Quick Hits: Planning to buy a house? Don’t delay it further, for prices are going be higher with every passing day. Single-family homes are considered ideal investments, along with apartments or similar housing development properties. Besides, mortgages written during this time is considered low risk, though if there’s a price boom, underwriting standards will become stricter. Now is the right time to invest in retail industries, particularly, if you are looking to invest in Denton County.
The neighborhood is a combination of classic (computer chips, aerospace, telecommunications) and current (energy, transport, healthcare) sectors, and with a focus in business services and finance. This combination makes it a stronghold for higher wages, and thus boosts real estate potential. Though reduced oil prices have brought the growth rate down a notch recently, particularly in Ft. Worth, the potential for energy sector in the longer run is prospective.
Population growth is double as compared to the national rate over the last few years, which has hiked house prices up several notch making it difficult for builders to stay updated. Dallas has seen 29% hike over the last three years, whereas, it is 23% for Ft. Worth. Even though there’s a hike, prices still remain around the low-income range – about $200,000 – and there would be further increase during the coming years. So, don’t wait if you want to buy a house in this area. I anticipate about 10% rise in Dallas this year, and slightly more for Ft. Worth.
Rents are high when you compare it with prices of a home, which means, investors will get better returns on rental properties, more so if they’re single-family houses. The growth rate is good in Dallas because many youngsters have moved there and prefer renting, especially during the initial years. About 50% of the houses in Dallas are rented, 40% in Tarrant County and fewer in Collin and Denton Counties. Hence, investors can anticipate good ROI in rentals during the coming years.
Since home prices are on par with low-income range, mortgages come under average risk. Considering mortgages are now low risk, it will guard against losses due to price hikes. However, consistent hike in prices on a higher range can create over-priced market – which means mortgages will become high risk during that time. Whether price boom will bring about plateau or bust remains to be seen.
Metro area’s growth has been uneven and Tarrant County has seen the slowest rate of growth and fastest has been Collin and Denton Counties. I anticipate at least 20,000 new single-family houses being built in Collin and Denton in three years. As for Dallas County, I anticipate 50,000 new apartments and homes respectively.
Dallas County boasts highest immigrant population of Latinos, whereas, Collin County has more Asian immigrants, graduates, higher average income and house prices. On the other hand, average low in all counties are fewer retirees. Due to home prices and reduced rentals comparatively, single-family homes are by fat the best investment potential options in Tarrant and Dallas Counties.
Retail business growth is in line with population growth and the strongest retail growth has been in Denton County at 18% during the last two years. However, Denton County stills is under served on restaurants and retail stores when compared to Dallas County and other areas.