The North Texas real estate market is scorching hot right now with people from your average homebuyer to the veteran investor making aggressive bids for parcels of North Texan land. Not even the current global health crisis is slowing market activity down.
So, whether you’re eager to relocate to the area for better career options or planning on making a killing in commercial real estate investment here, setting your sights on properties especially in the Dallas-Fort Worth Metroplex is an idea whose time has come.
Commercial real estate in North Texas
A report released by real estate investment think tank Real Capital Analytics showed how among all the major U.S. cities, Dallas bested them all with a $9.3-billion registered sales volume for the first half of 2020. Manhattan, a consistent top ranker, was unseated – moving to the second spot with $7.8 billion in sales volume. This, despite the onset of the pandemic during these critical months.
However, there were commercial property types that are selling more than others. As predicted, the demand for hotels, retail spaces, and office buildings slowed down in 2020. On the other hand, the volume of apartment sales has remained stable despite the onslaught of COVID-19.
That said, even as Dallas made that staggering performance, many market experts and observers believe that it also took a hit from the pandemic – albeit, not as bad as other metro areas of note in the country.
Still, investors are seeing promise this year in the Sun Belt markets like Dallas, Austin, Phoenix, and Atlanta for their more stable economic fundamentals and lower unemployment rates.
Residential real estate in North Texas
The housing market in North Texas, particularly in the DFW region, is awash with buyers. Home values are soaring to unprecedented levels, primarily propped up by the dearth in the housing inventory here.
Despite the strong showing of residential real estate even in the face of COVID-19, reactions are mixed among market analysts. On one hand, the optimism is largely due to the economic steadfastness of the DFW and the recent migration of people from affluent megacities like NYC and Los Angeles to the more affordable Sun Belt cities like Dallas and Atlanta. Moreover, as mentioned earlier. many residents of the city still managed to keep their jobs even as other cities were being bogged down by job losses.
On the other hand, the housing shortage runs unabated, buoyed by gaps in the supply chain of construction materials like lumber. Even labor in this industry has dipped with approximately 1,000 construction workers losing their jobs in the previous year. All these factors have exacerbated the short supply of available homes for sale which has already been a problem pre-pandemic. With the short supply comes a higher price markup for construction projects.
It always pays to be smart when it comes to investing in real estate, no matter the climate. While the North Texas real estate market is, indeed, throbbing with activity and the promise of handsome returns, doing your homework and knowing the factors that could affect your investment here is still king. Keep abreast with developments and learn as much as you can about trends in the North Texas property market.
One great way to ensure that you make the right moves in your real estate goals is by choosing a reliable working partner. For North Texas properties, that would be us! Contact Sarah Boyd & Company at 214.649.4403 or email Sarah(at)SarahBoydAndCo(dotted)com and get the best advice and recommendations for your investment strategy.