Across the state of Texas, demand for homes is remaining strong. Supply continues to be strained as homes are snapped up shortly after going on market. While this naturally points to a sustained increase in new home prices (which is a trend we’ve seen in the past decade), we are also seeing this start to affect “fix and flip” properties.
Fix and flip properties are beginning to catch up on a percentage basis to the increase in price on new homes. These properties are traditionally lower priced than their newer equivalents, and are the first to be affected when sales start to increase. Seeing prices begin to creep higher on a percentage basis compared to new homes tells us the demand for homes remains strong in Texas, and in fact, that the supply of homes in general (new or otherwise) is too low.
We believe that demand for new construction will remain high as buyers continue to snap up new properties soon after they enter the market.