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– The real estate market in Amarillo, Texas has seen a shift since the COVID-19 pandemic.– Prices are holding steady, availability is low, and interest rates are higher than last year but going back to normal.– Property owners and lenders in Amarillo are conservative in leveraging their investments, which protects them during tough times.– Amarillo is not booming like other major cities in Texas during good times, but it also doesn’t crash during market downturns.– Inflation and the unemployment rate in Amarillo have led to increased operating costs for commercial properties.– Interest rates are the biggest reason for the current trends in the market.– Buyers should have enough cash to be comfortable with the deal and consider the potential future decrease in interest rates.– Selling commercial property may take longer due to the impact of interest rates on buyers’ purchasing power.
According to a report from a recent article on NewsChannel10, the real estate market in Amarillo, Texas has experienced a shift since emerging from the COVID-19 pandemic. Despite the challenges posed by the pandemic, prices have remained steady, availability is low, and interest rates have increased compared to last year, but are gradually returning to normal.
Andrew Coats, from Coats Commercial Group at Keller Williams, comments on the fluctuating interest rates, stating, “We were double what we were in COVID times whenever they dropped rates, but it becomes one of those objects of is this a fantasy versus what the reality is? I think that those low rates like that, that’s kind of like a fantasy when you’re there and typically it’s because something’s at a tipping point.”
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One unique aspect of the Amarillo real estate market is the conservative approach taken by property owners and lenders in leveraging their investments. This cautious approach ensures that they are not forced to sell when times get tough. Aaron Emerson, a broker at Gaut Whitennburg Emerson Commercial Real Estate, describes Amarillo as an “island” in the real estate market. During boom times in other cities like Dallas, Houston, and San Antonio, Amarillo typically experiences slower growth. However, when those markets crash, Amarillo continues to inch along steadily.
Emerson also highlights the impact of inflation and the local unemployment rate on operating costs in Amarillo. Expenses like electrical and construction costs have increased due to these factors. However, the main driver of the current trends in the Amarillo real estate market is the rise in interest rates.
For those interested in purchasing commercial real estate in Amarillo, the viability of the investment depends on the type of property and the buyer’s comfort level. Emerson advises potential buyers to ensure they have enough cash to comfortably put down and that the property can generate enough cash flow to withstand the higher interest rates. This strategy will be beneficial in the long run when interest rates eventually decrease.
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Selling commercial property in Amarillo may take longer due to the impact of interest rates on buyers’ purchasing power. While sellers may not necessarily need to lower their prices, they should be prepared for a lengthier selling process.
To bring everything to a head, the Amarillo real estate market has experienced a shift since the COVID-19 pandemic. Despite the challenges, prices have remained stable, availability is low, and interest rates have increased but are gradually returning to normal. Amarillo’s conservative approach to leveraging investments and its status as an “island” in the real estate market contribute to its unique trends. Potential buyers and sellers should carefully consider the impact of interest rates on their transactions and make informed decisions based on the current market conditions.
