Signs of cooling in the housing market, supply shortages to persist
Tirios is currently active in the Texas market. The days on the market stands at 23 days in Texas. This is approximately 40% lower than pre-covid days, when the number was 39 days, and is 8% lower than July 2021, when the number was 25 days.
Elevated interest rates have undoubtedly had a direct impact on the number of qualified mortgage applicants in recent months, resulting in a slight slowdown in market demand. On the supply side, many of the homeowners who were thinking about selling are currently locked into historic low interest rate mortgages, and it may appear that they have decided to postpone their sale decision for the time being. The effects of the ongoing supply shortage are still visible on certain building materials, lowering the likelihood of excess new home inventory entering the market anytime soon.
According to HouseCanary: the nationwide median days on market (which is measured from the date of listing against the date when a home goes under contract) stood at 29 days. This is down 6.5% from where it was one year prior at 31 days on the market.
It highlights the market forces currently at play, and while the days of receiving 50 offers on every single home are over, buyers are still facing fierce competition to secure the limited available supply on the market.
Please contact our team at firstname.lastname@example.org if you would like to access data related to any specific locations or learn more about how Tirios is leveraging advanced analytics and AI-models to evaluate investment opportunities.
Photo Credit: Scott Brundage, NYTimes