With all the changes in the economy and interest rates, it’s hard to know exactly when is the right time to buy a home in Central Texas… Or is it?
(C)2006 HARRY HU
The truth is that the house you look at today will be gone tomorrow.
That home will also be more expensive. This is due to the low home inventory levels in Central Texas, the increased cost of building homes, and rising interest rates. Let’s show you the “why” behind the “what.”
With home inventory levels hovering at approximately two to three months, our area is at critical shortage levels. This indicates a strong seller’s market, but it’s still a great time to buy a home, especially if you don’t want to pay more for the same house in the future.
Let’s take a look at the cost of building materials: lumber prices have risen by roughly 22 percent year-to-date as a result of high demand and newly-imposed tariffs. Forecasts of other materials and labor predict a 15 to 30 percent increase over the next 12 months. This leads to increased housing prices due to higher home builder costs.
Lastly, it’s inevitable that interest rates will rise, especially as the economy improves. In fact, for every one percent rise in interest rates, you lose 12 percent buying power.
What’s the bottom line? If you’re considering buying a home, it is the right time. If the Prism Realty Team can help, we’re always here for you. Reach out to us anytime: (512) 609-8098 or Info@PrismRP.com.
