Housing Market Update August 2022
Housing Market Update: Homeownership Still Within Reach
August Housing Market Update: Housing market change is a constant this year, and the current Texas market is nothing like the early 2022’s market. In fact, the current market is more favorable to homebuyers in many ways. Recent data shows that although rates are rising, homeownership is still affordable.
Here are the market facts you need to know, whether you’re a repeat or first-time buyer.
- Inventory Is Up
According to Texas A&M’s Real Estate Research Center, more houses are slowly coming available. Most recent numbers show inventory improved from one month of inventory to two months. This means there are more potential options for buyers, making competition less intense around singular homes.
Higher inventory should cause a less stressful buying process since you’ll have a wider array of backup homes. Hopefully, you’ll get fewer competing offers too. More homes mean more selective buyers and fewer bidding wars.
- Sales Are Down
Home sales for June of this year were 9.4% lower than June of last year – bad news for sellers. However, sellers’ increasing desperation gives buyers an advantage. Sellers must work harder to sell, which means you have more leverage during negotiations.
Declining sales also reflect decreasing demand. Buyers are more cautious and are stopping their searches. Now, you’ll have fewer competitors when you conduct your own house hunt.
- Prices Are Dropping
Lower prices may soon counteract rising rates. June had the first housing price drop since December 2020. Major cities like Austin and Dallas saw drops of 3.7% and .8%, respectively.
Even if these drops aren’t large enough for you, it’s a sign of things to come. Higher inventory and cautious buyers are making sellers think twice about listing their homes too high. The seller’s market is fading, and sellers must drop prices to entice buyers.
Overall, homeownership remains affordable due to shifting market forces. The cooperation between increasing inventory decreased demand and price drops give you leverage over sellers. Your main obstacle is rising rates, but these other factors could offset that cost.
If you’re ready to move into an affordable home of your own, get pre-qualified with First Bank today. We’ll help you navigate this ever-changing market.
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