The real estate market is trending towards more sustainable growth. Sell house is growing by 6.6% year-on-year with the supply gap narrowing. More and more sellers are entering the market, and the same goes for Texas.
American buyers now have a better chance of finding a home. However, they are plunging into a fiercely competitive Texas real estate market.
This year, we are facing affordability challenges as things continue to rise. However, are you still looking to buy a home in Texas? Keep reading to know more about the current state of the market.
Increase listing price, rent and mortgage rate
The Texas real estate market looks tough for buyers. The exchange rate is still increasing in the context of the competitive environment. In the year 2021, house price in the state increased by 18.6% over the same period last year.
More properties are on the scene, but they are getting more and more expensive. In Dallas, bidding wars are becoming more and more common. This benefits sellers but alienates first-time homebuyers.
As a result, some potential buyers choose to wait. Affordability issues could eventually slow growth.
However, there is still a great need for a new home. The state saw many people move to Texas from California and Florida.
Secondary cities become more popular
Due to increasing rates in major Texas cities, more and more people are looking to buy homes in secondary cities. These are areas located just outside the rapidly growing metropolises.
These secondary cities will be more popular in 2022. They offer lower cost housing with more space. For many buyers, this move allows them to stay within their budget.
The opportunity to work from home allows families to live further away from their workplace. They no longer need to go to work every day, which gives them the freedom to choose entertainment outside of the big cities.
The younger generation is ready to expand their search area. These people may find their first home faster when they learn more of these opportunities.
Buying a House Than Renting
While many people continue to live in Texas by renting, 2022 could soon prove to be cheaper to buy. Also according to the same source, rents are higher than house prices this year.
Rents are up 7.1% and house prices 2.9% year-on-year. The home ownership rate is growing to 65.8%, up slightly from last year.
Millennials living in Texas make up about 53% of potential buyers this year. This generation is at a critical age to buy their first homes. Forecasts show first-time buyer demand is outpacing current inventory.
Many people from Generation Z are also entering the housing market. On the other hand, older Americans are downsizing their homes.
Learn more about the Texas real estate market now
The Texas real estate market is having another strong year, but it’s about to cool down. An increasing number of buyers means higher rates. Sellers are scrambling to meet demand, while buyers face affordability challenges.
Regardless, it’s best to be wary of the real estate market. Follow trends to increase your future savings.
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