RECON for February 24, 2023RECON for February 24, 20232023-02-24T06:00:00Z2023-02-24T06:00:00Z
RECON Texas Real Estate Research Center
Wooden houses next to red up-arrow block
As we've learned the last couple of years, $200,000 isn't what it used to be. But it can be even more complicated than that. Dr. Adam Perdue discusses how inflation plays a role in the reduction of affordable homes in a recent blog post. (Photo from Center files.)
February 24, 2023

Texas’ mortgage market showing signs of stabilizing, survey shows

COLLEGE STATION (Texas Real Estate Research Center) – Initial signs of stabilization appeared in Texas’ residential mortgage market, according to the Texas Residential Mortgage Survey (TRMS). 

Industry conditions worsened through much of last year as the Federal Reserve increased interest rates to tame inflation and normalize post-pandemic demand across the economy. The January TRMS, however, indicated an uptick in residential mortgage activity relative to December, and operations are expected to accelerate in the first two quarters of 2023.

"​​This may be a first sign that falling prices have started pulling potential buyers back to the housing market," according to Adam Perdue, Texas Real Estate Research Center (TRERC) research economist. "Housing affordability, however, remains hindered by higher interest rates and prices relative to those seen during the COVID-19 pandemic."

The TRMS index for average value of home-purchase originations lifted into positive territory, indicating expectations of higher home prices after seven straight months of correction. The volume of originations is also expected to rebound over the next six months.

"We are optimistic for the start of the 2023 home-buying season," said Steve Remington, president of the Texas Mortgage Bankers Association. "The feedback from many of our members echoes the data shown in the survey, with a recent uptick in borrower applications and pre-qualifications after a sharp decrease in the second half of last year."

The TRMS tracks expectations for the number of pre-approved customers in the housing market over the next six months, and respondents expressed increased confidence in upcoming search activity.

"As interest rates continue to moderate and home values stabilize, we expect the Texas home market to perform well overall," said Remington.

While January marked a positive month for the Texas economy, there are still macroeconomic headwinds that merit close monitoring of residential mortgage activity and the housing market more broadly.

The monthly survey is the result of a collaborative effort between the Texas Mortgage Bankers Association and the TRERC to provide contemporaneous analysis of changes and conditions in the residential mortgage industry.​
Texas Affordability Summary - 4Q2022
Read more in the latest Texas Housing Affordability Outlook. For metro-specific data, read the Austin, Houston, Dallas-Fort Worth, and San Antonio editions.

San Antonio multifamily portfolio trades hands

​​SAN ANTONIO (REBusiness Online) – Three multifamily properties totaling 828 units have been sold.

The portfolio includes:​
  • Spice Creek at 8802 Cinnamon Creek Dr.,
  • The Clara at 10707 I-10, and
  • The Maxwell at 1431 Cable Ranch Rd.
Newmark represented the seller, a partnership between Multifamily Acquisition Advisors and Blackhawk Property Holding. 

Newmark also arranged Freddie Mac acquisition financing on behalf of the buyer, Harbor Group International. 
Registration is now open
Registration is now open for the 32nd Annual Outlook for Texas Land Markets. This conference provides information on a variety of legal, economic, social, and natural resources issues influencing current land market dynamics. It will be April 13-14 at the Hyatt Regency San Antonio Riverwalk. Registration closes April 9. Learn more and register here. 

Apartment tower rising near Highland Park

​DALLAS (Dallas Morning News) – Streetlights Residential is developing ​​​The Galatyn, a 20-story apartment building on Monticello Ave. between N. Central Expy. and McKinney Ave. ​

The tower will have 56 units averaging 2,700 sf. 

It will replace a small restaurant and retail buildings now on the site.

Construction starts this summer and wraps in spring 2025. 
What's your TRERC IQ?
Sure, you know real estate. But just how much do you really know about the Texas Real Estate Research Center? Take this trivia challenge to find out. Tell us how you scored on social media with the hashtag #TRERCiq. 

Work starts on 142K-sf San Angelo medical center expansion

​​​​SAN ANGELO (REBusiness Online) – Hoar Construction has started on a 142,000-sf healthcare project.

The seven-story building will be an addition to the 1.​5 million-sf Shannon Medical Center. 

The project will have three levels of parking and four levels of patient care facilities, including a 19,310-sf intensive care unit.

Completion is slated for summer 2024.​​​​
In Other News: From the NewsTalk Texas feed
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Fort Capital acquires 240K-sf portfolio

​​​HOUSTON (BisNow) – Fuller Realty has sold a 240,000-sf industrial portfolio to Fort Capital.

The ten-building portfolio includes:
  • Dairy Ashford Business Park in the Energy Corridor,
  • Rothway Business Center near SH 290 and Hempstead Rd.,
  • Kirkwood Tech Center in Stafford, and
  • Jameel Business Center off SH 290 and Beltway 8.​
Did you know the Texas Real Estate Research Center has employment and unemployment data for states, counties, and metropolitan areas? View monthly and annual data going back as far as 1976. Check out the data for free on our website.

376K-sf industrial project nearing completion

​​​AUSTIN (REBusiness Online) – Stream Realty Partners in nearing completion of Howard 130, a 376,380-sf indus​trial project.

The project is on 29 acres between I-35 and SH 130.

The development's three buildings will range from 94,400 to 197,980 sf.

Completion is slated for the second quarter. 
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Dallas-area multifamily property swaps hands

​​​NORTH RICHLAND HILLS (REBusiness Online) – Wood Meadow Apartments, a 222-unit multifamily property at 8515 26 Blvd., has been sold.

Built in 1984 and renovated in 2018, the property has one- and two-bedroom units.​

Amenities include a pool, fitness center, and courtyards.

The seller, a partnership led by SPI Advisory​, acquired Wood Meadow Apartments in 2017. 
Helping Texans make the best real estate decisions since 1971

Baranof Holdings acquires Austin self-storage

​​​AUSTIN (REBusiness Online) – Baranof Holdings has purchased a 1,041-unit self-storage facility.

REIT CubeSmart manages the facility, which has 1​00,417 net rentable sf of climate-controlled space.

The facility was 90 percent occupied at the time of sale.

CBRE represented the seller, KKR. 
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Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Texas Real Estate Research Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Bryan Pope. The Texas Real Estate Research Center is part of the Division of Academic and Strategic Collaborations at Texas A&M University in College Station - the heart of the Research Valley.


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