[New] Smith County data reports average home sales price $358,000

Home Sales Slow In East Texas

The chairman for the Greater Tyler Association of Realtors said the housing market at this time last year looked completely different, as interest rates and the price of homes continue to climb.

“Last year we had barely any inventory at all. Interest rates were low,” John Wampler told KLTV. “So, tons of buyers were in the pool ready to attack any house that hits the market. Right now with interest rates going up and up and up, we basically see that buyer pool has diminished.”

The November 2022 Smith County housing report compares data to November 2021. It shows the average sales price is $48,000 more than last year. That average sales price is at $358,000.

And according to Freddie Mac, the interest rate on a 30-year fixed mortgage is at 6.3%. Wampler said higher interest rates allow for more inventory to grow back.

Price Growth Slows In North Texas

Home prices in North Texas remained higher in the third quarter compared to last September, but the pace of price growth continues to slow, according to the Dallas Morning News in a report provided by Allie Beth Allman & Associates on its website alliebeth.com

The S&P CoreLogic Case-Shiller Index reports that Dallas-Fort Worth home prices rose more than 16% in September, compared with September 2021. But that’s also a drop from a 31% increase from April 2021 to April 2022.

Home prices across the country were up 10.6% in September, compared to September 2021, but down 1% from August. The September figures indicated three consecutive months of annual price growth decreases in DFW.

Houston Home Sales Take Big Hit

Houston home sales took their biggest hit of 2022, falling nearly 30% in November because of a combination of factors, including high mortgage rates and not enough inventory, Houston Public Media reported.

A new Houston Association of Realtors report shows sales in every housing segment suffered in November, including a nearly 45% decrease in homes priced between $150,000 and $250,000. Homes priced between $250,000 and $500,000 fell 27% last month.

A perfect storm of market conditions has led to a rough 2022 for home sales in Houston and across the nation, according to Houston Public Media. Mortgage rates have more than doubled since last year and home prices are still relatively high, which has kept more potential homebuyers on the sidelines waiting for better deals.

It's the latest sign the Houston housing market is normalizing after last year's record sales.

Houston renters earned 69% of the income they would need to afford a starter home in October, according to an analysis by real estate website Point2Homes.

Researchers considered "starter homes" properties valued in the lower third of all available homes for sale.

It matters, Axios says, because higher mortgage rates and housing costs are keeping homeownership out of the reach of many first-time buyers.

By the numbers: Renters in Houston earned a household income of $41,364 on average, while the income needed to cover a mortgage was $60,186, according to the study.

In September, a typical Houston starter home cost $196,661, the study found, analyzing Zillow data.

DFW Home Prices Plummet

Home prices in the Dallas-Fort Worth Metroplex have plummeted, with median prices down six figures in some cities, as buying slows amidst interest rate hikes, wfaa.com reports. With mortgage rates hovering between 6 and 7 percent, buyers are gawking after 2-to-3 percent rates that set the market on fire.

DFW homebuyers who've purchased homes in the past couple of months have seen a stark contrast from this time last year or even eight months ago.

Cathy DeWitt Dunn, president and CEO of DeWitt & Dunn Financial Services, said this cooler market offers different opportunities for buyers.

"We were paying perhaps 30 to 40 percent more on a house, we're having constant bids," DeWitt Dunn said. "People were writing letters with their family's intent and explaining that they're going to stay there forever and just hoping to get selected."

Now, buyers are able to navigate the market without the pressure to outbid dozens of other buyers, and houses are staying on the market for longer.