The housing market is a bright spot nationally in an economy ravaged by the coronavirus, and North Texas is no exception. A housing report released in mid-September 2020 shows the area’s August home sales rose 11 percent from the previous year. More than 12,000 single-family homes were sold for the month, the most ever sold in August.
Although August numbers were down from July’s record 13,504 home purchases, July and August together made up for housing activity declines earlier in the COVID-19 pandemic, according to a Texas A&M University Real Estate Center report. Overall, 4 percent more homes have been sold in North Texas in the first eight months of 2020 than in the same timeframe in 2019, which is notable considering that 2019 set a new record for total sales.
Low interest rates continue to drive the housing market both here and across the country. With the Federal Reserve signaling that the country’s key interest rate will remain at or near zero for at least three more years, it’s likely that mortgage rates will remain low as well.
Median home prices have surged along with sales, as the supply of homes for sale is not nearly enough to keep pace with demand. There were 45 percent fewer homes listed for sale this August compared to a year ago, the lowest level of listings North Texas has seen in 20 years. August’s median sales price of $292,000 was up 9 percent from last year and is approaching an all-time high. The combination of the home shortage and low interest rates could push prices even higher and make for an extended housing boom.
“The last few months, there has been a bigger move toward the higher-priced market,” said Dr. James Gaines, chief economist at Texas A&M. “People have an opportunity with low interest rates to get a bigger house. That’s caused the average and median prices to come up.”
Whether you are a first-time home buyer or an experienced real estate investor, you’ll want to make sure you don’t get taken advantage of during your home purchase or sale. Protect yourself by consulting with an experienced residential real estate lawyer.
Hayes, Berry, White & Vanzant, LLP maintains a vibrant real estate law practice, with attorneys who serve communities throughout North Texas. We handle all aspects of real estate transactions from contract negotiations through closings. With offices in Denton, Flower Mound, Gainesville and Celina, our lawyers are never far away. Call 940-230-2386 or contact us online anytime to arrange a meeting.
