Should You Buy Your Dream Home Now or Wait?
The reason home prices have shot up 34% in the United States in the last two years is that there is a lot of demand for housing, but not enough supply. Now in 2022, record-high prices, rising interest rates, and limited inventory have triggered speculations about the housing boom cooling. Is this true for Houston? Well, not entirely if one looks at the latest data from the Houston Association of Realtors (HAR).
On a year-to-date basis, the market has kept the momentum – running 7.4 percent ahead of 2021’s record-setting sales volume, according to the new housing market report released by HAR.
After reaching record prices in March, buyers pushed Houston home prices to even higher levels in April. The average price of a single-family home rose 14.9 percent to $426,061 while the median price jumped 16.6 percent to $343,990.
“Contrary to what some people think, we do actually have new listings hitting the market, but they are selling exceptionally quickly and at some of the highest prices of all time as buyers and investors make cash offers well above the asking price to beat back their competition,” said HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene.
Rising interest rates and limited inventory have slowed down the market a bit, but not by a huge margin.
Single-family home sales registered a fractional 0.2 percent decline with 9,079 units sold in April this year compared to 9,100 in April of 2021.
Homes priced between $500,000 and $1 million experienced the largest increase in sales in April, registering a 45.0 percent year-over-year sales volume gain, according to HAR. Active listings (the total number of available properties) rose 5.2 percent. Sales of all property types were statistically unchanged, totaling 11,384, and total dollar volume for April jumped 14.5 percent to $4.5 billion.
Due to the high competition for homes, prices will likely continue to soar. For this reason, buying now may still turn out to be a wise decision in the long run. If you’ve decided to wait because you are not able to get approved for a conventional mortgage, we – here at TL Global – can help you learn about a unique third-party owner financing program. The program enables you to buy any single-family home listed for sale with fixed monthly payments and a 30-year amortization period. Get in touch with us today to learn more!