Best in Texas™: Flipping is a Flop in Texas by ALEX.realestate

ALEX just summarized ATTOM ‘s “Home Flipping Plummets Across U.S. in 2023 as Profits Slump Again.” ATTOM’s year-end 2023 U.S. Home Flipping Report indicates a significant decline in home flipping activities across the nation. Key indicators such as the number of homes flipped, profit margins, and return on investment (ROI) experienced a notable downturn compared to previous years. Texas led the nation with all four major texas in the bottom four in the US. The fourth-quarter data from 2023 suggests a continued trend of declining home flipping activities across the nation. In Texas markets, where the decline in home flipping rates and profitability is pronounced, investors must adopt innovative strategies to mitigate risks and enhance returns. By closely monitoring market trends, optimizing financing options, and focusing on value-added renovations, investors can navigate the challenging landscape and capitalize on emerging opportunities in Texas real estate. Texas Leads the Nation with WORST House Flipping Markets: The decline in home flipping rates was observed across all major Texas markets including Austin, San Antonio, Dallas, and Houston The worst: Austin (4.1 percent loss)Second worst: Dallas (4.4 percent profit)Third worst: San Antonio (5 percent profit)Tied for fourth worst: Houston (6.2 percent profit)Tied for fourth worst: Salt Lake City (6.2 percent profit) National Trends in Home Flipping: Flips as a portion of all home sales decreased from 8.6 percent in 2022 to 8.1 percent in 2023.In 2023, 308,922 single-family homes and condos were flipped in the United States, marking a 29.3 percent decrease from 2022.Gross profits on typical home flips dropped to $66,000 nationwide, resulting in a 27.5 percent ROI, the lowest since 2007. Factors Contributing to Decline: Tight supply of homes for sale and diminishing returns are identified as primary factors behind the decline in home flipping activities.Decline in profit margins for home flippers has been consistent over the past several years, even during periods of housing market growth. Financing Trends in Texas: The percentage of flipped homes originally purchased with financing increased slightly in 2023 to 36.5 percent nationally.However, Texas markets predominantly relied on cash purchases, with Austin, Dallas, and San Antonio reporting relatively low percentages of flips purchased with financing. Profit Margins and ROI in Texas: Home flipping returns in Texas markets experienced a decline, with Austin reporting the most significant decrease in profit margins.The ROI on typical home flips in Texas markets remained below national averages, indicating challenges for investors in generating substantial profits. Implications for Texas Real Estate Investors: The decline in home flipping activities and profitability underscores the need for investors in Texas markets to reassess their strategies.With decreasing profit margins and ROI, investors may need to adjust their financial models and renovation approaches to adapt to the changing market dynamics.

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Best in Texas™: 14 Best Large Texas Cities for Christmas by ALEX.realestate

ALEX Labs just completed analysis of Wallet Hub’s “(100) Best (Large) Cities for Christmas.” Thirteen of the top 100 best large cities for Christmas are in Texas led by San Antonio, then Austin and then Dallas! “…To identify the most festive and affordable cities for Christmas celebrations, we compared the 100 biggest cities in the U.S. based on 28 key indicators such as traditions, shopping, and costs. So, if you want to make this Christmas a memorable one without breaking the bank, check out our list of the most Christmas-friendly cities in the U.S…” ALEX knows more about Texas than just about anybody. If you have any questions, I am always here. Just call, text or email me. Diane Hart Alexander, MBA, MHA, CEO, BrokerAlexander Tiffany Southwest dba ALEX.realestateChairman, ALEX Cares v 713.591.9902o 713.918.9951e diane@alex.realestate PS – Are you a Texas real estate agent or broker? Do you want to be one of the few armed with the best seller and buyer lead generation, marketing, research, analysis including neighborhood / farming area trend and net sale price statistics? And, White Glove Service for your clients and for you? Contact me! Diane

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Best in Texas™: Best Metro Areas to Start a Small Business by ALEX.realestate

ALEX Labs just completed analysis of The Credit Review’s “Best US Metros to Start a Small Business.” The number one in Texas and in the US is Austin. Dallas – Fort Worth is number 2 in Texas and number 8 in the US. Houston is number 3 in Texas and number 22 in the US. San Antonio is number 4 in Texas and number 32 in the US! “…Launching a small business from anywhere is easier than ever in the era of remote work. While launching is one thing, sustaining success is another — location and resources are key… …two-thirds of new businesses survive the first two years…after a decade that number falls dramatically, with only a third of small businesses remaining open (SBA). The more resources a small business owner has, the better chances they have to succeed. This is why, despite the overall shift to a remote-centric world, geographic location matters more than ever for a small business’s long-term success…” ALEX knows more about Austin, Houston, San Antonio, Dallas and Fort Worth than just about anybody. If you have any questions, I am always here. Just call, text or email me. Diane Hart Alexander, MBA, MHA, CEO, BrokerAlexander Tiffany Southwest dba ALEX.realestateChairman, ALEX Cares v 713.591.9902o 713.918.9951e diane@alex.realestate PS – Are you a Texas real estate agent or broker? Do you want to be one of the few armed with the best seller and buyer lead generation, marketing, research, analysis including neighborhood / farming area trend and net sale price statistics? And, White Glove Service for your clients and for you? Contact me! Diane

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