The Texas housing market has been unexpectedly robust in 2020, Real Estate Center data show.
“Perhaps because of the strong association with the last major recession, ignited by the mortgage market collapse, many expected residential real estate to fall flat on its face,” said Center Senior Data Analyst Joshua Roberson. “But so far, that hasn’t happened.”
Third quarter data are showing skyrocketing home prices. Some markets, such as Austin, were already on the upward trajectory before the pandemic, while others turned upward afterward.
Regardless of area, Roberson said the common denominator is that home prices are growing exponentially.
If the previous concern was market fallout, the new concern is what the new equilibrium point will look like.
“Even with favorable mortgage rates, the market will be able to absorb only so much price growth,” Roberson said.
The housing market is still recovering from the imbalances brought on by COVID-19, particularly on the supply side of the equation.
For the time being, fourth quarter home sales look like a potential record buster. Typically, activity tends to slow down as the holidays come around, but this trend is not seen this year. Pending listings are uncharacteristically high.
“If these sales follow through, real estate professionals throughout the state are likely to have a merrier holiday season than they thought possible just a few months ago,” Roberson said.
Source: Real Estate Center