Top 3 Questions to Ask Before Buying a Home in Today’s Market

We’ve all spent the past few years riding through waves of ever changing political and economic landscapes in addition to a global pandemic. Throughout all of that, many of you have also tackled the task of saving, investing, and budgeting your way to purchasing a home only to find yourself asking the question: is now still a good time to buy a new home?

There are many personal and economic factors that go into your homebuying journey. We’re here to answer a few of key questions and shed some light on your path to home ownership.

What makes Texas different from the rest of the country?

While coastal cities in California and New York are seeing their housing markets cool, Texas remains a top destination for homebuyers, with Dallas-Fort Worth and Houston among the top real estate markets in the country. The lack of state income tax is just the cherry-on-top of what continues to draw people to the state. Employment growth and booming local economies in Dallas, Houston, San Antonio, and Austin keep Texas’ housing demand high as one of the top relocation destinations in the country for people and businesses. Major corporations including Amazon, Oracle, and Tesla continue to see Texas as a friendly place to bring their headquarters, breathing more jobs and talent into an already energized economy.

The bottom line: If you’re already here, take advantage of the economic and job growth! If you’re on your way here, let us know how we can help find the right home for your needs.

Will the real estate market crash?

A quick glance at news headlines show that many are concerned the current market volatility is showing signs of a housing bubble reminiscent of the 2008 crash. Don’t let headlines send you into a tailspin – we’re not in the same world we were back then. Here are key differences between now and then that provides more context to where we are today.  

The bottom line: Predatory lending, loose loan criteria, and shady underwriting practices were largely responsible for the 2008 recession’s millions of foreclosures and reduced home prices. Today’s homeowners and borrowers benefit from record levels of equity and safer, smarter mortgage loans. You’ll risk higher interest rates and price increases waiting for a bubble to burst, especially one that will not persist or may not exist.

Will home prices come down if I wait?

A combination of factors, from low inventory and high demand to supply chain issues and rising interest rates all contribute to higher home prices across the board. During the pandemic, factories and production shut down for numerous house components, particularly lumber. Though supply chains have been leveling out, these issues slowed construction, which contributing to the housing shortage we are still feeling today. Additionally, whether they purchased a home or refinanced, many of the homeowners that took advantage of the historically low interest rates are less incentivized to sell their current home, which further reduces home availability. While a housing inventory of approximately 6 months is considered a balanced housing market, Texas’ inventory is currently hovering around 1.5 months. This shortened inventory is coupled with relatively high demand – particularly since the millennial demographic has entered their prime income-earning and homebuying years.

The bottom line: Higher building costs due to supply constraints, heightened demand, and unbalanced housing market have caused prices to rise. Once supply increases and demand falls, price growth will slow, not necessarily drop.

No matter where you’re at in your homebuying journey, we want to give you the confidence to take the next step that’s right for you. With our team of experts, library of information, and selection of smart choices, HistoryMaker Homes has been here since 1949 to be your guide and resource – so what other questions can we answer? Reach out to us on Facebook, Instagram, or contact us here to get connected with a new home expert.