IN THE NEWS

April 2, 2011
Dallas-Fort Worth single-family 1st quarter rental market report

April 2, 2011 - According to Stamar Management Corp., a Dallas-Fort Worth property investment and management firm, the 1st Quarter of 2011 single-family rental market finished strong with inventories shrinking and price per unit increasing to $1,357.00. Another significant sign of a healthy rental market is "Days on Market", which decreased in March to 31 days. With the spring moving season about to hit, forecast are for continued demand for rental properties throughout Dallas-Fort Worth.

Current active Dallas-Fort Worth listings: 3,473

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January 3, 2011
Dallas-Fort Worth single-family rents back to normal

January 3, 2011 - As reported by Stamar Management Corp, a Dallas-Fort Worth property management firm, October 2010 rents for single-family houses in the Dallas-Fort Worth market skyrocketed to a $1,662 average per unit from $1,325 per unit in September 2010.

November and December of 2010 average rent per unit for single-family houses in the Dallas-Fort Worth market came back down to sustainable levels, as predicted November 19, 2010 article by Frank Ross, Stamar Management Corp Chief Economist.

*Average Rent Per Unit for Single-Family Houses in Dallas-Fort Worth: Nov $1,293; Dec $1,240
*Properties Leased: Nov 2,087; Dec 1,240
*Average Days on Market: Nov 34; Dec 40

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November 19, 2010
Dallas-Fort Worth single-family rents skyrocket

November 19, 2010 - According to Stamar Management Corp, a Dallas-Fort Worth property management firm, October rents increased for single-family homes (1-unit dwellings) to a average of $1,662 per unit compared to September 2010 average of $1,325 per unit. "This is a significant increase in adjusted rents for a one month period", says Frank Ross, Stamar Management Corp chief economist. Rents for single-family homes in the Dallas-Fort Worth market have been hovering around the $1,300 mark for a period of time and it remains to be seen if the market can sustain October numbers at the $1,662 mark. While this sudden jump in rental rates was unexpected, Mr. Ross predicts this was a fluke and more than likely we will see the numbers decrease back to the $1,300 levels in November and December. New properties going on the market for lease held steady at 3,212 in October compared to 3,175 in September. Additionally, other rental activity statistics improved from September as follows: New Contracts 260 Oct compared to 240 in Sept; 2,280 lease properties in Oct compared to 2,187 in Sep; Average 31 days on market (DOM) in Oct compared to 33 DOM in Sep. Overall, the Dallas-Fort Worth single-family rental market experienced a very good month in single-family leasing activity and now is a good time to look at adding single-family rental properties to your real estate portfolio, if you haven't already.

The Dallas-Fort Worth market remains one of the best markets in the nation for investors to purchase rental properties with a higher rate of return on investment as compared to other markets. Stamar Management Corp currently has a portfolio (subject to availability) of residential single-family rental properties throughout the Dallas-Fort Worth market. These properties can be purchased at wholesale prices -- great for investors looking for a solid turn-key real estate investment. Buy low, rent high! For more information contact us or email: mrailey@stamarcorp.com.

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October 20, 2010
Dallas-Fort Worth rental market remains robust

October 15, 2010 - According to Stamar Management Corp, a Dallas-Fort Worth property management firm, monthly leasing activity for residential single-family homes in the Dallas-Fort Worth area remains robust.

Homes for lease new listings shrank from 4,064 in August 2010 to 3,175 in September. New contracts also decreased from 2,692 in August to 2,187 in September. Seasonal demands more than likely played a role in decreases in inventory and demand. Average rents increased from $1,283 in August to $1,325 in October. Days on market ticked up slightly in October to 33 days as compared to 28 days in August.

The Dallas-Fort Worth market remains one of the best markets in the nation for investors to purchase rental properties with a higher rate of return on investment as compared to other markets. Stamar Management Corp currently has a portfolio (subject to availability) of residential single-family rental properties throughout the Dallas-Fort Worth market offering a 12% minimum cap rate -- great for investors looking for a solid turn-key real estate investment. Buy low, rent high! For more information contact us or email: mrailey@stamarcorp.com.

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September 30, 2010
Winning Streak Continues for U.S. Apartments

Occupancy rates and effective rents in U.S. apartments continued to climb sharply during the 3rd quarter.

Preliminary results from the firm's 3rd quarter shows that national apartment occupancy now is up to 93.9 percent. The performance improved by 0.5 percentage points during the 3rd quarter, and occupancy has firmed by 2.1 points since bottoming at the end of 2009.

Effective rents have increased by 1.2 percent since the middle of 2010. Year-to-date rent growth is at 2.6 percent.

The apartment sector's occupancy and rent upturns reflect that demand is surging at the same time that deliveries are slowing. Demand for 68,000 units was posted in the July-September time frame. Absorption in 2010 through the 3rd quarter totaled 283,000 units, one of the most robust tallies recorded during the past two decades. Apartment stock additions during the 3rd quarter were limited to about 12,000 units, and new supply finished during the initial nine months of the year was held to approximately 48,000 units.

While sluggish employment growth has triggered only mild new household formation, apartments are capturing a disproportionately large share of total housing demand. That pattern is likely to be sustained for a while, in part because current mortgage qualifications standards have made it tougher to buy a home. Expansion of the country's population of young adults, who tend to favor renting over ownership, also is working in the apartment sector's favor.

Apartment rent growth during recent months has been strong enough to get pricing changes into positive territory on an annual basis across three-fourths of the 64 metros. Most remaining markets have seen rents stabilize. The nation's strongest rent growth during the past year has occurred in El Paso, where rates are up 11.7 percent.

Las Vegas is the one spot still suffering a notable decline, with rents as of September off 6.3 percent from year-earlier pricing. Dips near 1 percent remain in place across Atlanta, Houston, Phoenix, Salt Lake City, Seattle and Tampa.

Look for the apartment sector to finish 2010 on a strong note. While occupancy has a tendency to backtrack a little during 4th quarter, that's in large part because seasonally slow leasing activity doesn't keep pace with completions. But this year, with only a handful of units coming online during the 4th quarter, occupancy is more likely to hold up, in turn allowing rents to continue to rise.

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September 15, 2010
August 2010 D/FW Residential Lease Activity.

As reported by Stamar Management Corp, a Dallas-Fort Worth property management firm, sales activity slowed in July 2010 in the Dallas-Fort Worth market which has resulted in some home owners opting to rent their homes in lieu of selling as a result of a softer sales market. August 2010 saw an increase of 4,064 homes going on the market for lease compared to July's number of 3,729. Average rents in August also trended downward from July's average rent of $1,353 to $1,283. This trend will more than likely continue until sales start to pick back up (with more owners opting to rent versus sale). Though the number of homes going on the market in August for lease increased (more inventory) and rents declining slightly (more competition), the average days a home was on the market in August for rent decreased (good) to 28 days compared to July's 31 days. The Dallas-Fort Worth rental market for single-family homes remains positive for both those looking to rent and owners looking to generate cash flow.

August 30, 2010
Greater Dallas - Fort Worth July 2010 Residential Lease Activity.

Dallas - Fort Worth area July 2010 single-family home leasing activity continues to improve as sales activity slips, though prices have seen modest gains. According to Stamar Management Corp, a Dallas-Fort Worth property management firm, there were 3,729 residential lease properties put on the market in July, 296 went under contract, and 2,714 leased after being on the market on average of 31 days. This is compared to July 2009 with 3,627 new properties, 213 under contract, and 2,477 leased with an average of 34 days on the market. With an optimistic population growth outlook, it is likely overall rent statistics will remain in positive territory throughout the Dallas - Fort Worth area. The average rent in July 2010 increased to $1,353 from July 2009 of $1,289.

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Dallas-area home prices were up 3.47 percent in the second quarter from the same period last year.

The Dallas-area price increase was higher than the statewide year-over-year average increase of 1.4 percent. Nationwide, prices were down 1.6 percent from a year ago during the most recent quarter.

The federal price report estimates that Dallas-area prices are 10.4 percent higher than five years ago and 76 percent higher than when the study began in the first quarter of 1991.

Quarterly data from the National Association of Realtors, which covers a broader market, estimated that home prices in the Dallas-Fort Worth area rose 2.1 percent in the second quarter compared with year-earlier statistics.

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August 17, 2010
Is the Dallas Real Estate Boom Coming?

This third largest, cosmopolitan North Texas city is among the top spots for entrepreneurs with appeal to diverse domestic and international businesses. Unemployment  in Dallas is under 5% and the city is second in the US in job growth. Housing is priced 23% below the national average, with a robust 91% apartment occupancy rate, translating into excellent prospects for long-term appreciation of investment property.

Many people forecast a housing boom in Dallas because the job market is forecasted to bring more people to Dallas than the housing market can keep up with.  Land near Dallas job centers is scarce and people are starting to pay substantial rental premiums to live closer to work. Dallas commute times are increasing as people are choosing to live farther into the affordable suburbs rather than pay the higher cost of living associated with living near the city center.  While Texas still has amazing expanses of inexpensive land, none of that land is close to jobs.

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August 15, 2010
Dallas Vacancy Rates.

Dallas hasn’t experienced a boom in rental rates because while demographics are headed in the right direction, Dallas is still burning off a small amount of excess housing that was built during the easy credit building boom from 2001-2007.   Current apartment vacancy rates are around 9%, however if you look at the rate of vacancy for properties that are less than 15 years old and the residential occupancy rate is much better.

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July 10, 2010
Characteristics of an Ideal Investment Property.

• Newer builds – Concentrate on 2003-2007 model brick and slab construction to withstand the extremes of Texas weather.
• 3-5 bedroom; 1300-1700 sq. ft. – This is the optimal size for the rental market.
• $110-140,000 range, renting at $1175-1600 monthly – This provides an excellent rent-to-value ratio of 1% of purchase price or better.
• Neighborhoods with a minimum of 80% owner-occupied/ maximum 20% renter-occupied ratio.

We recommend that you “go in with the investor’s eye”, focusing on factors like school system and crime rate rather than getting the rock-bottom priced property. Your property rehab strategy should emphasize “economy of scale ”, getting maximum efficiency by purchasing materials in bulk. This translates into savings since with each rehab property all major systems and appliances are replaced.

Special Appeal of the Dallas Market

For investment property, the Dallas-Fort Worth area is tops in terms of rate of return, with high rents and a cost of living well below the national average. With no state income tax, renting is especially appealing since tenants avoid the state’s comparatively high property tax . Of course investors recoup that with higher rents. Moreover, Dallas is a city of big spenders, not necessarily savers. Texas ranks at the bottom in credit scores, but this in turn gives rise to a massive rental market.

Financing Properties

Buy & Hold with a minimum of 5 to 10 years investment should be the approach with Texas property, allowing time to offset closing costs. Buy down financing – paying 1 to 3 points up front in order to secure a lower 30 year rate – is equivalent to pre-paying interest. This method yields savings within just a couple years of the loan.

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July 3, 2010
Dallas Supply and Demand.

According to the latest monthly review of the Texas economy from the Real Estate Center at Texas A&M University, Texas is leading the United States in economic recovery.    The Texas economy experienced its second month of positive annual employment growth up 0.9 percent from June 2009 to June 2010 compared with a negative rate of 0.1 percent for the nation.

Over the past 12 months the Dallas metro added 27,300 more jobs than it cut.  That is enough job growth to warrant the development of a mid sized city!   If a city needs 3 jobs to support every 5 people, 27,300 new jobs justifies a population increase of 45,500 people.  Kids and retired people don’t work but they need places to live. Assuming 2.5 people per household, 45,500 new people need 18,200 additional housing units.

In the past 12 months Dallas County added 5,351 apartment units and absorbed 7,596.  The numbers show people are absorbing apartments faster than they are being built.  The demand for housing is strong but apartment construction has dwindled because of the lack of construction financing.  This positive absorption is lowering vacancy rates substantially, however rental rates have remained steady.

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