Texas has a lively real estate market, with prices increasing in recent years. Property prices have also been growing at 4.3% with home prices rising faster at 6.5% over a 12-month period. When buying a house, you should also take a look at the home loan market to see if you can afford it.
Before applying for a mortgage loan in Texas, you should check out the competition to get the best deal possible.
Real Estate Trends
All kinds of statistics are collected in business. This is also true for real estate and the sales of real property. One of the most important statistics is “months of inventory” or MOI. This is the theoretical length of time it would take to sell all the properties in the market if there were no new properties listed. This information provides an idea of the housing demand.
If the MOI is above 9 months, it is considered as a buyer’s market. If the MOI is below 4, it is seller’s market. In recent years, Texas MOI has reached 3.9 for new homes. Existing real property MOI is estimated at 3.6 months. It is interesting to note that both figures are approaching 4, which is considered as the threshold for neutral territory.
The prices of homes have also been increasing in recent years. The median single-family price is estimated at $255,600. This is an increase of more than 6% during the past year. Another important economic indicator is housing starts. There is an estimated 12.5% increase in housing starts.
This is a very strong trend for the housing market. It also means that the economy is growing stronger and more optimistic. The confluence of more housing starts, with increasing prices, as well as a seller’s market means that Texas would have a better than average housing market during the next year or two.