A snapshot of the Texas housing market by Sharon Bartlett.

A snapshot of the Texas housing market

By Sharon Bartlett

The Texas housing market is continuously evolving and growing. We can prove this by the sheer intensity of multiple offers and the incredibly low volume we are experiencing. Recently, research data from various sources was compiled by the Texas Association of Realtors to provide the market with a clear picture of how the housing market is performing.

The research shows that in 2016 the homebuyers were strongly diversified; in case you were wondering. Nearly 30% of Texas homebuyers purchased their first homes in the last year. Also, the research showed that twice as many single women purchased their houses than single men in Texas. From the high international demand for Texas real estate, a boost in the economy was about $10 billion. The percentage of the international buyers from Asia was as big as in Latin America. In 2016, the research stated that one in five international homebuyers from India bought a house in Texas.

The kind of homes that homebuyers are looking for is also changing. Baby boomers and millennials in the urban are seeking alternatives that are low-maintenance to single-family homes. According to the 2016 Texas condominium midyear sales report, Texas obtained double-digit growth in condo sales volume and prices in four of Texas’s five major metropolitan areas.

Texas homebuyers continuously benefit from home improvement efforts and remodeling. According to Texas remodel valuation report, projects that improve a home’s sustainability,

curb attractiveness, and increase energy efficiency frequently yield higher recovery costs than projects cost.

Throughout 2016, home sales and prices continued to rise due to an increase in population growth and a robust housing demand across Texas state. Even though the job growth was slow and there was an ongoing economic crisis in the energy industry, 2016 surpassed 2015 with the biggest annual sales in the history of Texas.

OVERALL, THE NORTH TEXAS MARKET IN 2016 ACHIEVED NEW MILESTONES.

1. 101,529 homes were sold, breaking the previous record of 95,509 set ten years ago. This year’s outcome is 8% better than last year’s. 2. The total monetary volume of sales is $28,050,996,211, a 13 percent increase over 2015 and a new high. 3. The median sales price for residences was $225,000, up 10% from 2015 and a new high. 4. Home prices averaged $276,286 in 2016, a 7% rise over 2015 and a new high. 5. In 2016, the average number of days residences were on the market was 42. 6. In 2016, there were 18,355 active house listings on the market, down 1% from 2015. 7. The average price per square foot is $119, up 7% yearly.

HOUSING REPORTS

In February, the US housing market rally exceeded expectations. However, according to the wall street journal, economists expected the numbers to drop 2.2% in March.

According to the NBC news report, house prices have risen by about 15 % and even by 30% in some cities in the past year. There has been a shortage of available housing even before the pandemic started two years ago.

Acquiring homeownership does not come cheap that’s why experts recommend that you prepare with this knowledge.

NORTH TEXAS HOUSING PRICES

In March 2022, there was a 22% increase in the median home price which was caused by the following factors: coronavirus pandemic, inflation, and the increasing mortgage rates.

Ryan Price, the chief economist for Virginia realtors, told NBC News that, “We expected rates to rise, but they were moving a little faster than many people had predicted.”

You will find that a huge generation of urban millennial homebuyers is entering the housing market at a less ideal time.

Stacy Esser of Stacy Esser Group Realty told NBC News, “What I think is so important for everyone to realize is that this question is not coming from COVID.” “This isn’t because we had this offer or people were rushing out of cities, and they wanted “ suburbia; This is the demand because of our demographics. We have the largest prepared buyer pool demographically than we’ve ever had in US history,” Stacy added.

BUDGET PREPARATION

The most recent data shows that properties in all North Texas counties sell 4% above the asking price.

A DFW broker, Chandler Crouch, said in an interview with

ADVICE FOR TEXAS HOMEBUYERS

1. You should hire a real estate agent because it would be tough to independently negotiate and sort out paperwork. 2. Homebuyers should also know what they’re looking for in a home, be ready to move swiftly, and be aware that an offer rejection is almost certain. 3. It’s critical to consider your specific objectives while remaining open-minded and positive. NBC 5, “If you don’t have the money to at least replenish the amount of money you’re financing to buy a home, it’s hard.” In addition, since there is stiff competition in the market, it’s difficult for the buyers who don’t have cash on hand. Hence, if you want to beat other buyers in the market, you must do what’s necessary to win.

Crouch explains, “As unfortunate as it may sound to see interest rates “ rising, I’m hopeful that this will allow the market to correct a bit as we are in extreme times right now, and it needs to balance a bit. I don’t think the madness we are in can last much longer.”

IMPACT OF MORTGAGE PRICES

If the mortgage rates rise, new buyers will have to pay more money.

The average 30-year mortgage rate has surpassed 5% following the CNBC report for the first time in a decade. So, what this means is that if you purchase a house now, your monthly mortgage payments will increase by more hundred dollars higher than they were a year ago.

NORTH TEXAS LOW INVENTORY

Moreover, the supply of affordable housing remains limited across the country, particularly in North Texas. The limited housing pits homebuyers against each other to acquire the best deal.

Texas real estate research center reported 2,418 houses for sale in Dallas-Fort Worth in March, which is down by 88% from 20,853 available two years ago.

Price said, “ We have rising prices; we have purchasing power that is falling while rates are rising because there are so few homes available.”