The Schweitzer Group
This is why we are still investing in today’s real estate market.
We often get one of two questions when we tell people we invest in real estate.
One question is … Isn’t now a bad time to invest or why don’t you wait until prices come down?
Our response surprises some; my No. 1 reason is the opportunity in the Fort Worth market. Between July 2021 and July 2022 Fort Worth added 52 people per day. The metro DFW area added 466 per day. According to a new study by Site Selection Group, Dallas-Fort Worth could grow to nearly 8.5 million residents by 2028. This means that the demand for residential real estate here in Fort Worth will most likely continue to increase.
As people keep moving here, the availability of affordable housing dwindles. The average sale price of a home in Fort Worth, according to the Greater Fort Worth Association of REALTORS, is $334,450; just a few years back in 2020, it was $234,900. Prices will most likely continue to increase as demand increases and supply continues to be constrained.
The Schweitzer Group
As we see a decrease in supply from builders, who are producing spec homes, we may see a shift into a stronger seller’s market in the area. We also have a lack of quality inventory due to inflation and higher interest rates. Increased prices to remodel homes causes current homeowners to be more likely to list homes without making significant updates.
The continued demand and lack of good inventory supply will result in continued appreciation for homes in this area. Our investment strategy is to purchase homes in areas with good schools, close to employment centers, and in the path of development.
Don’t forget the traditional reasons to invest in real estate are still applicable in this market: tax benefits, equity capture, appreciation, and cash flow.
Another question we get asked is … Why don’t you just wait for the market to crash or why we don’t believe the market will crash? Our answers are very much the same; the population growth rate in DFW and lack of significant new inventory will keep local prices high. Many homeowners have low mortgage rates, and with demand high, there is little distress in the market.
The Schweitzer Group
So, if you are now more open to the idea of investing in real estate but wondering how to make it work given today’s interest rates, call The Schweitzer Group. We have solutions and the right connections to help you move forward with your portfolio.
Let’s talk. Visit us here or call/text 817-821-2694.
