Real Estate Question...

[150class]

What is keeping the real estate market up? Houses are still flying off the market in less than a week for asking and what not here in north Houston.

I know very little on the topic but was planning on buying a home this summer and was doubling down on it once all this craziness started as I was thinking rates and pricing were going to start dropping big time. Well it seems rates dropped but prices and days on the market have done nothing or gone in the opposite direction... I really thought with Corona and unemployment numbers the way they are the housing market would follow suit.

So, is the "housing market following suit" part still going to happen and its just later down the road or am I completely off base here? Could time of year be a major factor maybe and parents are moving for better school districts?

Looking for some TBH knowledge on the subject sense I am completely wrong.

[BrianL]

Rates dropped and people started seeing they need more space.

[slayr]

They’re selling decently quick up here, too. Has me puzzled.

[Bill]

Real Estate Question...

Rates are low and the people who are still working and making good money still buy homes.

Plus there’s a fear interest rates will raise if a Democrat gets in the White House.


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[dbrock63]

Super low % rates and many not listing because they believe the fake pandemic will hurt the sale of their home.

Low rates and limited inventory is keep the market values up.

[E.TX.BOWHUNTER]

Who wants money sitting in a bank loosing value? Buy up some property. Stocks are climbing and there is a lot of volatility in the market. Not a bad part of a portfolio.

[Landrover]

.....plus this is the high season for home sales. Low interest. Texas economy has cooled but far from cold. Corporate moves were already in progress as we see lots of activity in our neighborhood. Lag time on this was projected at 90 days. End of July will be a better barometer unless the government continues to prop up the economy with stimulus checks and additional unemployment payments.

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[chase15]

Were not going to see much downward mvmt in home prices, especially in the north houston area. As it pertains to new homes, we went into the pandemic with a lot shortage and with home builders and developers going on hold for a few months we are still in a lot shortage scenario coming out of it but with demand beginning to increase. With rates as low as they are now im not sure i would wait too long seeking a "deal" and letting homes pass you by if they are in fact in your price range. The fall is historically a little slower by demand terms so maybe some more motivated sellers will be on the market then. But if you are looking sub $300k in the woodlands/ conroe/ magnolia/ spring area get in line.

[jerp]

In many areas expensive homes still seem to be selling well. I guess rich people are still rich, and like Landrover said, there is still a lot of corporate relocation going on. A buddy of mine here in Ft Worth had his house on the market - listed at just over $1 million - and somebody moving here from North Carolina bought it without stepping foot in it until the day before the closing. Crazy!

[Randy]

The market I study is very active for an election year.

What I have noticed is people want out of the city due to the pandemic. Whenever the stock market gets volatile investors sink their money into something tangible. In 2008 there was a huge demand for 1,000+ acre tracts. I'm seeing the same type trend today. Interest rates are low and banks are wanting to lend money. That helps a whole lot.

[Throwin Darts]

Rates rates rates. Very few people pay all cash for homes. As rates decrease, the home price the person can afford goes up, all other things held constant.

Also the majority of the job losses were in sectors that weren't particularly comprised of a pool made up of your traditional home buyers.

[gvanwage]

I work for a Title Company in DFW and we have been seeing record numbers of Resale contracts and refinances coming through the door.
Here are some of the reasons why.
- Companies are still moving corporate offices to Texas from out of state every day.
- Interest rates are the lowest they will probably ever be unless we go into a world war or something crazy like that.
- Many buyers that dropped out of the market in past years because of growing home prices are coming back in to take advantage of the interest rates.
- Quarantine has made people's homes the focal point of 2020. If they like it, they are refinancing. If they don't like it, they are selling and buying what they do want with the extra money they have laying around from the vacations they have not been able to take.
- It is "Summertime" the hottest time of the year for buying or selling a home.

Sorry brother but I personally don't see Texas Real Estate prices falling any time soon. "SO FAR" the Texas Real Estate industry has been very fortunate compared to the rest of the country.

[dclifton]

In the same boat. Rates are great but cant find what I or the wife want!

[BuckRage]

Super low % rates and many not listing because they believe the fake pandemic will hurt the sale of their home.

Low rates and limited inventory is keep the market values up.

This... I am in middle of selling and buying now

[1riot1ranger]

[QUOTE=dbrock63;14920084]Super low % rates and many not listing because they believe the fake pandemic will hurt the sale of their home.

Low rates and limited inventory is keep the market values up.[/QUOTE

This makes sense. My son was trying to buy his first house in Pearland/Friendswood area and as soon as one hit the market it was sold, sometimes above asking. I thought it would be the opposite too! He found one that needed a little work but seller would barely negotiate. A lot of people were out of work but also a lot never missed a paycheck and with the stimulus bonus on top of that there was more expendable cash.