Is the Fort Hood Real Estate Market crashing??

So, let’s talk about it, the reports are all around us, that the MARKET IS CRASHING!

The recession is coming they say. I am not here to talk about the big headlines or what is happening on a national level. A recession very well may be coming and it would likely not be a bad thing for the economy. See economies are CYCLICAL, they go up and down and it is a part of a healthy cycle… It cannot increase forever… Just as is real estate, it is a cycle. The goal is to not treat real estate as a SHORT TERM… If you are in it long enough the likelihood you WILL see a return on investment is HIGH.

So recently the feds hiked up interest rates, and they plan to continue to do so until inflation comes down and is more manageable.. that means the rates on 30-year fixed mortgages also went up…

Here specifically in the Fort Hood Market the past 2 years we have been SPOILED with 2-3% interest rates... That 5-7% rates seem ASTRONOMICAL, but can I be honest for a second? 5-7% isn’t really all that bad. It is pretty normal… Actually fun fact in the 80s we saw rates as high as 18% - and people STILL bought and sold real estate.

The issue is that not only have rates gone up, prices have continued to go up, I tried to tell many people that waiting for a “recession” didn’t mean saving money. See even if we see a dip in prices… It is still likely going to be more of a monthly payment than it would have been to buy at a higher price with a lower rate a few months ago… but THAT IS THE PAST... What is done is done.

So with these rate hikes, we have seen the SLIGHTEST slow down in our market (Bell & Coryell Counties) .. Let me put it into perspective for you… I listed a home in Harker Heights under 260K - we had 20+ showings in just a few days… But only 9 offers… I know saying ONLY 9 offers seems crazy… but 30-45 days ago, we would have seen 15+ offers… But now with the higher cost of monthly payments, I find buyers are being more selective.. they are not feeling as desperate… they are wanting to make sure they actually love what they are getting, unlike a few months ago, when they would take anything they had the chance too!

This specific house still sold 20K over the asking price… So the competition is still there, but it is getting a little less feirce..

So in my HUMBLE OPINION- No we are not crashing... We have the military always in and out of the area and SEVERAL major businesses coming to the Austin area…. so while I think we are in the process of a MUCH NEEDED correction... Praise God for that, but I do not think we are CRASHING…

If you are selling your home right now or planning to, do not expect 10+ offers 20-30K over the asking price … expect to list your house at the Fair market value and walk away with fair market value, possibly a little extra. Call me and we can discuss a plan to get you TOP DOLLAR for your home in this ever-changing market!

And for buyers, if the best time to buy was yesterday, but that is gone… that means the next best time is NOW…. We do not know what the future holds and we cannot change the past. So if you are financially stable, have savings, and have a relatively secure job… there is no reason to wait… If you are mentally, emotionally, and financially ready. Let’s chat about your game plan to make you a homeowner!

Talk to you soon!

Samantha Hammonds- Hammonds Home Team

214-210-9684

Brokered by eXp Realty