Real estate investors flipped hundreds of homes across North Texas in 2023.
Dallas-Fort Worth is “ripe” with investor opportunities, according to the latest report by New Western, a real estate investment marketplace with offices in DFW.
New Western investors flipped “over 625” properties across North Texas in 2023, with 96% selling in under 10 days, said Zach Steinberg, senior general manager of New Western’s DFW office.
“Dallas is a pretty phenomenal place,” he told The Dallas Express.
Steinberg said investors are most attracted to the areas with “homes at the median price point or below,” which is around $390,000 though he noted that “it’s ticking up close to $400,000.”
“What’s really unique, is that as the median price continues to rise, inventory continues to remain flat at that 2.5 month mark. So, people are still buying these homes,” he said. “You would think that as prices rise, properties would sit on the market longer.”
This is not the case in DFW, he explained.
Steinberg described the market around North Texas as “sectionalized” — meaning that while some neighborhoods “sit a little longer,” others at the median price point “fly off the shelf.”
DFW’s booming economy, growing population, employment opportunities, and numerous entertainment options, along with the recent trend of corporate relocations are some of the key reasons inventory has hovered at 2.5 months, according to Steinberg.
“Read the news, there are new employment opportunities and jobs moving here almost daily or monthly now. Big companies are coming here like Universal Studios and PGA in Frisco. I mean, it’s all kind of entertainment as well. And that’s jobs. So that’s what’s keeping the inventory low,” he told The Dallas Express.
Furthermore, Steinberg said many DFW homeowners refinanced their mortgages to between 2% and 4% during the COVID-19 pandemic, which continues to help keep inventory flat around the region.
Despite the low inventory around the metroplex, that has not stopped investors from finding good short-to-long-term opportunities, whether it be a quick house flip or a new rental investment.
Steinberg said one of the most “exciting” areas for investors at the median price point is “the area around South Dallas.”
South Dallas is “very attractive to investors because, in addition to the shortage of housing, [investors] really give themselves a doable exit strategy where they can put the house up for rent or put it on the market,” he explained.
Even though South Dallas was one of the main markets for investors in 2023, Steinberg said Mesquite, Garland, Richardson, and North Collin County also presented good investment opportunities throughout the year.
Overall, DFW is an enticing market for investors. More than half of New Western investors expect their business to grow by 25% in 2023 while a third expect their business to grow between 25% to 50% over the following year, according to the report.
Investors have a variety of backgrounds and financial positions, and while it can be scary getting started in the industry, Steinberg said New Western works with everybody, whether someone is a “full-timer” or a “mom-and-pop operation” looking to flip houses on the side for extra discretionary income.