The Texas housing market has been on a roll in recent years, with thousands of people relocating to the state and its labor market continuing to expand. But now, specialists are forecasting a 20% decrease in house prices in some regional markets due to an increase in the construction of new homes. Areas such as Dallas, Austin, and Boise, Idaho are expected to witness the most significant drops in prices. Nevertheless, not all areas will experience a major correction in the price of housing.
Those with low levels of new construction are likely to remain relatively stable. Marty Green, director of the Polunsky Beitel Green mortgage law firm in Texas, points out that many markets in the Northeast have “a fairly low incoming supply” and that most sales come from existing homes. This implies that homeowners are likely to stay put for longer, rather than selling at lower prices. The COVID-19 pandemic has also had an effect on the Texas housing market. San Antonio, El Paso, Houston and the Dallas-Fort Worth metropolitan area have all seen an increase in housing listings and a corresponding decrease in the number of homes sold.
Mortgage payments have also risen to an all-time high, leaving buyers behind and already driving down prices. In addition, rising rates and inflation have increased mortgage rates for everyone. This means that fewer people can afford to buy in a more expensive market, which will slow down the rate at which home prices rise. However, this doesn't necessarily mean that prices will fall anytime soon. Overall, experts believe that a six-month home offer is a healthy balance between buyers and sellers. This means that buyers would take six months to buy all the homes on the market.
Until recently, buyers competing for a limited supply of homes usually had to pay more than the sale price and make offers on the spot. In conclusion, while some areas may experience a drop in home prices due to an increase in new construction, other areas with low levels of new construction are likely to remain relatively stable. The COVID-19 pandemic has also had an impact on the Texas housing market by driving down prices due to rising mortgage payments and increasing mortgage rates. Ultimately, experts believe that a six-month home offer is a healthy balance between buyers and sellers.
