The market continues to change rapidly
Just a little over a year after Covid-19 came in to our lives. We have seen the real estate market continue to change rapidly. Record-low inventory remains a formidable challenge, but NAR, National Association of Realtors, is working on several initiatives to boost housing production and bring much-needed relief.
Specific to Texas, we have two variables really contributing to the market conditions. Young buyers entering the market space and out-of-towners.
The average first time home buyer is 33 and 33 years ago there was a huge baby boom. This sector of buyers entering the market place is just starting and we expect it will continue for years to come. When first time home buyers purchase a home, they deplete the inventory by 1, but do not replace the inventory with a home for sale.
Additionally, the increase in state-to-state moves, especially with a tax friendly state like Texas, has increased our incoming out-of-staters. When they purchase,, they also don't contribute back to the inventory pool.
These two variables continue to put pressure on our already low inventory creating historic lows.These lows create the climate for multiple offers and homes selling for way over the proposed value and hyper appreciation.
What does the future hold? Most economist predict the rest of the year will remain the same but there is talk that 2022 will be a different story. The moretorium on foreclosures is set to lift next year and this could be a variable we see that changes the future of the market.