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)
How to Scale Real Estate Business in Texas: Three Principles That Actually Work
The investors who grow from a few deals per year to a consistent operation across Houston, Dallas, San Antonio, and Austin don’t do it through market timing or access to cheaper capital. They do it through three principles that compound over time: building the right team, establishing systems before they need them, and adapting to what the market is telling them.
That includes knowing that your word to a seller is only as good as your lender’s ability to close. It includes tracking your budgets and timelines from deal one. And it includes reading market conditions accurately, and adjusting your offer prices, renovation scope, and exit strategy before the market forces your hand. This post covers the full framework, with practical guidance for both fix-to-flip and fix-to-rent investors at every stage of growth.
Introducing the Catalyst Deal Analyzer: Smarter Numbers, Better Decisions, Greater Success
In real estate investing, the quality of your decisions is directly tied to the quality of your data, and the tools you use to analyze it. Whether you are evaluating your first investment property or expanding an existing portfolio, knowing your estimated cash out of pocket, projected profit, and expected cash flow before you commit is one of the most valuable skills you can develop.
Catalyst Funding built the Deal Analyzer specifically to help Texas real estate investors do exactly that. Input a few key details about a fix-to-flip or fix-to-rent opportunity and instantly estimate the numbers that matter most, then adjust any variable in real time to see how changes in your renovation budget, hold time, ARV, or financing structure affect your outcome.
More accurate numbers mean more confident decisions. More confident decisions mean better results.
The Deal Analyzer is free, intuitive, and built for investors at every experience level.
2026 Is One of the Best Years to Start Investing in Texas Real Estate. Here’s Why…
Houston is officially a buyer’s market in 2026, and for real estate investors in Texas, that’s one of the best pieces of news in years. Inventory is up nearly 15% year-over-year. Sellers are motivated. Homes are averaging 70 days on the market before going under contract. And the bidding war frenzy of 2021? Gone. What that means for investors in Houston, Dallas, San Antonio, and Austin: deals are deeper than they’ve been in years, more properties are qualifying for no-money-out-of-pocket financing, and you have the negotiating room to buy at prices that actually work.
Yes, rates are higher. Monthly cash flow is tighter than 2021 lows. But when you’re buying at a real discount in one of the strongest long-term real estate markets in the country, the ROI tells a different story.
The window is open. Here’s how to use it.
You Got the Hard Money Loan. Then a Second Appraisal Came In Lower. Now What?
Most fix-to-rent deals in Texas involve two appraisals — and they don’t produce the same number. The hard money appraisal is forward-looking. The refinance appraisal is conservative, regulated, and often lower. If you only underwrote to the first number, the second one can derail your exit entirely. Here’s why the gap exists and what Catalyst’s Bridge Appraisal process does to close it.