Are More Houses Coming to the Houston Real Estate Market?

If you’ve been looking for a home recently, then you already know 2022 is an unprecedented year for the Houston real estate market! Simply put, there are a lot more people trying to buy a house than there are houses. With demand far outstripping supply, we’ve seen sky-high real estate prices, vicious bidding wars, and frustrated buyers all over the Greater Houston Area. 

Will it ever end?

Well, the fastest way to calm down this crazy Houston real estate market will be to increase the supply of available housing. There’s good news on that front! Historically, we see the most new and resale homes hit the market in the summer months, and we expect the same this year.  

Related: 6 Steps to Prepare for Home Ownership

The bad news is, the houses arriving on the market this summer probably won’t be enough to meet demand and allow soaring Houston real estate prices to come down significantly. Houston is simply a hot real estate market, and lots of people are willing to pay a premium to buy a home here. In addition to that, mortgage interest rates are also on the rise—ouch! 

That doesn’t mean more houses coming to market won’t be great for prospective buyers, though. Relieving some of the supply shortage will benefit home buyers in Houston in three important ways: 

1. The real estate bidding wars should calm down. 

The fierce competition between home buyers in Houston has led to some truly crazy bidding wars on houses. Angel Fultz Realty has sold homes in the last year that had as many as 20 bids submitted! In order to beat out 19 other buyers, you have to be willing to pay way over list price. When more homes hit the market this summer, there should be enough housing stock to help buyers avoid crazy bidding wars on every home. Bidding wars may still exist this summer, but additional supply and increased interest rates will reduce the number of buyers bidding on any one individual property. 

2. Your odds of winning a bid will increase.

With more homes to go around and fewer bidding wars, every buyer’s odds of finding a home and submitting a winning bid will go up. Buyers will still need to be aggressive with their bids, but there should be less competition as the supply of houses increases. That means home buyers in Houston should have to submit fewer bids on fewer houses before they’re able to submit a winning bid. 

3. Houses’ list price will be closer to the price you’ll actually pay.

Right now, a house’s list price in this market is more like a starting bid. In almost all cases, the house will end up selling for more than list price because the demand for houses is so high and the supply is so low. With the supply of homes increasing this summer, fewer houses will sell above list price since there will be more homes to go around. This should help buyers avoid overpaying as egregiously as they are right now! 

Related: Why is Rent So High in Houston?

Make no mistake, Houston is going to be a tough market for both buyers and renters until the housing supply and demand here begin to even out more. But at least there is some relief in sight! If you’re struggling to find the right home for you, we can help. Angel Fultz Realty offers friendly, positive customer service to help home buyers successfully navigate the challenges of the Houston real estate market. Contact us today—we can help you, too!