A year after the median home price in Texas increased by $65,000, according to data from the Texas Association of Realtors, the state’s housing market finally began to cool down. In an effort to examine whether this new trend will continue, we are breaking down the latest figures from the 3rd quarter of 2022 in this Texas housing market update. If you’re interested in buying or selling a home in the Lone Star State in the near future, you’ll want to take a look at these numbers.
The Texas housing market has long been hot, with homes for sale in Texas prices consistently rising and inventories remaining low. However, recent trends suggest that the market may be beginning to cool down after several years of continuous growth. In the third quarter of 2022, the number of single-family homes sold in Texas declined by 4 percent compared to the previous year. On average, median home prices were up 2 percent across the state, but certain areas saw sharper prices increase than others.
The current situation results from several factors, most notably the COVID-19 consequences. The pandemic has increased mortgage interest rates from 2.84 to 5.22 percent. The U.S. government has also not done much to help with this problem as they have been more concerned with other issues such as climate change.
In fact, Texas officials were so preoccupied with COVID-19 that Texas was one of three states that did not apply for federal assistance for low-income home buyers in 2016, 2017, and 2018. Officials said it was due to worries over funding, but another reason could be that Texas has a less diverse population than California or New York City.
How Is It Affecting Agents?
There are a few things that are affecting agents the most. The first is the increase in mortgage interest rates; when people have higher interest rates, they will be less likely to buy a house. The second effect is the pandemic because it has created an oversupply of homes. As a result, prices have decreased substantially. In addition, even though the markets show signs of cooling down, long-term consequences may occur from this event, such as increased unemployment rates due to fewer homes being built or sold.
The average house value in Texas has been rising for years and now seems to be cooling down. The coronavirus affected the housing market by causing a shortage of homes. Homes that were previously worth $100,000 are now worth as little as $90,000. Experts say that it will take years before the housing market recovers from the effects of this disease, and we can see prices again back at what they were before.
The housing market in Texas has been trending upward for the past decade, with a sharp increase following the 2020 recession. However, new data from the third quarter of 2023 indicates that prices are beginning to level out and may even be on their way down. Industry experts have cited several factors for this trend: higher interest rates, wage stagnation, and increasing supply as some possible explanations.
For example, since last May, there has been an average increase of 4250 homes for sale in Texas every month, and home sales decreased by about 2% annually during the same period. Experts suggest these trends will continue until we see a substantial change in one or more variables affecting demand and supply.
Why You Should Buy Now
If you’re considering buying a home, you should do it sooner rather than later. The Texas housing market has begun to cool down, and homes for sale are currently rising. As of the third quarter of this year, there were over 17,000 more houses for sale in Texas than there were at the same time last year.
This is great news if you’ve been looking for a house and have been having trouble finding one that meets your needs. Homes in Texas for sale seem to be about ten percent cheaper now than they were six months ago, so if you can afford it, go ahead and make the purchase!
What could be better about all of this is that those numbers translate into less inventory available for people who are still trying to find homes. There used to be fewer houses on the market than there used to be. With more homes being sold off, prices will continue to increase until we see an even split between buyers and sellers again.
What’s Left to Say?
If you’re considering buying a home in Texas, now might be a good time to do it. The market has begun to cool down, and homes are currently more affordable than in recent years. However, if you’re not in a hurry, wait a little longer to see if prices continue to drop.