Investors still want a piece of the Texas multifamily market, even though interest rates are going up and rents aren't going up as fast as they used to.  Check out Houston Area Rentals Here

Pacific Life, Walker & Dunlop Investment Partners, and Magma Equities all put in $189 million to buy two apartment complexes in the cities of Houston and Dallas-Fort Worth.

The joint venture bought The Village at Bellaire, a 580-unit apartment complex in the wealthy Houston neighborhood of Bellaire, and Lost Spurs Ranch, a 240-unit property in Roanoke, near the Dallas-Fort Worth metroplex.

The president of Walker & Dunlop, Mitchell Resnick, said that this investment shows that the company still believes in the stability and growth potential of multifamily properties across the country. "Magma has a long history of bringing a higher level of professionalism to the way apartment complexes are run. This makes them a very appealing sponsor, and we're happy to work with a leader in their field to add value to these properties in two of Texas' biggest cities.

The seller, whose name was kept secret, used to own and run the properties.

Walker & Dunlop, which is based in Maryland, works in the Texas market. In April, the company helped Tides buy the MARQ at Mueller for $30 million. This building is near the University of Texas at Austin.

Walker & Dunlop is also a part of Good + West's $150 million plan to build a build-to-rent portfolio in Dallas and Austin. Good + West is an Austin-based development company.

Magma wants to fix up the insides of the complexes and raise the rents.

The site plans for the former "Disco Kroger," once the well-known supermarket in Montrose, are complete.

Southeastern, a developer based in Georgia, plans to build a seven-story, $68 million mid-rise apartment complex, complete with two parking garages, on the site of the former 24-hour Kroger, which was frequented for nearly 40 years by late-night and early-morning shoppers leaving nearby LGBTQ bars and clubs when they closed for the night.

According to an article written by veteran Houston real estate reporter Ralph Bivins, the site was purchased by the Houston office of Swedish construction firm Skanska in 2021 for $27 million.

The art deco details and the pulsating dance music at Houston's "Disco Kroger" made it one-of-a-kind among grocery stores in the United States. When the business finally shut its doors in January of 2021, the boarded-up building was quickly vandalized with the words "RIP Montrose."

Many longstanding Houstonians felt that the total gentrification of an area once recognized as the home of the city's LGBTQ and artistic communities was signaled by the shutdown of the "Disco Kroger."

Over the past decade, new projects in central Houston's bohemian Montrose neighborhood have razed many of the area's long-standing shops and eateries.

Meanwhile, outside of Montrose, developers in Houston want to replicate the vibe of artistic communities like the Heights and the Heights Heights.

According to state records, construction on the 475,000-square-foot residential complex would begin in January 2023 and wrap up in late June 2024.

According to Southeastern, the location is "in the cultural center of Houston called the Montrose district which features the Houston Museum District."

The 330 luxury apartments at 3300 Montrose Boulevard will have amenities like a resort-style pool, cyber lounge with work-from-home spaces, game and club room, virtual golf and sports simulator, outdoor workspaces, outdoor kitchen and grilling areas, and a zen garden, as stated on Southeastern's website.

Mary Senn and Tanya Cianciolo, Southeastern's project managers, did not respond to The Real Deal's requests for comment.

The architect for the project is Davis Carter Scott Design of Tysons, Virginia.

Some Highlights

• If you’re buying a home, here’s what you should know about your home inspection and why it’s so important.
• A home inspection is a crucial step in the homebuying process. It assesses the condition of the home you plan to purchase so you can avoid costly surprises down the road.
• Let’s connect so you have an expert on your side to guide you through the process.

People still want to own their own homes. In fact, the Census says that the number of people who own their own homes in the U.S. is going up. The graph below shows the homeownership rate over the last year to show how it has gone up:

More than half of the people in the U.S. live in a home they own, and that number is growing over time.

If you're thinking about buying a home this year, here are a few reasons why so many people think it's a good idea.

Why do more and more people buy their own homes?

There are many good things about owning your own home. One important reason is that homeownership can help protect you from rising costs, especially when inflation is high like it is now. Chief Economist at the National Association of Realtors (NAR) Lawrence Yun explains:

"When inflation was around 10% in the 1970s, home prices went up at about the same rate. Inflation makes things harder for renters because rents tend to go up at the same rate as inflation, while fixed-rate mortgage payments stay the same for homeowners.

When you buy a home with a fixed-rate mortgage, you can lock in your housing payment, which is probably your biggest monthly expense, for the life of the loan, which is usually between 15 and 30 years.

That gives you a fixed monthly housing cost, which can help you in the short term. Over time, as the value of your home goes up and you make your monthly mortgage payment, you'll also build equity.

And as your equity grows, your net worth will grow as well. In fact, the most recent NAR data shows that the median net worth of a homeowner's household is about $300,000, while the median net worth of a renter's household is only about $8,000. This means that the net worth of a homeowner is almost 40 times that of a renter.

Bottom Line

The number of homeowners in the U.S. is going up. If you're ready to buy the home of your dreams, let's talk so you can get started right away.

The housing market is moderating from its two-year frenzy. What does that signify if you're selling a home?

Experts think home values will continue to rise in most markets, albeit at a slower pace due to rising mortgage rates. This means more homes are for sale. How you price your home matters more than ever in this change.

The Housing Market Today

Due to strong demand and insufficient supply, dealers might raise prices during the pandemic. This year, things are changing, and so should your pricing strategy.

Less buyer demand means this market is different than during the pandemic. If you don't...

Why Market Value Matters

Price conveys a message to purchasers. Too high a price may dissuade customers.

If your house sits on the market for a time, you may need to cut the price. Some purchasers may ask what a price drop means for the home or if it's still expensive. Realtor.com highlights the impact of sellers not adjusting to the market:

The share of postings with a price cut roughly doubled from a year ago but remains below pre-pandemic levels.

Price it appropriately from the start to avoid having to lower it. A realtor knows the perfect asking price. To get the proper price, they balance area home values, market trends, buyer demand, your home's condition, and more.

Pricing your home fairly depending on market conditions will attract more purchasers. This leads to better offers and a faster sale.

Why you should sell now

It's still a sellers' market, so plan appropriately and consult with an agent to put your price at market value. Lawrence Yun, NAR Chief Economist:

"Right-priced properties sell quickly, whereas overpriced homes repel purchasers."

Altos Research founder and CEO Mike Simonsen said, "We see demand for properly priced homes."

Overall

Today's real estate market favors well-priced homes. Let's talk so you can price your home based on current market conditions to optimize sales and decrease bother in a changing market.

Some consumers assume a housing bubble exists due of media coverage. You may worry what will happen as the home market transforms. Concerns that it could repeat 2008 are natural. Good news: There's data to show why this time is different.

There's a housing shortage, not a surplus.

Normal real estate market needs six months of inventory. Oversupply leads prices to fall. Anything less will cause price increases.

Too many homes for sale (many short sales and foreclosures) during the housing crisis caused prices to fall. Supply is expanding, but inventory is low.

The NAR graph below compares this time to the crash. At the present sales pace, unsold inventory lasts only 3 months.

Underbuilding contributes to low inventory. When you combine it with millennials' growing homebuying demand, home prices continue to rise. Experts predict property prices won't decrease this time due to limited availability and buyer desire.

The crash relaxed mortgage standards.

Before the housing crisis, home loans were easy to get. The graph below shows Mortgage Bankers Association MCAI data (MBA). Higher scores make mortgage approval easier.

Up until 2006, banks created false demand by lowering lending requirements and making it easier to get a mortgage or refinancing. Back then, lenders took on more risk with both borrowers and mortgage products. Mass defaults, foreclosures, and price drops followed.

Today, mortgage providers have stricter requirements for buyers. First American's chief economist says:

Increasing economic instability and monetary policy tightening have tightened credit criteria.

Today's stricter requirements help prevent another wave of foreclosures.

The foreclosure volume is down from the crash.

After the housing bubble broke, many homeowners faced foreclosure. Since the crisis, foreclosures have declined since buyers are better qualified and less likely to default. ATTOM Data Solutions helped create the graph below.

Also, today's homeowners have plenty of equity. Some homeowners used their homes as ATMs before the housing bubble. Once equity accumulated, many withdrew it. When property values fell, some homeowners had negative equity, meaning they owed more on their mortgage than their home was worth. Some households elected to walk away from their houses, which led to a wave of distressed property listings (foreclosures and short sales) that sold at significant discounts and decreased the value of other homes in the region.

Today's rising prices have boosted homeowners' equity. Black Knight:

In the past year, mortgage holders accumulated $2.8 trillion in tappable equity, a 34% rise that equals more than $207,000 per borrower.

With $207,000 in home equity, homeowners are in a new position.

Overall

If you're scared we're making the same mistakes as before, the graphs should help. Data and professional insights demonstrate why this is different.

Homebuying is a big decision. This is true for first-time buyers and sellers. If you're intending to buy a property, you may have heard about the changing market and wonder what it means for you.

While mortgage rates are higher and property prices are rising, you shouldn't put your plans on hold because of the market. Instead, examine why you want to move and how significant they are. Here are two reasons people buy homes today.

Space Needed

Moving.com analyzed migration patterns to learn why people migrated. Both indoors and outdoors, more room was needed.

Home outgrowth isn't new. If you want a big yard, additional gathering space, or extra storage or bedrooms, you may need to move.

Wanting to be closer to family

United Van Lines polls clients annually to learn why they relocate. Nearly 32% of people moved to be closer to family.

Pods, another moving and storage provider, cites this as a major reason people relocate. Flexible work alternatives have enabled many homeowners move closer to their loved ones.

People move because of altering priorities. Many organizations have adopted permanent remote working arrangements, allowing employees to roam freely across the country.

If you can move due to remote job, retirement, or another reason, you can be closer to loved ones. Being close for caregiving and social events may be what you need.

So, what?

One of these factors may motivate you to move. Mortgage rates and home prices will definitely influence your decision, but it's also crucial to make sure your home suits your needs. Compound Capital Advisors' Charlie Bilello says:

Your home should offer more than financial rewards.

Overall

Moving has numerous causes. Whatever the reason, if your housing needs have altered, let's talk.

Some Key Points

This year, experts say, there are more homes for sale than last year, which can have a big effect on your move.

If you want to buy, the market today may have just what you've been waiting for: more choices. With more homes on the market, you have more chances to find the home of your dreams.

Let's talk so you can get the most up-to-date information on homes for sale in our area.