A Quick Guide to the Texas Real Estate Market in 2022
The real estate market is looking at more sustainable growth. Home sales are rising 6.6% year-over-year with the shrinking supply gap. More sellers are entering the market, and it’s the same for Texas.
American buyers now have a better chance of finding a home. However, they’re throwing themselves into a fiercely competitive Texas real estate market.
This year, we’re facing affordability challenges as everything continues to rise. Still, are you looking to buy a house in Texas? Keep on reading to know more about the current state of the market.
Rising Listing Prices, Rents, and Mortgage Rates
The Texas real estate market looks grim for buyers. Rates are still increasing amid a competitive environment. In 2021, home prices in the state grew 18.6% year-over-year.
More properties are on the scene, but they’re getting more expensive. In Dallas, bidding wars are increasingly becoming more common. This practice benefits sellers but alienates first-time home buyers.
As a result, some potential buyers choose to wait out the frenzy. The affordability issues might slow down the pace of growth eventually.
There’s still a healthy demand for a new house, however. The state saw more people moving to Texas from California and Florida.
Secondary Cities Getting More Popular
Due to the increasing rates in the major cities of Texas, more people are looking into buying a home in secondary cities. These are areas just outside the fast-growing metros.
These secondary cities will be more popular this 2022. They provide lower-cost housing with extra space. For many buyers, this move allows them to stay within their budget.
Work-from-home opportunities are allowing families to live farther than their workplaces. They no longer need to commute every day, which frees them up to entertain choices outside the big cities.
The younger generation is open to expanding their search area. These people might find their first homes more quickly when they learn more of these opportunities.
Home Buying Over Rent
While many continue to live in Texas by renting, 2022 might soon prove it’s cheaper to buy a home instead. According to the same source above, rents outpace house prices this year.
Rents are increasing by 7.1% and home prices 2.9% year-over-year. Homeownership is climbing to 65.8%, a slight growth from last year.
Millennials living in Texas make up around 53% of potential buyers this year. This generation is in the prime ages for buying their first homes. Forecasts suggest that the first-time buyer demand is outpacing the current home inventory.
More from Generation Z is entering the housing market, as well. 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 looking at another strong year, but it’s about to cool off. An increasing number of buyers means higher rates. Sellers are scrambling to meet the demands, while buyers face affordability challenges.
Regardless, it’s best to be vigilant in the real estate market. Watch out for trends to increase your future savings.
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