What's Up with the Market!

This is, by far, the #1 question we are getting from the people we talk to every day. ...and we have a theory.

Texas is a high demand state with an overall cost of living that still makes it very attractive. We believe the market demand will remain strong and properties that are priced comptetitively will still sell the first weekend, but the hysteria of 2021 with the 10+ offers on most listings has passed.

One interesting thing to note is that homes purchased now with a 5-6% interest rate are approximate 3% points higher than they were just 4-5 months ago.

If you put this into real life numbers, that means if you go to buy a home today around 500K and you put 20% down, that $400,000 loan is going to cost about $11,000 more per year at the outset.

That's nearly a $1,000 higher monthly payment per month, for the same house, at the same sale price, just based upon the change in rate. This means that even if housing prices flatten out a bit, technically the buyers are still paying more than they were before.

So what will this do to the housing prices going forward? We believe we're going to see an initial slowing of the market as people get used to these new numbers, but we also take the big picture view remembering that the previous markets still saw people buying homes with 6% or higher rates. They just need a little time to adjust to the new normal.

If you have a Real Estate need, please reach out, we are always available to talk.

Featured Listing of the week!
15522 Rainbow Trout Drive
Bridgeland Texas 77433