in the city is Heart of Westside where the average listing price is $84,900.
The number of sold properties in the Springfield real estate market has decreased in each of the last 5 years. There were around 300 transactions in the second quarter of 2010 compared to just under 50 last quarter. This decline of inventory explains the slow growth of equity and median sales price numbers. The good thing is the current median list price is increasing 9 percent from last month so that things probably change.
Rough weather hit the real estate market in Springfield hard. And it probably takes longer than expected to get the traditional spring sales push. Currently, there are 645 properties in the city’s real estate market that are in some stages of foreclosures. This represents a 10 percent increase in the last year. The average sales price of non-distressed homes was $118,000.
The average sales price of foreclosure homes was $98,526, which is 17 percent lower than non-distressed home sales. So, real estate investors should find these very appealing.
Springfield, MO Real Estate Market Forecast
For those of you who are looking for properties for sale with great profits, Springfield can be a profitable property investment option. The median price of an average home in the city was $152,908 as of June 2022. A long-term gain is expected. It is predicted that the price of an average place in Springfield will be $183,446 by 2027.
For a 5-year investment, the profit is predicted to be around +19.97 percent, meaning that investing $100,000 in the Spring real estate market today will probably generate a profit of $119,970 by 2027. The real estate market prices in Springfield and its market environment have been in the bullish cycle in the past 36 months. A positive trend in the near future is expected. Therefore, purchasing a property in Springfield seems to be a profitable investment.
Flipping houses for a profit during a bullish cycle is always easier. However, it is always highly suggested to read up on optimal real estate investment strategies, especially if you are a newbie.
Renters’ Market in Springfield, MO
WalletHub ranks the housing market in Springfield as one of the best cities for renters. This is based on key criteria, including the quality of life, affordability, and rental market activities. Historically, this city has been rated as one of the top 10 cities with the largest monthly rent increases in the country, according to the Springfield News Leader. Springfield was also ranked 8th for the least expensive rents in the United States. This indicates the potential for future annual rent increases. Here are some stats.
- Rents in Springfield have soared by 28 percent from year to year.
- According to Zumper, the median rent for a 3-bedroom house in Springfield is $1,250 per month as of December 2021.
- Rents for a 3-bedroom home in the city have risen by more than 92 percent for the last 3 years.
- Most rental housing in Springfield rents for less than $1,300 per month.
- 52 percent of the occupied housing units in Springfield are renter-occupied households.
- The most expensive neighbourhoods in Springfields for renters include Phelps, Rountree Area, and Southeast Springfield. While the ones with the most affordable rents include Midtown, Webster Park-Shady Dell, and Walnut Street.
Population Growth in Springfield, MO
According to the most recent census, the Springfield MO population increased by 6 percent over the past decade, making the Springfield metropolitan area one of the fastest growing areas in Missouri. Suburban counties around Springfield have seen above average growth, with Christian Country, nearby Greene, and Taney counties posting the strongest annualized population increases. Below are some stats about the Springfield population growth.
- According to the US Census Bureau, Springfield is the 3rdlargest city in Missouri, with more than 169,000 residents and more than 462,000 people in the metropolitan area. The population of Springfield has grown by 6.1 percent over the past 10 years.
- The population of Christian County in Springfield has grown by 16.5 percent over the past decade. While Webster County has grown by 10 percent.
- The population growth in the Springfield metropolitan area was 0.8 percent last year, which is a bigger growth rate than any other within the state.
- Almost 700,000 people live within a 50-mile radius from Springfield.
- The population of the Springfield metropolitan area is predicted to reach more than 492,000 people in the next few years, growing by around 17,000 people.
Job Growth in Springfield, MO
The job market in Springfield decreased by around 0.10 percent last year. However, the economy seems to be recovering. The employment rate in Springfield declined to just 2.4 percent, according to the US Bureau of Labor Statistics as of October 2021. The job sectors in this city that show the strongest growth include health services, education, leisure and hospitality, transportation, trading, and manufacturing.
As the business continues to recover, there is a possibility that people in almost each industry can find a job in Springfield. It is because this region is the economic centre of a 27-county area spanning across Arkansas and Missouri, covering more than a million people. The Springfield local unemployment rate is 6 percent, which is higher than the national average of 5.5 percent.
Unemployment in Springfield decreased from 7.4 percent this time last year, but it is still well above the national average. The city’s job growth rate is 1.4 percent, which is lower than the national average of 2.1 percent. In all states, the economy of Massachusetts is heading to the right decision. But this progress has not reached Springfield yet. Job growth and local employment directly affect demands, which also affect home sales.
Life Quality in Springfield, MO
Springfield is nicknamed the Queen City of the Ozarks not without a reason. This city is a place where the job market is growing, and living is easy. Moreover, you can also find similar entertainment and cultural options found in much bigger cities.
- The living cost in Springfield is 9 percent more affordable than the national average.
- Springfield ranks the 79thbest place to live and the 82nd best place to retire according to the US News and World Report.
- Springfield is a city with the most varied weather in the country, with a humid subtropical climate, cold winters, and hot humid summers.
Springfield, MO Real Estate Market FAQs
- Is it good to invest in the Springfield Real Estate Market?
The Springfield real estate market was hit hard by the recession, but it is slowly recovering. Forecasts predict that there will be profits in the next few years.
- Is Springfield a Good City to Live?
Springfield received national recognition as a great place to live, work, and retire from Matador Network.