Real Estate Marketing & Beyond
According to Zillow, the housing market in Dallas is expected to rise by 4.2% by July 2023. Home value has increased by 27.1% in the past year alone. In Texas, Dallas is perceived as the most affordable place to live, contributing to the increased demand for accommodation. Despite the rise in prices, there has been an evident downturn in demand for housing in Dallas. Perhaps to understand this a bit better, we need to look at the performance in the past couple of years.
Demand started rising in July 2020, and supply lagged slightly behind. By July of the following year (2021), demand had reached an all-time high in the state of Texas. The number of residences sold increased by 6.2% to 416,853 units.
Dallas still has great real-estate investment potential:
Renting in Dallas is more cost-effective than buying, mainly because the city has had an influx of young professionals who’ve settled in the city and keep coming. This category of people typically starts with rentals rather than purchasing as they’re just starting their careers. This has caused an increase in demand for rental units over the past 18 months.
Flower Mound has the highest rental rates averaging around $1,600 for a one-bedroom apartment as of October 2022. Needless to say that this is one of the areas where you’ll find your luxury apartments and studios.
There are plenty of sites with luxury apartment locators in Dallas, TX, where you can view listings. As an investor, you’ll find that the inventory for rental properties in these areas is low as people don't put these properties on the market too often.
Single-family homes or apartments are great investment options if you want to reap great rewards. With real estate education and experience, you can make this work for you. Single-family homes make up 43.51% of the total housing units in Dallas. With increased rental prices, these units are an option one should seriously consider. The average rental rate in Dallas is between $1,200 and $1,500 for a one-bedroom apartment. Even though it's lower than the national average of between $1,300 and $2,000, it's still very lucrative.
Despite Dallas having a burgeoning economy and employment rate, it still has the lowest homeownership rate in the country. Renting has proven more affordable than owning a home in the city. So if you want to buy and resell homes, this may not be the right market for you to invest in. It becomes even tighter for the higher end of the market, where there are more listings than potential buyers. The growing economy has been the primary cause of home price appreciation and interest rate hikes. So, if you’re looking to sell a property, then now may not be the best time as it's likely you won't get the asking price.
However, if you are a buyer, then this is the perfect time to look for property, yes, the interest is higher, and the mortgage application is stricter. Still, now that the bidding wars have ended, there’s more room for negotiation.
Whether you’re looking to buy for rental investment or refurbish and sell, the current Dallas market is a buyers' market. We’re seeing now, not a bubble or slowdown of the market. Instead, the market is beginning to normalize. The prices will still go up at a slower, average pace than the last two years. If you’re selling right now, then expect 97% to 95% of your asking price, especially for properties above $400,000. Realtor experts have said the market is now correcting itself from the frenzy of the previous years.
Lastly, always remember that interest rates get hiked when the economy slows down, which automatically pushes prices up and slows demand. That doesn't mean you can’t invest. You must find opportunities that’ll work for you and your needs.
