Is the Dallas-FW market saturated?

Question

Lately I’ve been researching properties for sale in the Dallas - FW area. I don’t have access to the MLS yet but I’m no able to find any good deals in Zillow and Realtor. I know this was a up and coming area a couple years back but it seems to be saturated at this point. What do you guys think?

Lucia Rushton · Answer

@Jamie Blum yes DFW is a hot market. We have strong financials and a diverse workforce with people moving here everyday ( I am sure someone will pipe in with the actual numbers) What are you looking for and where are you looking?

Lucia Rushton · Answer

@Jamie Blum yes incredibly hot Small MF; mainly because we have so few. You are competing with OOS investors as well as house-hacking investors. You'll find one, just keep looking and run your numbers, don't get emotionally attached because I've had plenty of clients get out bid on properties and when I see the sold price it's crazy!

Jon Shoop · Answer

Jamie,

Lucia is 100% right. It's hard to find great deals here. Even so, DFW has a 7-8% higher renter vs. owner ratio than the national average. So it's a wonderful market for investment properties. Even more so with many companies looking to move here, the outer suburbs of Dallas, Fort Worth, and Arlington are exploding!

I'm also interested to know what areas specifically you are interested in and price range of your investment.

Hope that helped!

Jamie Blum · Answer

@Lucia Rushton thanks Lucia looking for a small multi family !

Jamie Blum · Answer

@Jon Shoop thanks Jon! I was looking into the Gran Praire Area as wells as Irving (but definitely open for advice).For budget I was thinking about 150-200 but definitely flexible on the budget side.

Johnny Wolff · Answer

Hi @Jamie Blum,

DFW price appreciation was hot, hot, hot for a number of years, but it appears to have slowed quite a bit right now.  We do really love the long term appreciation potential over the next 5-10 years though.  Does make it pretty tough to find good options, in good neighborhoods at prices below $225K today.

Happy to chat about DFW RE anytime...but you should really talk to @harrison sharp

Vernon Watts · Answer

Hi Jamie

Jon, Johnny, and Lucia are totally on point about the DFW market

I'm not as astute as they are, but I'm out here everyday making deals, some fall through, and others are signed sealed and delivered. But, I notice that in the DFW market property owners here are pretty knowledgeable about their property value and market fluctuations. For me, it's not that the market is saturated,you can find great deals here, it's more like I run into what I call "HARD SALES" a lot.

I find most investors, agents, brokers and especially wholesalers give up on stubborn,hold my ground home owners that wont budge off the above market value asking price they set, leaving little room to make money off a deal. So, they just sit there on "For Sale" properties.  I shop all of DFW, High and Low end properties which taught me to help Hard Sale owners with other problems that they may have, forcing them to be stuck on above market value with their property. There's many deals to be had in the DFW market, Many.

Jon Shoop · Answer

Hey Jamie! Those are some pretty hot areas with a lot of work destinations around them, I'd say you're on a good track!

What I've suggested to another BP member and what I think is good to look at for that price range are going to be the outlying suburbs of DFW. These are homes that are going to be lower in the price range but with the growth of the Metroplex, they're really going to appreciate in value over the next decade. McKinney, Prosper, Terrell, Burleson, Justin, and Argyle are all huge growth areas. Plus you'll be looking at newer builds so they aren't going to be as maintenance intensive as some of the older areas around Dallas or Fort Worth for investment properties.

- Jon

Is the Dallas-FW market saturated?

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