Central Texas Housing Marketing coming Crash / Recession - Video
Hear me out, I am not an economist or anything like that, but just looking at a few indicators, I personally do not believe that even with rising interest rates, we will see a crash or a major correction. I do think we will see A CORRECTION, but I am not confident we will see a correction that causes prices to DROP…
So here in the CTX market, specifically around Fort Hood, we are LOW in inventory. We do not have enough houses for the number of people who need a home to live in.
So with our current population, we are short on houses, and they cannot seem to build them fast enough, but to top it off, we have major businesses moving into the Austin area including….
Tesla
Google
Amazon
Space X
Apple
Canva
Oracle
Facebook in Temple Texas.
Just to name a few… So this means MORE people moving to the area. Now while many may settle IN AUSTIN, It is HIGHLY LIKELY many of them move to the Killeen/Harker Heights/ Temple / Belton area due to more affordable housing options.
So all this is going to create more of a shortage even as buyer demand slows a little due to the higher interest rates and cost of living going through the roof for many of us!
Now you may think… Just rent for now, well that is fine if it is the best thing for you but rents right now are just as high or maybe higher than a mortgage, because the demand for rentals is also up. It is not just the buying market that is competitive, rentals are just as hard to come by. So it creates this vicious cycle, people will want to rent or actually NEED to rent causing demand in the rental market pushing people into the buying market which causes high demand pushing them back into the rental market.. and so forth.. it is a catch-22..
Not to mention, Fort Hood has the military ALWAYS coming in and out.. we have a constant cycle of people selling and buying houses. Fort Hood itself DOES NOT have enough housing on post to provide to all their soldiers and their families. Some even call it an “unburstable bubble".
Now at SOME POINT, the income in this area cannot sustain a certain price point, so we will have to see it begin to LEVEL OFF. I do not believe we will see prices DROP dramatically like many are hoping for… But we do not know WHEN or WHAT will cause that leveling off to happen. I am HAPPY TO SAY we are seeing a slight slow down… Instead of 2 days houses are taking 2 weeks to sell. But we are still seeing multiple offers in many cases, especially under the $250,000 price point.
So what is my suggestion? If you are financially, mentally, and emotionally READY to buy, then now might be the best time, even if the mortgage is more than you would “like” to pay., because remember, rent is 100% interest, and there is no rate of return. You are giving away your money.
Please know my heart, my husband and I rented for the past 10 years because we COULD NOT and were not ready to buy a house. It was not our time, and if that is you right now, that is FINE, but I do think you should get on a plan and make a goal to OWN a home, which is currently the best way to build long-term, sustainable wealth. We probably could have bought a house 2 years ago if we were just smarter with our money and had a plan, but instead, we wasted a lot of time... and honestly, it is fine, we are homeowners now…
But we have to get used to this new normal. Waiting for prices to fall and rates to drop is like wishing on a star. It COULD happen, but we do not know when or if it will happen. remember you can always TRY to refinance if interest rates do come down, but as it sits, feds are saying they are only going up for now.
We cannot predict the future, we only know what is RIGHT NOW, we cannot go to the past, so let us focus on NOW, what can you do right now to make sure you have a roof over your head because that is what matters.
I hope this video/article helped you and if you need anything please let me know!
As always, “whatever you do, do all that you do as if working unto the Lord.”
Samantha Hammonds
Hammonds Home Team - eXp Realty
214-210-9684