The cost of homes in Texas is skyrocketing and that's making it even harder for homebuyers to find a home.
If you’re thinking of buying a home in Central Texas right now, you’ll quickly find out that it is truly a seller's market.
A lack of supply that is not meeting demand is driving the price of houses in Central Texas up dramatically.
”Buyers are in a tough situation right now because of the lack of inventory. Bless their hearts, it’s tough out there to win. We’re seeing a lot of multiple offers right now,” said Shelly Salas, a Real Estate Broker with Your Home Sold Guaranteed Realty.
Homebuyers are seeing upwards of 10 or more offers to compete against, increasing the chances of being outbid by another buyer.
”They see the listing price of the house and put in something, I don’t know, five to ten percent over and think they’re going to get it. Next thing you know by the end of the day there’s another five offers and it sells for 20 to 30 percent over asking price,” said Dr. Rob Tennant, Interim Department Chair for Economics, Texas A&M University-Central Texas.
Local Real Estate Brokers said this is a constant battle for their clients. Some clients even offering over $100k above the asking price.
”A house was on the market for $500,000. Our client offered $140,000. So, he went $640,000 and we still lost,” said Salas.
The high price of homes due to a lack of homes to buy is a trend economists expect to last for years to come.
”A shortage of housing, it may take five or more years for supply and demand to level out to equilibrium. So, based on that, it could continue for an extended period of time,” said Dr. Tennant.
Experts are urging buyers not to give up, but rather to be patient and make sure you have the right person working to find you a home.
”Someone that is your fighter. That is looking out for your best interests. So, this way they can think outside the box and figure out a way to help you win that multiple offer situation.” said Salas.
Buyers are also having to cover expenses like closing costs that the seller would normally pay. Those extra expenses add an additional 3% on average to the cost of the home.