The Texas housing market is one of the most overrated markets in the United States. With its booming economy, low unemployment rates, and high wages, it's no wonder why so many people are looking to buy homes in Texas. But what does the future of the Texas housing market look like? In this article, we'll explore the current state of the Texas housing market, as well as what to expect in 2021 and beyond.
Current State of the Texas Housing Market
The current state of the Texas housing market is strong. Home prices have been steadily increasing since 2018, and borrowing costs remain low due to the Federal Reserve's low interest rate policy.Additionally, government programs such as the Home Affordable Refinance Program (HARP) have helped many Texans refinance their mortgages and stay in their homes. Despite the current economic climate, home prices in Texas have remained relatively stable.The unemployment rate in Texas is also low, at just 3.7% as of December 2020. This is significantly lower than the national average of 6.7%. Wages have also been increasing steadily over the past few years, which has helped to fuel demand for housing in Texas.
What to Expect in 2023 and Beyond
The future of the Texas housing market looks bright.Home prices are expected to continue to increase in 2023, although at a slower rate than in previous years. This is due to a combination of factors, including rising mortgage rates, inventory shortages, and an increase in homebuyer optimism.Inventory shortages are a major factor driving up home prices in Texas. The Houston metropolitan area has seen a particularly severe shortage of homes for sale, with some areas seeing bidding wars among buyers. This is due to a combination of cumulative demand from buyers who have been unable to purchase homes over the past few years, as well as an age distribution shift among buyers that favors younger homebuyers.Buyer optimism is also on the rise in Texas.
According to CoreLogic's Home Price Index report for December 2020, there are more households interested in buying homes than there were a year ago. This is due to a combination of factors such as low mortgage rates, rising rents, and higher down payments.
Conclusion
The Texas housing market is strong and expected to remain so for the foreseeable future. Home prices are expected to continue to increase in 2023, although at a slower rate than in previous years due to inventory shortages and an increase in buyer optimism. Additionally, government programs such as HARP have helped many Texans refinance their mortgages and stay in their homes.As long as unemployment rates remain low and wages continue to increase, the Texas housing market should remain strong for years to come.
