How Buyers Can Compete in Hot North Texas Housing Market
Posted On 2:51 am
Nearly 75,000 people moved to North Texas in 2020, at a time when supply chain issues and the soaring cost of lumber slowed the construction of new homes.
“A lot of people, when they think of buying a house, they think of what they see on TV: that we’re going to pick out a bunch, whichever one we like the best, that’s the one that we’re going to jump on and hopefully win,” McKinney-based realtor Jared Tye said.
Instead, buyers are finding a fast-moving housing market where mid-priced homes go under contract within days, or even hours, of hitting the market.
“It’s really wild,” Tye said.
Inventory Down, Prices Up
North Texas Real Estate Information Systems found median home sales prices shot up 26% from last May to $332,573. May 2021 prices are up 23% since May 2019.
Jim Gaines, an economist with the Real Estate Research Center at Texas A&M University said several factors impact prices in North Texas, including population growth, pent-up demand from the pandemic and future demand from buyers who are fast-tracking plans to buy a home now.
“In addition to the people moving into the area, people who already live here, who might have been considering buying maybe next year or the year after that or the year after that, they’re pulling that forward,” Gaines said. “We’re seeing some pull forward of future demand while interest rates are low and before prices increase any more than they’re already increasing.”
Low housing inventory is also a major factor.
“Being with A&M, I can tell you in Aggie-speak, you ain’t got none,” Gaines said.
The North Texas Real Estate Information Systems estimates North Texas has about a month’s supply of homes for sale.
Taylor Walcik with MetroTex Association of Realtors explained a healthy inventory is considered to be six months.
“People ask me all the time, ‘Is this a bubble? How long is this going to last?'” Walcik said. “My answer is, ‘It’s not a bubble, it’s a simple case of supply and demand.'”
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