After two years of a red-hot market, many sellers have cut prices to try to lure buyers who are facing higher mortgage rates, bloated home prices and inflation. That’s a sign that buyers are starting to gain an edge.
That’s a significant shift from the height of the pandemic when historically low mortgage rates and a shift to working from home drove buyers, many of which were millennials who had postponed becoming homeowners, to snatch up houses so fast that the state’s supply plummeted and home prices rose an average of 28% between the start of the pandemic and the end of 2021. Since the Federal Reserve began raising interest rates in the spring to try to slow rampant inflation, pushing mortgage rates higher too, the trend has begun to reverse across the state.
Something also to consider in the coming months will be how the Midterm Elections of 2022 affects the market trends. A divided congress is usually the best for all markets, as gridlock on Capitol Hill provides a stable backdrop for the economy. However, if one side gains or maintains control of both houses of Congress, that party’s long-term agenda can have an impact on prospective buyers’ abilities to purchase a home.
To find out more about the Central Texas real estate market, go to my website at https://jimgarveyrealtor.com/ You can also contact me with any questions through my website. I will be happy to answer any questions you may have. Have a great week everyone and we’ll see you at the bank!