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Texas Real Estate Market Trends 2024

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Texas Real Estate Market Trends
Texas Real Estate Market Trends

Texas Housing Market Update: Insights for Real Estate Investors

The housing market has shown promising signs of recovery in 2024, making it an excellent time for real estate investing. Recent reports indicate a surge in building permits, particularly in Texas and the Houston metro area, which are rebounding after the impact of Hurricane Beryl. While the storm influenced new listings, it didn’t significantly affect home sales, with prices dipping slightly. This recovery creates lucrative opportunities for investors looking to capitalize on a revitalized market.

Outlook for the Texas Economy

Our most recent webinar was an informative session led by Catalyst Funding’s industry experts: CEO, Wade Comeaux and Director of Lending Jeff Johnson with our special guest, Jennifer McCormick, Single-family Sales Manager at Lifestyles Realty, Inc.

This article includes some of the best segments of the webinar, allowing you to get an overview of topics that interest you most. Watch the entire presentation here:

Active Listings Continue Upward Trend

Active Listings Continue Upward Trend

A key highlight is the significant increase in active listings. There were 34% more homes for sale compared to the same time last year, marking the 11th consecutive month of annual inventory growth. This trend has brought the inventory to its highest level since early 2020, driven by a combination of lower mortgage rates and a recent 50 basis point cut by the Federal Reserve. For investors, this expanded inventory offers a broader selection of properties, making it an ideal moment for property loans or hard money loans to finance purchases.

Current Outstanding Mortgage Rates 

As of the second quarter of 2024, the landscape of outstanding mortgage rates shows that a significant portion of homeowners are benefiting from historically low rates. Specifically, 21.6% of outstanding mortgages have an interest rate below 3%, while 34.6% fall within the 3% to 4% range. Additionally, 18.4% have rates between 4% and 5%. A smaller segment of 9.6% holds rates between 5% and 6%, and 15.8% have rates of 6% or greater. This distribution suggests that many current homeowners may be reluctant to sell, potentially limiting supply. Investors should consider this dynamic when strategizing their acquisitions, as lower inventory could drive competition and prices higher.

 
Current Outstanding Mortgage Rates 

“For savvy investors, understanding the implications of cash-out refinances and how they can help homeowners leverage their equity to make additional purchases is essential.”

Homeowners' Equity at Historic Highs

Homeowners' Equity at Historic Highs

An encouraging development for investors is the record level of homeowner equity, which has now reached 72.7% of total market value for owner-occupied homes, the highest level since 1958. This significant equity provides homeowners with greater financial security, leading to increased spending and investment in home improvements. For savvy investors, understanding the implications of cash-out refinances and how they can help homeowners leverage their equity to make additional purchases is essential. 
 

Affordability Index and Investment Opportunities

Despite positive signs, affordability remains a pressing concern in many urban areas. However, if you’re ready to explore vibrant cities with a lower cost of living, consider the charm of Dallas, Houston, and Austin—where your dollar goes further compared to places like Los Angeles and Miami! Plus, San Antonio has emerged as a hidden gem, offering incredible buying opportunities and making it an ideal spot for affordable living. The RealtyHop Housing Affordability Index highlights these opportunities and analyzes projected median household income, median listing prices, local property taxes, and mortgage expenses. This analysis provides a comprehensive overview of potential investment returns across the nation’s most populous cities, underscoring the importance of strategic real estate lending approaches.

Affordability Index and Investment Opportunities

Article References

  1. Active Listings Continue Upward Trend (Realtor.com)

  2. Current Outstanding Mortgage Rates (Calculated Risk)

  3. Homeowners’ Equity at Historic Highs (Realtor.com)

  4. Affordability Index and Investment Opportunities (Realty Hop)

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