There’s no doubt about it- the real estate market is thriving like never before, and nowhere is experiencing the craze quite like Texas. According to a Zillow Report, Austin ranks once again as the nation’s hottest housing market, maintaining its leading spot since 2020.
But Austin is not the only city that’s witnessed wild success. The Texas housing market is booming statewide, with home values increasing 24.7% annually, as disclosed by the Texas Quarterly Housing Report. In the second quarter of 2021, median home values peaked at $300,490.
Still, growing prices are only half the effect of a hot market. With rapid increased demand comes low inventory, and homes now typically stay listed for a little over a month. Considering that in a balanced market properties remain available for an average of six months, it’s easy to understand just how booming the Texas housing market truly is.
What Caused the Texas Real Estate Boom?
The perfect storm caused the Texas housing market to explode. It’s multi-faceted success is largely due to the following factors:
It may seem ironic, but the Lone Star State’s reasonable housing values are exactly why affordability is becoming increasingly out of reach. Despite the growing competition of the Texas housing market, families continue to migrate south as they’re progressively priced out of expensive states like California. Unlike the high-cost coastal regions, Texas keeps the American dream of a spacious suburban home and big backyard attainable (for now).
Families aside, an influx of major companies recently moved to the state, bringing with them ample employment opportunities and even more incentives for people to pack their bags and head south. In fact, Houston now ranks third among US metro areas with the most Fortune-500 companies. Some of the most noteworthy new additions across the state include Hewlett Packard Enterprise, Tesla, Apple, and Oracle.
The pandemic pushed people out of offices and into their homes. As the work-from-home trend skyrocketed, many had a newfound freedom to sustain their high salaries while relocating to warmer, cheaper locations- just like Texas. Not only did this cause an uptick in demand, but it pushed bids infinitely higher as interested buyers competed against wealthy individuals seeking to keep their jobs while working poolside under the Texas sun.
How Can You Capitalize on the Thriving Texas Housing Market?
It goes without saying that this hot market is in the seller’s favor. It’s a smart move to sell your house in Texas while the economy is booming, but there are ways you can leverage the market to maximize your sale. Consider making minor adjustments to increase aesthetic appeal, asking for a reasonable price in line with your neighborhood, and assessing your bids rather than immediately accepting the highest offer.
We advise investing in a real estate agent to help you navigate the process. Otherwise, for a speedy, stress-free home sale, consider calling us at United Home Offer.
What Does the Future Look Like for Texas?
What goes up must eventually come down, right? While the frenzy doesn’t seem to have an end in sight, many still wonder, will the bubble ever burst?
As of now, the answer is no. And while prices can’t go on soaring forever, a crash isn’t on the horizon, either. Forbes predicts that as mortgage rates rise due to inflation, possibly within the next year, things will finally start to slow down.