Are you looking to buy or sell a property in Texas soon? Have you been using sites like Zillow to research what the market is like around your home? If so, you’ll need to consider the most popular Texas housing market trends in 2022 and the prior year. For example, you’ll need to consider how the pandemic has impacted the Texas housing market and the average home prices in cities like Austin, Houston, El Paso, and Dallas.
Now, let’s take a look at Texas housing market trends in 2021 below.
Texas Real Estate Market in 2021
Mortgage rates, typical home values, and housing inventory are some of the factors to consider when looking at Texas housing market trends. According to the U.S. Census Bureau, more Americans have migrated to Texas in 2021 and a few years prior. This recent population growth is taking up more of the real estate property throughout this state.
For instance, Plano, Texas has become a popular place for many people to reside in. More homebuyers and renters moved into this region last year, so this part of Texas is trending for some of the hottest real estate properties.
The housing inventory or supply has declined throughout the second half of 2020 and into 2021. The demand for single-family homes also grew at the same time. By the third quarter of 2021, the median home value or list price in Dallas, Arlington, and the Fort Worth area grew by 18.3 percent. As such, a $300,000 house grew to a list price of $354,900.
Essentially, homes for sale have higher prices due to greater demand and more people moving into Texas. Even single-family rentals grew by an average of 17.1 percent year-over-year to $2,195 per month in the Dallas-Fort Worth region.
Forecasted Inflation of Real Estate in 2022
With inflation causing costs to rise for many products and services, the real estate market also changes due to inflation. We’ve all seen gas prices and grocery costs increase significantly in recent months, and the Texas housing market is no exception.
On a national scale, the real estate market prices grew by about 14 percent, with the median price of a home hitting nearly $354,000 in November 2021. However, home prices may not grow too significantly over 2022 since experts expect interest rates on mortgages to continue rising.
With higher interest rates, homebuyers having to pay more toward interest means they’ll have less money for monthly mortgage payments to pay off the overall home price. As such, house costs may not grow as much.
In Texas, the real estate market is booming, and housing demand continues to grow. The major cities in Texas, such as Austin, are expanding housing with more developers looking to build condos, townhouses, and apartments.
In Houston, the industrial sector is also boosting the multifamily housing market with high occupancy levels. However, the business district in Houston does have vacant spaces with the pandemic as a likely cause.
Texas Real Estate Price Forecast in 2022
Currently, the Texas real estate price in 2022 for a median home price is $267,523 in cost. While home prices saw a significant growth rate in the past year, the forecast for 2022 is that Texas real estate properties may slow down in terms of price increases.
With affordability and a growth in interest rates impacting the Texas real estate market, the typical realtor would tell you that home prices in 2022 are unlikely to grow much. Furthermore, Texas has seen a drop in inventory as demand has grown.
The drop in workers and costly equipment over the last couple of years have also impacted the amount of housing available. The forecast shows that material and labor costs may rise from 4 percent to 5 percent through 2023 or even later. Supply chain issues are also impacting the amount of housing available.
With fewer properties available, it only makes sense that the median sales price of real estate grew last year. However, due to affordability and demand for lower-priced homes, 2022 is unlikely to see much further home price growth.
Homeowners in Texas looking to sell their property in 2022 should work with their realtor to price their home that meets sellers’ affordability requirements.
Trends in House Selling by 2022 in TX
Predictions show that home sales in Texas are expected to drop somewhat in 2022, but they are still expected to rise above pre-pandemic levels.
More inventory is expected to grow throughout the year, which, hopefully, will provide more affordable housing throughout Texas cities like San Antonio, Austin, and Houston.
Furthermore, inflation will lead mortgage interest rates to grow to 3.7 percent in 2022. One survey polled housing experts and economists to show that median home prices are forecast to rise by 5.7 percent in 2022.
According to the poll, new homes sales are expected to grow to 920,000 this year, compared to 800,000 new homes sales in 2021. As such, homeowners at risk of foreclosures may have a greater chance of selling their houses quickly this year.
Furthermore, the housing experts polled predict that the housing market will continue booming in the Dallas-Fort Worth area. The sellers’ market expects to stay competitive, but buyers will likely have a better chance of finding a new home as the affordable housing inventory grows.
Remote work also allows younger home buyers to purchase their first homes and gain homeownership in any part of the country, whether it’s in Texas, California, or New York. Essentially, remote work provides more choices for homebuyers to find the right property for their needs with a better cost of living.
Average House Price Trend by 2022 in TX
Are you selling a house without a realtor? Then, you’ll need to consider the average house price trends in Texas and avoid using the prices of expensive home sales in TX. Only if your home is truly a luxury-style property should you price it as one of the more expensive houses in the state.
In north Texas, the real estate market saw double-digit home sale price hikes. Furthermore, compared to the prior year, Dallas house prices grew by 4.7 percent by February 2022. The median price of the typical Dallas home is $405,000.
On average, home sellers were able to sell their place after 21 days on the housing market in 2022, compared to 42 days in 2021. Yet, the number of homes sold in February 2022 dropped by 34 properties as compared to February 2021.
Furthermore, if you are selling your place in Texas and need to sell quickly, you may want to find cash home buyers, which will help you avoid the lengthy process of buyers obtaining a mortgage from a lender. Real estate investors and cash buyers often purchase a home in an “as-is” condition, meaning you won’t need to repair or remodel the property.
The housing market trends in Texas show that the real estate industry in this state should likely cool down a bit in 2022, compared to the skyrocketing growth in home sales in 2021. More housing inventory is being produced while interest rates are rising.
With greater inventory and growing interest rates, experts predict Texas home prices to plateau over 2022 and into the near future. New homes sales are also forecasted to rise. Nonetheless, home sale prices in Texas cities are likely to increase slowly this year.
These real estate trends should help you better sell your property in Texas.