Housing prices and supply are beginning to return to a more steady level after a yearlong hectic housing market climate with skyrocketing prices and little supply, experts said.
A number of indicators shows the Texas housing market frenzy is over, said Luis Torres, a research economist for the Texas Real Estate Research Center at Texas A&M University, in a Nov. 9 news release. Factors such as depressed mortgage rates, more people preferring to buy homes, lessening pandemic effects on homebuyers, federal government transfer payments and the continued suspension of student loan debt payments are keeping demand strong. Home sales are increasing as supply also increases.
There is enough supply for homebuyers after more than a year of buyers frantically buying houses in a market where housing prices are over 30% higher statewide than one year ago, according to data from the research center.
The new and pending house listings indicate the supply of homes for sale is continuing to grow, Torres told Community Impact Newspaper. Although the supply is beginning to meet the demand again, housing prices and supply will even out and increase at a more normal and healthy rate. It is highly unlikely the value of homes will depreciate back to prepandemic levels, he said.“The strong activity within the housing market has reached a peak, so now the market is returning to a more normal level,” Torres said. “To give an example, imagine you’re driving at 120 miles per hour. You max out at this speed and then return to 70 or 80 miles per hour. You’re still driving fast, but you’re no longer at such a high speed.”
