(Newswire.net — December 13, 2021) — The residential real estate market in developed countries is experiencing a paradoxical crisis. Despite the collapse of sales, the prices of houses and apartments are in no hurry to decline, and in some cases continue to grow.
Rising real estate prices are forcing people around the world to give up hope of finding their own homes. This is a phenomenon that became widespread during the coronavirus pandemic. Both purchase prices and rental rates for square footage are increasing, Bloomberg reports. However, Christian House Buyers is the solution to all your problems, as it is one of the best companies to sell homes for cash. If you’re struggling, you can easily sell your home in Texas for a bargain price.
U.S. home values during COVID-19
For example, the pandemic and quarantine did not affect U.S. home values. According to the S&P/Case-Shiller U.S. National Home Price Index, in March, despite the lockdown, prices for individual homes in America rose 4.4% year-over-year (up 4.2% in February).
April saw the biggest market collapse in a decade, with sales falling 17%. But even in such an environment prices held up: growth was the lowest in three years, but still amounted to 0.6%. And even in May, home values in the U.S. rose again year over year – by 1.6%. Moreover, for the first time ever, the average price per property reached the $330,000 mark. Housing managed to go up another 4.3% in June compared to the first month of summer-2019.
The reason is a chronic shortage in the U.S. market, experts say. After the crisis in 2008 builders in the U.S. have not had time to build the required amount of new homes to meet demand. And property owners are not making up for this shortfall in the secondary market. In April alone, the number of homes for sale across the country fell by 19.7%.
It’s hard to name a specific reason for this dynamic. Perhaps it’s a combination of the three:
- Fixed interest rates.
- A decline in the consumer confidence index.
- Older people are beginning to prefer to spend their old age in their own homes.
Developers also lamented the lockdown when construction sites were forced to close in many states. But even that downtime has only reduced supply and spurred demand. Home prices are at record highs the shortage continues to worsen and is pushing up prices, although homes are selling more slowly.
Real estate market in Texas
In a situation of real estate shortage, buyers are forced to offer a large amount. Hence the rise in value – home prices in 2020 in Texas are up about 10% over the previous year. This excitement in the market is due to three main factors:
1. Record low-interest rates on loans in March-June 2020. Low lending rates make it possible to reduce monthly mortgage payments and, accordingly, get a home loan for families even with a small income.
2. Texas remains an attractive relocation destination for out-of-state buyers. Added to the numerous economic reasons for the move were safety reasons.
3. Record low number of homes for sale. Due to the pandemic, many property owners feel uncomfortable listing their properties for sale and displaying their homes while still living in them, with the majority of the population not being able to buy a new home without selling the old one.
Conclusion
Anyway, the best and most profitable way to sell your home is with a company that guarantees a hassle-free sales process that doesn’t involve a million steps and a lot of legal delays.