Three Texas markets lead the list of markets facing a housing shortage that will boost home prices even higher than expected in the spring buying season, according to Local Market Monitor’s quarterly top investment targets.
“The economy has been growing quickly in these markets, there are lots of renters, and there aren’t many foreclosed properties to provide competition,” noted Ingo Winzer, president and founder of Local Market Monitor. Fort Worth, Houston and Austin top LMM’s first quarter list.
“The upward pressure on home prices—economic growth and a history of slow home construction—eased somewhat due to the horrible winter weather,” said David Hicks, co-president of HomeVestors, which sponsors the research. “But we think there are a number of markets nationwide that will run up against a housing shortage that will boost home prices even higher than most of us initially expected as the spring thaw gets underway.”
Hicks noted that new quarterly data compiled by Local Market Monitor identifies the markets where conditions are right for home prices to rise, making them prime targets for investors in single family homes as rental properties.
“In all the major markets in Texas, we are experiencing an actual shortage of properties for sale.’ Hicks noted. “Our franchises tell us they are quickly selling every house they can buy.” HomeVestors’ franchises are all independently owned and operated, which means they understand from a local viewpoint what is happening in over 110 markets nationwide.