The resilience of The Lone Star state is alive and well as the state is rebounding from the previous downsizing of many energy companies and oil price fluctuation. Today, some major markets are trending to a seller’s paradise. With lower inventory driving prices upward and more buyers in the market, this may be a great time to consider selling.
San Antonio saw homes sales increase 4% in April over last year’s figures. The prices for homes also increased by 6% over 2015, with the average number of days homes were on the market hovering at around 60 days. The good news is people are buying, and mortgage rates are holding at historically lower rates helped with new regulations governing loan qualification.
More good news, Houston experienced an increase in home sales as well; the highest level of increase since December 2007, according to CNBC. Houston is beginning to reflect a resilient market poised for growth particularly in the more moderately priced home market with help from the infusion of the millennial buyer.
Dallas is also moving to a more balanced trend but still riding the tide of a seller’s market. Inventory for homes offered dropped 21 last month creating a rise in prices but not any diminishing desire on the part of the buyer to reserve entry into that market.
The Federal Housing Finance Authority (FHFA) released reports that interest rates on conventional purchase money-mortgages increased from March to April. Freddie Mac concurred fueling further speculation that the FED may make a summer move to raise rates. According to Sean Becketti, Chief Economist at Freddie Mac, “U.S. Treasury yields moved up in response to the Fed minutes release, which kept alive the possibility of a summer rate hike. Mortgage rates followed, with the 30-year Fixed-rate Mortgage increasing six basis points to 3.64 percent. Despite this increase, May ends the month averaging only 3.60 percent, one basis point below April’s average, and the lowest monthly average in 3 years. Home buyers are taking advantage of these historically low rates with April’s new-home sales increasing by 16.6 percent, the fastest pace since January 2008.”
All of these indicate buying might be advantageous in front of the speculated FED rate hike. The trends also lend credence to a rebounding Texas real estate market dispelling earlier notions of a housing bubble. The case for there not being a housing bubble in Texas is rooted in the measures that are in place in the lending market assuring more equitable debt to income ratio and providing more qualified buyers becoming active in the market.
Texas Section 50(a)(6), Fannie Mae announcement SEL-2016-3 and the new forms rule enacted in October 2015 work in tandem to provide the consumer more protections and to provide the market more protection in determining buyers can afford the homes they buy.
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If you are considering buying of home in Texas, we’d love to speak with you about financing options. We offer a variety of home loan programs to meet the needs of most home buyers. Give us a call today to for a free. no obligation consultation – (972) 591-3097.
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