I Said it in January and I'll Say it Again... It's Not Going to Get Better

The market in north Texas is nuts. Maybe even bananas. But unless you live in a hole, you knew that already. But how hot is it? It is en fuego.

In my post from January I outlined some of the issues and why I felt this wasn’t a fad that would last for a few months. Well, now there is even more info. In a recent article from the Wall Street Journal, the public became aware that even DR Horton, one of the nation’s largest home builders, is getting in on the action. To chop it down to normal person speak, here’s the gist. DR Horton normally finds land, develops it, builds homes, and sells them to the public. Lately there have been confirmations that when selling lots, they have been holding raffles for the right to have a chance to build with them in some new subdivisions. They historically have refused to sell to investors. It’s gotten worse.

Recently down near Houston, they built a neighborhood like normal, but rather than selling to individuals, they rented out the homes… ALL of them. They then packaged this portfolio and sold the whole subdivision to institutional investors. One big conglomerate of big money investors all at once. Effectively this meant, you as an individual, had no shot at one of their new homes. Literally zero. So this new home inventory of 127 homes went right to one big investor for a cool $32 million.

So as I have said before, it’s not getting easier. In fact it is getting harder. And will continue to get harder. Many California investors are being quoted as saying that they feel Texas is where Cali was 25 years ago. And I think they are correct. And as I always say, experience matters now more than ever. I have some creative ways to address this situation. You have to be flexible. You have to be nimble. But with Broker Direct, we can make it happen.