RE Market Shifts | Bryan / College Station, TX | Aug 2024 Update

MARKET UPDATE

The real estate market in Bryan and College Station is seeing some significant changes, and as an investor, it's crucial to stay on top of these trends. Whether you're looking for your next rental property or planning a long-term investment strategy, understanding what’s happening in the local market can make all the difference. Here’s a deep dive into the August 2024 market shifts and what they mean for investors like you.

MARKET OVERVIEW: FEWER SALES, HIGHER PRICES

In August 2024, we’ve seen a 6.5% decrease in the total number of residential property sales in Bryan-College Station, with only 287 homes sold. However, the median home price surged 6.2%, now sitting at $324,950. This indicates demand is still strong despite fewer transactions, which could signal that buyers are becoming more selective or cautious due to economic factors like rising interest rates.

The most powerful statistic is still the increasing inventory. With active listings up 42.4% and 1,239 active listings, the increase in supply means that there are more opportunities to find a deal that fits your ROI.

For investors, there are more options to choose from, but at the same time, finding a cash-flowing deal might be more challenging. However, properties you do purchase could see significant value appreciation in the near future.

SINGLE-FAMILY HOMES: STRONG DEMAND, RISING PRICES

Single-family homes in the region have experienced a 9.4% drop in sales year-over-year (YoY), but the average price jumped by 7.5%, reaching $410,401. This price increase is great news for long-term investors looking for equity growth, but the higher price point may compress cash flow, particularly if you’re using financing in this higher interest rate environment.

If you’re holding onto a property, you may see nice equity gains, but for new acquisitions, be prepared to crunch the numbers to ensure the deal still cash-flows well.

TOWNHOUSES & CONDOS: OPPORTUNITY FOR AGGIE PARENTS

The condo market has taken a hit, with sales down 35.5% YoY and prices dropping 5.8% to $205,108. Meanwhile, townhouse sales have increased by 65%, showing strong demand, especially with a slight price dip of 1.1%. If you’re looking for a lower entry point into the Bryan-College Station market, townhouses and condos might be where you find your next deal.

For investors, this could be a great opportunity to buy lower-priced condos, particularly if you’re interested in targeting the Texas A&M student rental market or looking for a short-term rental option.

NEW CONSTRUCTION: LIMITED SUPPLY, HIGHER PRICES W/ RATE INCENTIVES

New construction is facing its own challenges, with sales dropping 22.1%, but prices still increased by 8%, now averaging $384,860. The price is slightly misleading, as builders have chosen to offer very attractive incentives rather than lower prices. Common incentives include rate buy-downs, appliance packages, upgrades (e.g., backsplashes and blinds), and money toward closing costs. Investors looking for hands-off, low-risk investments should factor the builder incentives into their analysis.

WHAT THIS MEANS FOR INVESTORS

With these market shifts, here’s what investors should keep in mind:

• Equity Growth Potential: If you already own properties in Bryan-College Station, rising home prices mean your assets are likely gaining equity.
• Increase in Supply Presents Opportunity: There are more options on the market based on the number of active listings.
• Cash Flow Compression: Rising home prices can mean lower cash flow, especially for financed properties, so be sure to analyze each deal carefully.
• Opportunities in Condos and Townhouses: With condo prices dropping and townhouse demand increasing, these could be valuable entry points for new investors or those looking for rental properties in the Texas A&M market.
• New Construction Costs: New builds continue to increase in price but offset that expense with very attractive incentives like rate buy-downs and appliance packages.

STAY AHEAD OF THE MARKET

As an investor, staying informed about local market shifts is key to making smart decisions. Be sure to watch my latest YouTube video where I break down these numbers in more detail and give actionable tips on how you can adjust your investment strategy to stay ahead of the market.