Why North Texas Housing is Blazing Hot!, by Johnnie Morine.

By Johnnie Morine

Why North Texas Housing is Blazing Hot!

It’s no surprise to see the housing market in North Texas getting hotter as time passes. The writing on the wall was clear, but only a few people understood the letters. In the case of North Texas, it has always been clear that the rise of home prices would happen sooner than later. According to June reports from the Dallas Morning News, house prices rose 26% compared to the same period in 2020. This is an indication that prices are unlikely to drop. Buyers are outbidding each other to put themselves on top, offering all kinds of incentives. But, what caused the current redhot market in North Texas? I’ll tell you why.

FACTORS RESPONSIBLE FOR THE RISING HOME PRICES IN NORTH TEXAS

While several factors are responsible for the sudden rush of homes in North Texas, such as the pandemic, the most common reason is the imbalanced demand and supply. Generally, there’s a shortage of homes across the United States, leading to bidding wars amongst potential buyers with cash. Buyers compete for the available homes for sale, and in some cases, they end up outbidding each other. I also blame some agents as catalysts for the rising home prices. Clever agents will raise the price to see that one buyer will beat the price. This causes the buyers to make offers that are far above the asking price.

The second reason for the housing market explosion is immigration. Over the years, North Texas has had a sound economy, which is agriculture-based. That’s why everyone wants to move there. In 2016 alone, over 400,000 immigrants were recorded, and between 2016 and 2017, the population had hit 28.3 million people. All these people can’t be homeless - they need a roof over their heads. Hence, the reason for the blazing hot market in North Texas.

The other reason is the rising costs of lumber and other building materials. The rise has kept many builders in limbo, hence why building constructions are moving at a slow pace that resulted in low home supply.

WILL THE HOUSING MARKET IN NORTH TEXAS CRASH?

No, I don’t think so. Why? Because the state has got a good economy. I don’t expect housing to burst anytime soon, provided the demand continues to outweigh the supply. What is currently happening may be permanent, and the hope that the bubble will burst might be a mere fantasy.

CONCLUSION

This is an excellent period for sellers to make profits from their properties. If you are a buyer, I suggest that you get into the market because, in a few months, you will look back and realize how lucky you were to purchase a property when the price was still reasonable.

Overpaying for houses is now a trend in North Texas, so if you don’t put on your A-game, other pros in the game will keep snatching houses under your nose. You just have to be prepared and ready to spend.

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References

https://www.forbes.com/sites/candaceevans/2018/05/17/12things-you-need-to-know-about-north-texas-realestate/?sh=6ddcc8522cd8 https://www.fox4news.com/news/hot-north-texas-real-estate-markethas-buyers-struggling-to-keep-up.amp https://comptroller.texas.gov/economy/fiscal-notes/2018/march/ housing.php https://www.wfaa.com/amp/article/news/politics/north-texas-redhot-housing-market-buyers-contracts-no-guaranteed-final-salesprice/287-015807ac-44e8-4199-a383-682d79cd953e