The housing market usually gets hammered during a recession, but the COVID-19 downturn has done the opposite.
At a time when life has slowed down, it turns out people in North Texas are moving faster than ever, according to Julie Lynch, associate director of Weitzman Institute for Real Estate at UT Dallas.
“Everyone's home, the kids, the grandparents, and they're realizing that their home just can't accommodate their current needs and so it’s continuing to drive the demand up,” Lynch said.
Demand, Lynch said, is higher now than it was pre-pandemic.
Sales remain strong, too, with existing homes staying on the market an average of 2-3 weeks before they're sold.
“The ironic thing is that, at the same time, we have 20-30% less supply on the market right now,” Lynch said.
Why the low supply?
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Lynch said homeowners may be uncomfortable selling in the current economic environment.
Then there's the limited supply of materials to make new homes that are selling as fast as they're built.
“The demand for new housing is not currently being met by the pace of construction,” Lynch said.
With record-low interest rates and many people now able to work from anywhere, Lynch said North Texas is also seeing another trend: Buyers from out of state flooding the market.
“We're really picking up where we left off pre-COVID,” she said.
Bottom line: North Texas remains a seller's market, one constant in a time of so much uncertainty.
Lynch said home values continue to rise in North Texas at an average of 2 to 3%.
