Tag: Interest Rates

17
Oct

Housing Boom in Texas


Gourmet Kitchen at Red Hawk Gourmet Kitchen at Red Hawk

It’s a good time to buy a house — a really good time to buy.  Bloomberg released an article last week (click here to read the full article) describing the building boom in Texas.  It’s bigger than anticipated.

So, what does a big housing boom mean and how does it affect you, the home buyer?

1.   A big housing boom is great for the Texas economy.  The housing boom has been brought on  by an ever-expanding population and continued increases in employment, much of which is due to relocating businesses.  Texas is a great place to be economically-speaking.

2.   A housing boom causes a reduction in the supply side of housing.  Bloomberg reports that in the Dallas area there is a 2.8-month supply of inventory houses, which is about half of equilibrium between sellers and buyers.

3.  Home prices are on the increase.  According to Bloomberg, “existing-home prices in Dallas and Houston are rising faster than at any time since the oil boom of the 1980s.”  This is great for current home owners looking to sell.  It is also a big incentive for those looking to buy a new home; now is the time to buy before prices increase further.

4.  Mortgage interest rates have increased in recent months to help balance out the supply-demand issue in Texas housing.  Rather than slow down the buying side, buyers have picked up the pace thinking they need to buy now before interest rates rise again.

The bottomline is that now is the time to buy

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.  With an increased demand for housing and mortgage rates on the rise, this is a great time to upgrade the quality of your home.  You will likely be able to sell your existing home quickly and you will save for years to come with interest rates in the 4% range, all while improving the quality of your life with a new home.

Come see RED HAWK.  Lots are going quickly, but we still have several options for you!

 
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