5 Things to Know About the Housing Market in Texas Before Selling Your Home
While the world changed around us with the pandemic, the housing market didn’t want to be outdone!
Interest rates were low and home prices soared. People took advantage of remote work to move to the suburbs or to a different state.
If you’re thinking about jumping on the bandwagon by buying or selling a home, pay attention to the latest housing reports as interest rates are on the rise.
The data in these reports tell us how homebuilders feel about the market and the impact mortgage rates are having on demand.
With interest rates increasing, many homeowners are concerned about their home prices. Keep reading to learn everything you need to know about the housing market in Texas before putting your home on the market.
1. Prices
Homes have been selling for over the asking price due in part to the migration from California during the pandemic. As a result, many of the Texas markets hold homes that are overvalued.
As the home price growth slows down or goes flat, experts predict that markets with extremely overvalued homes will see 5 to 10% price corrections.
2. Interest Rates
Interest rates are up to 5% for the first time in the past ten years. This means a monthly mortgage payment will be several hundred dollars more per month compared to a year ago.
Another factor to keep in mind is the data released by The Texas Real Estate Research Center. Texans looking to jump into the Texas housing market and buy their first home need $10,000 more in income this year than last to be approved for a loan for a $229,000 house.
3. Supply
Affordable housing is still difficult to find especially in North Texas. The inventory in Dallas-Fort Worth is down 88% from two years ago.
In Texas’ four biggest metro areas, the total housing inventory remains tight. In regards to new construction, total Texas housing starts were up a the beginning of the year but rising lumber prices have slowed things down.
4. Demand
As of April of 2022, 55% of the homes were selling over the asking price meaning the demand was still high. The market becomes less competitive when there’s a low or shrinkage percentage of homes selling above the asking price.
5. Household Pulse Survey
The U.S. Census Bureau’s Household Pulse Survey showed that the number of homeowners unable to make next month’s mortgage payment rose in the state of Texas. The number of homeowners facing foreclosure also increased.
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Housing Market in Texas: Bottom Line
Now that you know the important things you need to know about the housing market in Texas, are you still interested in selling your home? Is now the best time? Talk to a real estate agent expert to avoid selling your home and having nowhere to go because of getting priced out of the market or because of the low inventory.
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