Want to buy a new house in Texas but don’t know where to start?
It’s time to get the inners on Texas real estate.
When you buy real estate in Texas, you get a nice break with proper tax exemptions. Houses on certain pieces of land qualify for wildlife or agricultural exemptions. These qualifications reduce property taxes by the thousands
You also build retirement savings. Long-term homeownership leads to growth in equity. You can use that equity to pay off debts or use it as a financial lifeline.
Learn all the Texas real estate trends and why you may (or may not) want to live here.
Contents
Texas Property Values Are on the Rise
One of the greatest fears for homeowners during the pandemic was a decline in property value. That hasn’t happened in Texas. Sales and property value are on the rise.
Texas housing sales began the year with a 3% improvement, and it’s only March. Experts expect the housing market to increase by 6% to 10% in some major Texas cities.
Real Estate Investors Stand to Make Gains
People are still vacationing in Texas despite the looming pandemic. Because of this vacation trend, investors are making a killing.
If you have plans to buy an investment property, aim for Texas. Consider turning your investment property into an Airbnb. The cash on cash return for Airbnb homes in these cities make the transition worth it:
- Abilene, TX: 6.15%
- Seguin, TX: 5.75%
There are other Texas cities like Arlington and Garland with notable COC returns. But, these two top the list.
Consistent Population Growth Strengthens the Real Estate Market
Texas is the one state that almost never stops growing. Tech and oil fuels the state’s economy, which encourages the migration of businesses and business people.
Population growth entices investors to build and sell. The demand for homes from out-of-towners aids the growth of real estate. More than 50% of the homes in Dallas received multiple offers last year.
The rental market soars as well when population growth is on the rise. This growth could trigger higher property prices, but it works out in the end.
Supply and Demand
Also, consider the low supply and high demand imbalance. In hot places like Dallas and Houston, the demand for property is higher than the supply.
That is due to population growth as well. Tight inventory makes it challenging for homebuyers to find a home. For this reason, prices and sales experience and increase.
Ask companies like the we buy houses company. They have to wait in line as well.
Buy Texas Real Estate
If you’re considering a move to Texas, explore the Texas real estate trends first. Decide on a city, weigh the pros and cons, and head to the lone star state.
Let us guide you into remodeling your new home. Check out our home improvement guide for more modernized tips and tricks.
