Low mortgage rates have kicked off a buying frenzy across Texas as home prices continue to rise after an 18.6% year-over-year increase in 2021. With tighter competition and declining inventory, first-time buyers are struggling to stay afloat, and some are backing out of the housing market altogether.
As affordability pressures mount across cities like Austin, price growth is steadily decelerating, but sellers still have the upper hand. Some are refusing to make major home repairs or accept offers including down payment assistance, and bidding wars are becoming more frequent and more intense. In October 2021, 68.4% of total offers in the Dallas market resulted in bidding wars compared to 53.3% one year prior.
Moni Loa knows all about bidding wars. She recently put her McKinney, Texas, house on the market, received 25 offers, and sold within 48 hours for $90,000 over asking price.
Now Loa is on the hunt for a new home, but thinks buying has become too aggressive in Texas and is considering big moves.
"We downsized and are renting now. We're going to see if the market levels out," Loa said. "If not, it might not be a bad idea to start looking outside of Dallas-Fort Worth or even outside of Texas."
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