TEXAS — Buyers are firmly in control of the housing market, according to experts. Sellers are cutting prices and offering concessions to compete with new construction.
Evan Morales took advantage of the buyer’s market and bought his first home in Kyle, Texas.
“I was talking with my mom and my realtor, Amanda, and she was telling me, ‘Oh, it’s better just to buy a home… you’re going to be spending a lot more money renting a home, and you’re not even going to own it at the end of the day,’” said Morales.
His home was initially $315,000. He got it for $27,000 cheaper, even locking in a 3.5% interest rate — far below the average rate.
Amanda Ponce, Morales’ real estate agent, said new builds like the one he bought appeal more to new buyers like Morales. She said builders are locking in lower, more attractive mortgage rates.
“The builder can buy in bulk a lot of mortgages, and they’re able to offer interest rates at 3.5% all the way to 4.3%, give or take,” said Ponce.
According to Redfin, Houston is Texas’ strongest buyer’s market, followed by San Antonio, Austin, Dallas and Fort Worth. The research also notes rising insurance costs are affecting how buyers are willing to spend, particularly in coastal markets like Houston, which are prone to natural disasters.
“Personally, I just like newer things, and just this house alone was already pretty big as it is. It’s a corner lot, too, so that alone makes it a lot bigger,” said Morales.
Data shows well-priced, move-in-ready homes are attracting multiple offers.