South Central Texas Housing Market Update for June

Posted by Chip Bubela on Monday, June 21st, 2021 at 3:33pm.

See what’s changed in our South Central Texas real estate market.

As you likely already know, we’ve been in a strong seller’s market for quite a while now. There are very few homes available but many eager buyers, so competition is fierce. Part of this is because new home construction has been lagging behind population growth over the past decade. Starting in 1970, there were around 10 to 12 million homes built every decade. From 2010 to 2020, however, there were only 6.5 million new homes built.

Millennials are the biggest generation now, and many of them are ready to purchase homes. Unfortunately, there aren’t enough available for them, and prices are rising rapidly as a result. Additionally, low interest rates are pushing even more buyers into the market. To win a home, though, most buyers are having to offer above and beyond the asking price. In fact, there was one person who offered $500,000 over list price on some land recently, and it still wasn’t enough to secure it. It’s no secret that people are rushing to Texas to buy land and property.

"It’s also going to take a while before inventory catches up with demand, so prices will likely continue to rise."

On average, homes spend 17 days on the market before selling. Four years ago, this number was 39. During the housing market downturn of 2009, there was easily eight or nine months’ worth of inventory, and that was typically how long it took to sell a home. Working with sellers was challenging back then, but the tables have certainly turned. It’s just incredibly difficult to find homes right now. It’s also going to take a while before inventory catches up with demand, so prices will likely continue to rise in the future.

In South Central Texas, we have less than a month’s supply of inventory in most areas. Small cities like La Grange and Schulenburg already have few homes available, and most of these listings are getting absorbed each month. Needless to say, it’s a seller’s market almost everywhere.

If you have any questions about our market or are thinking of buying or selling a home, feel free to reach out to me. I look forward to hearing from you soon.

 

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