Texas Housing Market For First Time Home Buyers On Home Purchase
This BLOG On Texas Housing Market For First Time Home Buyers On Home Purchase Was PUBLISHED On June 21st, 2020
The price points of homes in Houston and its environs were reasonably priced that middle income family can afford a great newly built home for the income that they make:
- Today in Houston with the number of families moving from the west and east coast to enjoy the friendly state of Texas, the price of home are appreciating dramatically
- First time home buyers in the medium income range find it almost impossible to buy quality brand new homes
- And as time passes, it the inventory will become less and less
In this article, we will discuss and cover Texas Housing Market For First Time Home Buyers On Home Purchase.
Rising Home Prices For The Past Four Years
Due to rising home prices, not just throughout the state of Texas, but nationwide, both HUD and FHFA have increased both FHA and Conforming Loan Limits for four years in a row. With mortgage rates being the highest in ten years, the demand for housing in all counties of Texas has not slowed. Actually, there are more buyers than inventory of homes in the state of Texas.
Cash Home Buyers And Texas Housing Market
- The East /West coast buyers often sell their home and move to Texas with a hand full of cash to spend on our mansions
- These homes here would have cost 3 times the price up north or in California
But they pay cash for them causing our market to always run low in inventory to meet the demand of our median income first time home buyers.
Investors And The Texas Housing Market
- The 100s to 200 thousand range of homes are always the investors’ delight
- Houston being a land of milk and honey for investors, the battle to get to the finish line and win the bid on these homes are just unstoppable
- This is because the rental market is strong for them
- They are receiving good returns on these investments
The Housing Market in Houston in August saw a 4.5% increase in leases of single-family homes and 10% on condominium leases.
Home Shortage And Housing Demand
A tale of two evils.
- Low inventory, and the lack of great builders willing to build at these price point, has left the Houston first time median income buyers with little or nothing to buy
- Hence, an agent working with these buyers who fail to see the reality of their situation
- But prefer to low ball the seller, hoping to steal home with financing, “calls the agent incapable of helping me get that house” when in fact, the agent did all within their powers the seller here is the player in this game and thus dictates the tone
- Do you want a home?
- Stop low balling the seller
Buying Versus Renting
The average home price for single-family homes in Houston housing market in August was $282,000 with a 3% increase from last year, and the median price of single-family homes went up to $215,000 a 5% climb.
- These families looking to pay about $1500- $1650 with an FHA 3.5% down are mostly not likely to find a home and are sent back to renting till they can afford more
- The cost of living in the state of Texas is reasonable
- That is the reason why it’s attractive for most family
- However, we need more quality new home builders
- Building in the mid $100 to $200 thousand price point is where homes are in major demand
- Real Estate Agents can meet this demand of this ever-growing buyers
Sales in September of 2019 was $150,000 – $249,999: increased 15.6 percent:
- and $250,000 – $499,999: increased 16.0 percent
- our housing market is experiencing huge growth and is not likely to stop anytime soon
I take pleasure in representing these price point home buyers. There is nothing wrong with buying what you can afford. I rather have clients buying what is comfortable for them, than buying what is way above their heads and end up late on their mortgage (foreclosure). Looking for an agent who can represent you regardless of your price point?
About The Author Of Texas Housing Market
Michael Gracz is the top producing veteran licensed loan officer with Gustan Cho Associates with offices nationwide. Mike Gracz is not just a top-producing licensed loan officer but is also the National Sales Manager at Gustan Cho Associates. The Team at Gustan Cho Associates Mortgage Group has a national five-star reputation for being able to close mortgage loans other lenders cannot due to its no overlays on government and conventional loans. Over 75% of our borrowers at Gustan Cho Associates are folks who could not qualify at other mortgage companies due to their lender overlays. Michael Gracz has a network of realtors throughout the United States. All of Michael Gracz’s clients whether real estate clients or mortgage clients become his lifelong friend. Mike of Gustan Cho Associates is a firm believer that knowledge is king. Mike Gracz is always studying new laws and regulations and keeping updated with real estate prices, foreclosures, and market trend not just in the Houston area, but the United States as a whole. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.