The summer housing market was a hot one in the North Texas area, and although it appears to be cooling off along with the high temperatures, that isn’t necessarily a bad thing.
The Dallas Morning News reported that rising mortgage rates and stricter loan standards are putting downward pressure on rising home sales and prices. However, this development has helped offset a summer that saw skyrocketing home sales, prices and a diminishing inventory as a rampant seller’s market emerged.
Jed Kolko, economist at Trulia, was quoted by the news source as saying that due to the unbalanced growth seen by the housing market over the summer months, some downward pressure on growth will help slow the rising prices and avoid another housing bubble.
Kolko added that new lending standards will tighten mortgages, but that will free up more financing dollars for qualifying home buyers.
The housing market in North Texas is especially volatile with the news source reporting that sales of pre-owned single-family houses in the region are up 20 percent this year, compared to the rest of the nationwide where sales of this type of home is up 12 percent.
“These high rates of increase in sales and prices were going to cool off any way,” James Gaines, an economist with the Real Estate Center at Texas A&M University, told the news source. “I think it will be gradual.”
Although mortgage rates, which up until earlier this year were well below the 4 percent mark, are now creeping up close to the 5 percent mark, that doesn’t mean that new home buyers are all being saddled with high interest home loans. In fact, borrowers with the necessary qualifications can still obtain affordable mortgages as much of the mortgage rate data is based off national averages.
Regardless, there is plenty of ripe housing opportunities in the North Texas area. In Stephenville, the market remains fruitful so if you’re interested in Stephenville homes for sale, contact us today to learn more.