Prices are rising for first-time home buyers. Chief Economist for Stewart Title Ted Jones says people who are living in small rented places and working from home are ready to get out and buy a house...and it makes financial sense...just do the math. "At 3.21% interest you can make a principle and interest payment on a 200,000 dollar house for $870. The average rent in Houston is $1,118.!"
But Jones also says inventory is low here. "In Fort Bend, Galveston, Harris and Montgomery Counties: There is just NOTHING left for sale!" He does exaggerate...but even with current low interest rates, the tight inventory makes it a sellers' --- not a first time buyers' --- market.
Renters Paying Over a Third of Their Income
Jones says normally this market holds 6 months of inventory, but now it's just over 1 month. Mortgage rates this low will allow prices of houses that are now under 200 thousand dollars to go up.