Is This A Good Time To Sell A Small Apartment Building In Dallas?
Is this a good time to sell a small apartment building or duplex in Dallas Fort Worth?
Markets have been changing a lot. In addition to typical real estate market cycles, we’ve hard political, weather, and new generational quirks, and new work trends that can all influence the property market. So, is this a good time to sell residential properties or small multifamily properties in the DFW area?
The biggest factor property owners should be taking into consideration right now is whether they have any more to gain by waiting to sell. Or if this is the optimal moment to get the most for their property. According to Zillow, Dallas property price growth is expected to slow by around 50% over the next 12 months. Prices have already virtually doubled since 2012, creating a lot of equity. Yet, Zillow considers the local market to have already turned in favor of buyers.
Property condition is another big factor. Owners with aging properties or those with deferred maintenance and repair needs may not want to make big investments, which may wipe out the next year’s income from rents. It may be better to simply sell now, and let the next buyer make updates to their tastes.
The current and evolving finance environment must be watched too. Right now investment capital is very available. Interest rates for investors and homebuyers are still attractive. However, this is expected to all change soon. That will also directly impact the number of able and interested buyers out there, as well as how much is makes sense for them to pay for duplexes and small apartment buildings. Recent events in Houston, may also be impacting where investors are looking for deals, and the discounts they are finding out there, which they will use to compare against other Texas real estate.
These dynamics are all likely to come full circle again in the next 2 to 3 decades. Owners who are confident that they can afford, and want to hold on to their properties for that long, may find benefit in doing so. Those who may want to sell before then, may find this the best chance they’ll get to sell their properties for top dollar, and capture the equity increases of the past few years.
Are you buying or selling Dallas? Let us know!