Texas Real Estate Market Trends 2024
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Texas Housing Market Update: Insights for Real Estate Investors
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
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.
“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
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.
Article References
Active Listings Continue Upward Trend (Realtor.com)
Current Outstanding Mortgage Rates (Calculated Risk)
Homeowners’ Equity at Historic Highs (Realtor.com)
Affordability Index and Investment Opportunities (Realty Hop)
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