It’s been a wild ride for home buyers in Texas over the past year – high demand and low supply caused skyrocketing prices in many of the state’s major cities.
Inventories below one month of inventory, when normally in a housing market, six months of inventories is considered a normal market.
And the factors at play were definitely the low mortgage rates and the pandemic increased the preferences families or future homeowners to purchase their home because the pandemic allowed a lot of people to work from their house.
Also definitely, the transfer payments by the government were a big help and also the student loan payments were temporarily stopped.
I can’t think of a time in which housing prices rose, just skyrocketed, like they did in Texas, except for perhaps California in the early 2000s.
So the good news is that the market is slowing down and it’s going back to more steady and healthy levels of growth.
And a lot of people were like: oh, you know what? I’m probably going to wait until next year, when the market is at a more healthy rate of growth or more stable rate of growth.
Now don’t forget, mortgage rates are expected to increase at the end of this year and next year’s slightly increase, slightly, but they are going to increase.
In my case, just to add, we’re actually looking to buy a new house, with small kids and everything, but we’re not doing that right now.