Northeast Texas Real Estate Outlook
Alta Terra Real Estate
It’s no secret that timing the real estate market right is difficult to do. In ideal conditions, you would have a great credit score, cash available and on hand, there would be plenty of inventory on the market, and you would be able to offer less than the asking price and still win the bid. Amazing.
Unfortunately, that’s not always the case. Since 2020, we have seen the North Texas real estate market not only rebound back to where it was before the pandemic, but we’ve seen such a sharp increase in demand that the inventory can’t keep up. With more demand and less inventory, that means prices have risen and the market has gotten extremely competitive, leaving some buyers making offers for months without winning a bid.
So, what does that mean for you? A couple of things. If you’re a buyer, be patient throughout the process and expect to run into tough competition as you look to make an offer on your dream home. As a seller, home values are as high as they have ever been and buyers are ready to make offers - not a bad spot to be in.
Here are some important things we think you should know about the Northeast Texas real estate market and what it will look like in 2022.
People are flocking to more rural areas
Starting in 2020 with the COVID-19 pandemic and continuing to today, people are leaving downtown areas as fast as they can and finding property/land in more rural parts of the state/country (this is true across America). This is true for a few reasons. Because so many offices shut down in 2020, more people are working from home or working remotely now more than ever. With the freedom of not having to commute to the office each morning, the options of where you can live increase exponentially.
Another reason people are flocking out of major cities is simply that real estate prices have gotten too high. Those who could afford to buy in pre-pandemic conditions are now finding that they have a hard time even being competitive with buyers who are offering cash over asking and waiving certain aspects of the process, like inspections and contingencies.
All this to say that the Northeast Texas real estate market is as competitive as anywhere in the state because of the large movement of buyers out of major cities and urban areas.
High prices are here to stay (at least this year)
If you’re a seller, this is great news. Low market inventory with a ton of demand is the definition of a strong seller’s market. If you’re a buyer, this can be intimidating. Take a look at the map below to see just where prices have increased the most.
Real estate prices are certainly determined by simple market conditions, such as high demand, but they are also affected by the Federal Reserve and what they decide to do with interest rates. Coming out of 2020 and the heat of the COVID-19 pandemic, we saw interest rates at their lowest point in over 30 years. This encouraged people to get out and make big purchases, like buying a home. Now, as the Fed slowly increases
interest rates throughout the year, the market should slow down a bit. But at least for now, high prices are here to stay in 2022 (but that doesn’t mean all hope is lost if you’re a buyer).
Work with someone you trust and be patient
One of the most important things you can do as a buyer or seller in today’s real estate market is to work with someone you trust. With so many factors going into pricing, demand, offers, and availability, working with someone who knows the market and will be your personal advocate is huge.
If you’re a buyer, patience is a must. More than likely, you’ll have to make a few competitive offers before you score your dream home. Work with your realtor to find ways to set yourself apart from the competition - write a letter telling about yourself, include a photo, and waive certain parts of the buying process to stay competitive.
Either way, the Northeast Texas real estate market is hot and looks to stay that way throughout most of 2022 and into 2023. If you have questions or want more information, you can give our team a call at (903) 438-2585 or visit our website here.