The real estate market is seeing more sustainable growth. Home sales increased 6.6% year-over-year as the supply gap narrowed. More sellers are entering the market, and it is the same for Texas.
American buyers now have a better chance of finding a home. However, they dove into the highly competitive Texas real estate market.
This year, we faced an affordability challenge as everything continues to improve. Still, do you want to buy a house in Texas? Keep reading to find out more about the current state of the market.
Increase in Listing Prices, Rentals, and Mortgage Rates
The Texas real estate market is looking grim for buyers. Tariffs are still increasing amidst a competitive environment. in 2021, house prices in the state grew 18.6% year-over-year.
The more properties are offered, but the price is costlier. In Dallas, bidding wars have gotten more and more commonplace. This practice benefits sellers but alienates first-time home buyers.
As a result, some prospective buyers chose to wait for the bustle. Affordability issues might slow down the eventual growth rate.
However, there’s still a healthy demand for new homes. The state is seeing more people moving to Texas from California and Florida.
Secondary Cities are Increasingly Popular
Due to rising rates in major Texas cities, more and more people are looking to buy homes in secondary cities. This is an area outside the metro that’s growing fast.
These secondary cities will be more popular in 2022. They provide cheap housing with extra space. For many consumers, this move allows them to stay within their budget.
Work-from-home opportunities allow families to live further away from their place of work. They no longer needed to commute daily, which freed them up for entertaining options outside of the big cities.
The younger generation is open to expanding their search area. These people may find their first home more quickly when they Study again this opportunity.
Buying a Home Over Rent
While many continue to live in Texas by renting, 2022 may soon prove that buying a home is cheaper. According to the same source above, rents are outpacing house prices this year.
Rents increased by 7.1% and house prices 2.9% year over year. Home ownership rose to 65.8%, growing barely from last year.
Millennials living in Texas make up about 53% of potential buyers this year. This generation is in the prime age to buy their first home. Forecasts show that first-time buyer demand exceeds current home inventory.
More of Generation Z are also entering the housing market. Older Americans, on the other hand, are downsizing their homes.
Learn More About The Texas Real Estate Market Now
The Texas real estate market is seeing a robust year, but will cool off. Increasing the number of buyers means higher rates. Sellers are scrambling to keep up with demand, while buyers face affordability challenges.
Regardless, it is best to be vigilant in the real estate market. Be aware of trends to increase your future savings.
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