TYLER, Texas (KLTV) – The pandemic has caused the housing market to break records with some of the highest prices realtors have ever seen. With interest rates still on the rise, it could be years before the housing market comes back down.
John Wampler is with Realty ONE Group Rose in Tyler. He has been in real estate in Tyler for eight years, and he said when he started, the average price per home was around $140,000.
“It has just been skyrocketing over the years. Last year, the average price from 2020 went from $270,000 sold, and this year, the average price is $304,000,” Wampler said.
The pandemic brought with it a drop in interest rates. Wampler said because of this, renters became buyers, buyers and investors had more buying power, and they flooded the market.
“A lot of the people who are coming in from out of state have cash. When they’re selling properties out in California and then come here, that equates to a lot larger property, and they have cash to move, so they can win over the properties,” he said.
Those having a problem right now are the ones that are financing. Wampler spoke with a financial expert a couple of years ago.
“He was saying this is all unprecedented because of the pandemic, but he was expecting this to last for five years, and that was two years ago. Right now, something that’s going to correct it is something major in the market,” he said. “Interest rates need to go back up to a normal value to cool off some of the buyers. I think this year will be another mirror of last year.”
Wampler said a healthy real estate market has about eight months of inventory. Right now, they are working with about 1.2 months of inventory, so there aren’t many houses on the market, but they’re getting bought almost as soon as they come out.
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