Not As Many 'Fixer Uppers' Available In DFW Area These Days

Fort Worth was ranked number 10 in the hardest places to find a fixer upper, according to the website, porch.com.

Video Transcript

- In today's Ones For Real Estate, the investor market for flipping homes in North Texas ranks as-- ranks us, rather, as one of the worst in the country, why new numbers suggest DFW isn't the thriving place for fixer uppers it once was. A fixer upper, or a flip candidate, is defined as a bargain-priced home that needs considerable repairs in order to make it livable. These kinds of homes historically were plentiful here in North Texas. And as a result, they brought in quite the active hustle of investors looking to take the flip and make a big profit. These days, not so much.

JACLYN LAMBERT: And what we found was that Dallas-Fort Worth area was number 10 for the hardest place to find a fixer upper.

- That's out of 100 major cities across the country known for flipping. The numbers for DFW were compiled by porch.com. Jaclyn Lambert is their spokesperson.

JACLYN LAMBERT: Out of all the listings, they had some of the fewest. And so there's less than 1% of homes that would be considered a fixer upper on the Dallas-Fort Worth market at this time.

- You should also consider the fact that general inventory of homes is currently sitting at about one month's supply, according to state researchers.

- The investor market for real estate is simply maturing in your area. And so what that means is, especially with inventory being limited, once the homes are fixed up and sold or way above asking, then where else do you go from there?

HAYDEN LYON: We're going to have these, you know, floor-to-ceiling windows that come in here. We're going to have the stairwell that comes over here.

- Hayden Lyon is a local flipper here in Fort Worth. He says a strain on available investment properties is forcing them to look at new and creative ways to land homes, things like finding them before they're even listed.

HAYDEN LYON: Because it's a competition between everybody, especially if you're just trying to get into the neighborhood. And meeting those that are, you know, flip candidates, it can be competitive between everybody.

- Investors say their playing field is packed with not just other investors, but with families looking for a place to live and hoping a fixer upper is their way of getting in on a home. While he's been able to land a few flips recently, he agrees the challenges are real.

HAYDEN LYON: People aren't moving. They're just waiting. They're not leaving their houses, so it's keeping things low.

- He says the entire real estate market is counting on two things to help stabilize this trend.

HAYDEN LYON: I think that will help, so COVID going away, rates going up.

- Those conventional mortgage rates, by the way, are already well above 3% these days. Well, another thing to keep in mind if you are in the flipping mindset, folks, costs of materials, especially lumber, right now also at historic highs. So keep that in mind. Well, if you do have a story idea for us, be sure to send us an email at ones4realestate@CBS.com. We'd love to hear from you.