The Housing Market’s Current State
The 2020 housing market exploded and this caused a major effect in interest rates. The amount of home sales significantly increased and even went over 2007 levels. Even though the pandemic brought alot of uncertainty and concerns, many buyers took home ownership more seriously than ever before. When covid first began, the interest rates did drop to a historic low.
The pandemic has led to an increase in homeownership because of the low spending amounts that has occurred during the pandemic. Slowly but surely, it has risen and rates have been 3-4%. In almost every area of the nation, there is a high amount of demand for homes. The real estate market has definitely kept strong and this major effect is still going to continue to escalate during 2022.
For many years now, home prices have had significant price increases. There is a post pandemic rebound happening which has resulted in steady mortgage rates, job recoveries and law of supply. Buyers have continued to get ready to enter the market even though there has been high demand with low inventory.
There have been double digit price increases reflecting the convergence of exceptional demand while very low supply. This is a result of extremely low mortgage rates and enough side money.
It is expected that 2022 home prices will wind down. The more inventory hits the market and the less bidding wars there are between buyers, price growth is expected to have a major come down. When analyzing all of 2022 real estate trends, there are notably very important factors that justify the pace in which the market is supposed to go for the next year.
Rates rising has affected monthly payments for all houses in the market. That would be the reason for all of the current buyers at the moment.
Houses have been selling in around 3-5 days. It is rare if they last more than 10 days. Some agents are even putting houses under contract within 48 hours.
Despite inventory constraints, sales rebounded and have elevated sales 0.9. Luxurious home sectors have had a powerful quarterly growth while homes that have closing costs that are around $300,000-$500,000 have had a double digit growth in price. These prices have outweighed any activity that has declined for homes that are priced less than $300,000. This has caused a major increase of the state’s average.
While still recovering from economic changes and conditions on robust sales activity, home ownership rates have declined to at least 65%, which is 2% below the usual rate in the U.S.
For now it can be considered that it is currently a sellers market and not a buyers market. What a seller’s market is there is more buyers and less inventory.
The median range for home prices in Texas have risen. It has increased 17%, breaking the record for $300,000 during September of 2021. With the amount of shift in sales for higher priced homes has contributed to a median price that is much higher. Luxurious homes that have been sold in other parts of Texas such as in Austin, have doubled. Because of this increase, less than half of all transactions made has contributed to the 30% YOY surge in median prices. In other areas of Texas, there are noticeable increases as well.
Freddie mac has been chartered as a major support that has helped keep money flowing towards mortgage lenders. This has resulted in an abundant amount of support for existing home buyers as well as for renters. For 2022, it is expected that freddie mac increases single family loan limits up to an even $1,000,000. This can result in more buyers towards the market which is likely to increase the value of homes.
Let alone buyers, but when it comes to the money, the sellers are making more for the house than it is actually worth. It would be a buyers market if there were a lot of houses for sale but no buyers. This is how houses last from 30-60 days in the market.
Currently, the average sales price of a house is $175,000 and it is slowly but surely going up to $200,000 in price.
2022 Real Estate Trends
Texas has built a reputation that has brought many families to live in great homes for less of a price than they may be used to if coming from other states. Many families coming from California have been buying homes in cash. This reputation also has to do with metropolitan areas that are consistently ranked among the most affordable in the nation.
2022 Real Estate Trends
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