The new year shows the promise of exciting investment opportunities in Texas.
While 2022 was not a huge boon for real estate investors in general, the coming 2023 could hold some promise. With the fall of the stock market by 16% and dips into the bear market, real estate faltered as well. The median home price reached its highest point in history, then came down quickly as home buying quaked in a high-inflation, high-interest-rate environment.
Looking Ahead
The good news is that 2023 could very well be the year real estate investing upsurges once again, especially in the Texas market. Here’s why.
Sizzling real estate markets are great for those who already own investment properties because they benefit from rising values and higher demand. But it’s not an easy time to buy new properties. Stiff competition means you’re up against offers that may exceed what you care to pay. It can also mean paying too much for the property.
The Texas Real Estate Research Commission (TRERC) research team has made some educated guesses for 2023. A few known risks in the near term may impact this forecast, and exactly how these scenarios play out will shift TRERC’s expectations. The direction and intensity of the following national and international factors will have a large influence on the Texas economy:
- China’s zero-COVID policy and responses to ongoing public protests, which are hampering the global economy.
- Russia’s war against Ukraine, which has disrupted the global grain and energy markets, increasing instability across the globe.
- Europe’s energy situation (related to Russia’s war), which is especially dire and could worsen depending on the severity of winter.
- The outcome of the Federal Reserve’s attempts to control inflation through higher interest rates.
Looking at it from a more local perspective, the Dallas housing market is still strong heading into the end of year. Home prices may not be skyrocketing at the same rate that they were last year, but the appreciation continues.
While sales are down from this time last year, they are still well ahead of 2019 and 2020. Much of the decline from last year to this year can be attributed to recent interest rate increases that are cooling off many other markets across the country.
Although the current market is far from ‘normal or balanced, let’s not forget that, in Dallas, it’s still a seller’s market because of the lack of inventory. Still buyers should find it easier in the future thanks to these new developments.
Over the next several months, expect the pace of rising home prices to decrease. Many big metro regions are already beginning to show signs of this.
Whether you’re an investor or a consumer interested in buying or selling real estate, count on Cousin James Management to provide the friendly, accessible services you need and want. We not only provide expert property management throughout North Texas, we can help you with any real estate questions you may have. Get in touch. We’re here to help.
Comments are closed.