If you're thinking about buying a new home in Texas, there's some good news for you. Zillow, an online real estate platform, says this fall could be a fantastic time for new homebuyers. Here's why:
- More Motivated Sellers: Zillow's experts found that more sellers are eager to sell their homes. They are even willing to lower their asking prices to attract buyers. In fact, around 10% of home listings had their prices reduced in the week ending September 16, which is the highest percentage in nearly a year.
- More Choices: If you're picky about your dream home, this fall might be your sweet spot. There's a wider range of homes available for sale, giving you more options to consider.
However, there are some challenges:
- Rising Prices and Mortgage Rates: Home prices have been going up because there aren't enough homes available, and mortgage rates are higher than they've been in a long time. The average 30-year fixed mortgage rate is at a 23-year high of 7.31%.
- Why Are Prices Dropping? The increase in price cuts might be because buyers are being careful, and some sellers may have initially asked for too much money.
- More Listings: There were more homes listed for sale in August compared to July, which is unusual and could be a sign that the shortage of homes for sale is improving.
- Mortgage Payments: Be aware that mortgage payments have gone up. In August, the average monthly mortgage payment was $1,896, which is 18% higher than the previous year.
Despite these challenges, the U.S. housing market has grown a lot. Zillow reports that the total value of all U.S. homes has increased by about 50% since before the pandemic in January 2020, reaching nearly $52 trillion.
So, if you're prepared to handle the higher mortgage rates and navigate the changing market, this fall could be your chance to find your dream home. With more motivated sellers and a bigger selection of homes, it's a great time to consider making your move.
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