Temple-Killeen Feels Like a bubble

[Pete Harper]

I never thought I would be joining the chicken littles of the world but the Temple-Killeen Market sure feels like a bubble.  I own property in Killeen and have been following the market closely.  I have bid on multiple properties over the past three years and feel I'm familiar with the market, what areas to invest and the types of properties, rent trends and property values.  I've been focused on small multifamily duplex and four-plex.  We purchased a four-flex in 2019 and the property has more than doubled.  It's time to buy more; Right?

The current market is absolutely insane. I just tried to schedule showings on four potential purchases. My agent came back with sellers are no longer doing showings. You need to be under contract before you are even allowed in the front door. Even under these conditions sellers are still getting multiple offers, over asking price, and sight unseen. There are normally bidding wars with the property on MLS only a couple days. IMO this is totally insane! Who buys a property, waiving all inspections, paying all closing costs, at over already inflated asking price, with all cash? This is not a healthy market. This feels like speculation/gambling not investing. It has been my experience in business when you find yourself in an untenable situation the Market always corrects it's self. For these reasons this particular market feels like a bubble about to pop.

Don't get me wrong, I liked this market.  However the fundamentals don't add up.  Killeen is a one employer town with Ft Hood.  Ft Hood remains stable, war currently very bullish.  I don't see it closing however I don't see it growing either.  Meta just announced a new data center in Temple set to open in 2024.  It is expected to add 100 new jobs.  That justifies 100-200 new homes maybe.  Nearby Austin is going gangbusters with hi-tech.  I don't see these high wage earners living in a boring drab little town driving an hour plus to work every day.  OK, to the North you have Waco with the Chip and Jo Anna factor.  Dallas is too far away to be factor even for the most dedicated commuter.  

What are your thoughts?  Smell like a bubble to your too?