Houston Area homeowners are getting messages from individuals and companies they have never heard of begging them to sell their home! Notes on their door, text messages and phone calls, and "junk" mail crowding their mail boxes. Why is this happening?!?!?
Freddie Mac says the country is 4 million homes short of demand. Laith Daik of Texas Loan Star says continued low interest rates and some American migration going on is keeping our demand up. "People are migrating from the West- and East-Coast to Texas and the South because of jobs, lower cost of living, lower taxes. Also - lower requirements on the Covid side as well! "
Daik says supply chain issues are slowing home building... And investors are adding to the demand. "Definitely see Hedge Funds that are coming into our market to buy homes to rent. And then we see smaller players who are buying, renovating and flipping!" All these factors keep pushing prices up.
Real estate prices rise as interest rates stay low...Daik says Houston's market has quite a few factors pumping up those prices. "There's just not enough people willing to re-sell. There are more people heading to Houston, trying to buy a home. There's just not enough inventory."
Daik says the high prices are causing home owners not to re-sell because a new house would be too expensive for them. But there's a tiny glimmer of hope. "Once we saw the lumber prices particularly begin to come down and some of the other prices normalize --- then some of the builders got back up and began some of the 'starts' again!" Still...according to Freddie Mac, Americans who want to buy a home out number available homes to buy by 4 million.