Latest news with #TomSchwenk
Daily Mail
13-05-2025
- Business
- Daily Mail
Texas housing market faces challenges after surge of listings
By Homeowners have realized they are unable to make a quick buck by renting out vacation property in a stunning coastal Texas town because they have flooded the housing market. Buyers snapped up houses in Galveston during the pandemic with the hopes of being able to convert the properties into short-term rentals. During that time, the number of registered short-term rentals in Galveston more than doubled, with 2,300 listed in 2021 to 4,900 two years later. However, now many of those who purchased homes on the picturesque island have come to realize that it is actually a competitive, expensive and labor-intensive field. Climbing insurance costs, increased taxes and struggles to get bookings have led many owners to sell, according to the Houston Chronicle. The surge of listings have turned Galveston into a buyer's market, and many people are seeing their houses sit for months. Homes for sale in Galveston grew 42 percent in the past year, with nearly 1,000 listings in the first quarter, according to the Houston Association of Realtors (HAR). The coastal enclave has approximately 17 months of housing supply, over double the 4 to 6 months supply needed to be considered a balanced market. Local real estate agents told the newspaper that many investors were misguided and bought their homes in the wrong parts of town, resulting in them not being able to secure bookings. 'Galveston is a lovely place… but we're not the Hamptons,' said Tom Schwenk, broker-owner of Coldwell Banker TGRE. 'Some of them were being represented by Realtors who weren't really familiar with the island,' said broker Louis Salas. 'They didn't look at comps or the actual numbers. They were just excited.' Another problem forcing vacation rental owners to sell is rising taxes and insurance costs. In 2024, Galveston County began treating short-term rentals as businesses, putting an additional tax on the furniture and personal property inside rental homes, according to the newspaper. 'We're already paying registration fees, hotel taxes, full property taxes and now we're being taxed on the furniture inside, too. It's like, "Wow, really?" said Chris Wren with Galveston property manager Wren Nest Management. Costs are also increased because Galveston owners are required to have home, flood and windstorm insurance. Insurance premiums in Galveston's three main ZIP codes rose an average of 23 percent to 26 percent between 2019 and 2023 for a $400,000 home, according to 'People (who were) paying $400 for flood insurance are now paying triple,' said Alex Monteith with Galveston-based Insurance Junction. Now, many of those former vacation homes that were listed on Airbnb and VRBO are being sold - and sitting stagnate on the market.
Daily Mail
12-05-2025
- Business
- Daily Mail
Greedy Airbnb owners get nasty shock after driving up property prices in pretty Texas coast town
Homeowners have realized they are unable to make a quick buck by renting out vacation property in a stunning coastal Texas town because they have flooded the housing market. Buyers snapped up houses in Galveston during the pandemic with the hopes of being able to convert the properties into short-term rentals. During that time, the number of registered short-term rentals in Galveston more than doubled, with 2,300 listed in 2021 to 4,900 two years later. However, now many of those who purchased homes on the picturesque island have come to realize that it is actually a competitive, expensive and labor-intensive field. Climbing insurance costs, increased taxes and struggles to get bookings have led many owners to sell, according to the Houston Chronicle. The surge of listings have turned Galveston into a buyer's market, and many people are seeing their houses sit for months. Homes for sale in Galveston grew 42 percent in the past year, with nearly 1,000 listings in the first quarter, according to the Houston Association of Realtors (HAR). The coastal enclave has approximately 17 months of housing supply, over double the 4 to 6 months supply needed to be considered a balanced market. Local real estate agents told the newspaper that many investors were misguided and bought their homes in the wrong parts of town, resulting in them not being able to secure bookings. 'Galveston is a lovely place… but we're not the Hamptons,' said Tom Schwenk, broker-owner of Coldwell Banker TGRE. 'Some of them were being represented by Realtors who weren't really familiar with the island,' said broker Louis Salas. 'They didn't look at comps or the actual numbers. They were just excited.' Another problem forcing vacation rental owners to sell is rising taxes and insurance costs. In 2024, Galveston County began treating short-term rentals as businesses, putting an additional tax on the furniture and personal property inside rental homes, according to the newspaper. 'We're already paying registration fees, hotel taxes, full property taxes and now we're being taxed on the furniture inside, too. It's like, "Wow, really?" said Chris Wren with Galveston property manager Wren Nest Management. Costs are also increased because Galveston owners are required to have home, flood and windstorm insurance. Insurance premiums in Galveston's three main ZIP codes rose an average of 23 percent to 26 percent between 2019 and 2023 for a $400,000 home, according to 'People (who were) paying $400 for flood insurance are now paying triple,' said Alex Monteith with Galveston-based Insurance Junction. Now, many of those former vacation homes that were listed on Airbnb and VRBO are being sold - and sitting stagnate on the market.
Miami Herald
12-05-2025
- Business
- Miami Herald
Texas Housing Market Sours After Homeowners Are Given Bad Advice
The Texas housing market is facing growing challenges after a wave of former Airbnb properties flooded the market, making it harder for sellers to compete. According to Galveston real estate agent Tom Schwenk, many investors who tried to capitalize on the opportunities the short-term rental market were mistakenly advised and purchased houses in less popular tourist destinations. These homeowners, he said, are now struggling to sell their properties. 'Galveston is a lovely place,' Schwenk told the Houston Chronicle, 'but we're not the Hamptons.' Surging inventory across the Texas housing market signals a steep decline in competition. While the shift may give buyers an edge with potential price drops, it poses new challenges for homeowners and investors trying to sell or lease their properties. The number of new home listings in Galveston has risen to 828 in the first quarter of 2025 from just over 500 last quarter, according to the Chronicle's analysis of data from the Houston Association of Realtors (HAR). In its most recent housing market update, HAR described the supply of homes in the Greater Houston market as 'great news for prospective buyers,' with nearly 33,000 available on the market, the highest point since June 2011. The trend continues across the state, with the number of listings surging to 123,237 in April from 95,156 last year. However, the oversupply has created challenges for sellers and those seeking to rent out homes purchased during a COVID-19 pandemic-era buying frenzy, Tom Schwenk, the owner/broker of Coldwell Banker TGRE, told the Chronicle. According to real estate brokerage Redfin, homes in Galveston are on the market for an average of 105 days before purchase, up from 83 days last year. But the oversupply has not yet translated into a sharp drop in median home prices across Texas, which would signal the market entering 'correction territory.' Shae Cottar, regional director for brokerage platform LPT Realty,wrote in early April: 'Lower mortgage rates are giving Houston homebuyers a sense of optimism, but many are still proceeding with caution. It's important to acknowledge that current economic headwinds, including the impact of new tariffs, are putting downward pressure on interest rates. These lower rates, coupled with growing inventory and moderating home prices, create an opportunity for both buyers and sellers.' Jef Conn, chairman of Texas REALTORS, told Ramsey Solutions in January: 'We have seen listings taking longer to sell, so homes need to be market-ready and priced well in order to attract an offer. Buyers generally have more choices and a little more time to make decisions than a few years ago.' Marco Santarelli, founder of Norada Real Estate Investments, wrote on Sunday: 'The dramatic increase in inventory, coupled with clear signs of prices dropping and underlying overvaluation, strongly indicates that the Texas housing market is undergoing a significant correction. It's a necessary adjustment after a period of unsustainable growth. While the exact magnitude and duration of the downturn remain to be seen and could be influenced by broader economic factors like the energy sector, the direction is clear: the Texas housing market is cooling down, and prices are finding a new level.' House prices could soon react to the surge in inventory, according to real estate expert Nick Gerli, whose analysis suggests that homes are overvalued by about 17.7 percent across Texas, and he predicted home prices to drop by 4.0 percent over the next 12 months. Related Articles Greg Abbott Says All Construction Halted for Muslim 'EPIC City'Alisa Petrov: Police Expand Search for 'Endangered' Girl to TexasTexas Secures Historic $1.38 Billion Settlement With Google: What to KnowTexas Child Marriages Could End This Year 2025 NEWSWEEK DIGITAL LLC.
Newsweek
12-05-2025
- Business
- Newsweek
Texas Housing Market Sours After Homeowners Are Given Bad Advice
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Texas housing market is facing growing challenges after a wave of former Airbnb properties flooded the market, making it harder for sellers to compete. According to Galveston real estate agent Tom Schwenk, many investors who tried to capitalize on the opportunities the short-term rental market were mistakenly advised and purchased houses in less popular tourist destinations. These homeowners, he said, are now struggling to sell their properties. "Galveston is a lovely place," Schwenk told the Houston Chronicle, "but we're not the Hamptons." Why It Matters Surging inventory across the Texas housing market signals a steep decline in competition. While the shift may give buyers an edge with potential price drops, it poses new challenges for homeowners and investors trying to sell or lease their properties. A for sale sign is displayed near a home on April 24, 2025, in Austin, Texas. A for sale sign is displayed near a home on April 24, 2025, in Austin, To Know The number of new home listings in Galveston has risen to 828 in the first quarter of 2025 from just over 500 last quarter, according to the Chronicle's analysis of data from the Houston Association of Realtors (HAR). In its most recent housing market update, HAR described the supply of homes in the Greater Houston market as "great news for prospective buyers," with nearly 33,000 available on the market, the highest point since June 2011. The trend continues across the state, with the number of listings surging to 123,237 in April from 95,156 last year. However, the oversupply has created challenges for sellers and those seeking to rent out homes purchased during a COVID-19 pandemic-era buying frenzy, Tom Schwenk, the owner/broker of Coldwell Banker TGRE, told the Chronicle. According to real estate brokerage Redfin, homes in Galveston are on the market for an average of 105 days before purchase, up from 83 days last year. But the oversupply has not yet translated into a sharp drop in median home prices across Texas, which would signal the market entering "correction territory." What People Are Saying Shae Cottar, regional director for brokerage platform LPT Realty, wrote in early April: "Lower mortgage rates are giving Houston homebuyers a sense of optimism, but many are still proceeding with caution. It's important to acknowledge that current economic headwinds, including the impact of new tariffs, are putting downward pressure on interest rates. These lower rates, coupled with growing inventory and moderating home prices, create an opportunity for both buyers and sellers." Jef Conn, chairman of Texas REALTORS, told Ramsey Solutions in January: "We have seen listings taking longer to sell, so homes need to be market-ready and priced well in order to attract an offer. Buyers generally have more choices and a little more time to make decisions than a few years ago." Marco Santarelli, founder of Norada Real Estate Investments, wrote on Sunday: "The dramatic increase in inventory, coupled with clear signs of prices dropping and underlying overvaluation, strongly indicates that the Texas housing market is undergoing a significant correction. It's a necessary adjustment after a period of unsustainable growth. While the exact magnitude and duration of the downturn remain to be seen and could be influenced by broader economic factors like the energy sector, the direction is clear: the Texas housing market is cooling down, and prices are finding a new level." What Happens Next House prices could soon react to the surge in inventory, according to real estate expert Nick Gerli, whose analysis suggests that homes are overvalued by about 17.7 percent across Texas, and he predicted home prices to drop by 4.0 percent over the next 12 months.
