Will Home Prices Fall in Houston This Year?

The unprecedented sellers’ market in Houston has a lot of homebuyers asking, “When will home prices fall?” Well, if you’re looking to buy a house in Houston before the end of 2022, we’ve got some good news and some bad news for you.

I always like to start with the bad news, so let’s get into it!

Will home prices fall in Houston in 2022?

The bad news for buyers is that home prices will almost certainly not go down this year. It’s a simple issue of supply and demand. Lots of people want to move to Houston, and there currently aren’t enough houses for everyone who wants one. At some point, the supply of houses in Houston will catch up with demand at least somewhat, but right now builders are still struggling with high costs for labor and materials. They aren’t building houses fast enough to bring down prices in 2022. Housing prices will very likely remain stable for the foreseeable future, so if you can’t afford a house right now, you’re better off planning and saving and scrounging as much money and credit as you can rather than just waiting until later, because prices probably won’t be coming down any time soon. 

Related: Are More Houses Coming to the Houston Real Estate Market?

Fortunately, there is some good news, too! While home builders in Houston are not yet close to meeting the demand for houses here in the city, they are making progress, at least. The housing supply in Houston is increasing. So while prices won’t be coming down this year, buyers likely will not be subjected to the crazy bidding wars we’ve seen so far this year for much longer. 

For the first half of 2022, anyone trying to buy a house in Houston has had to offer well over list price for a home just to be competitive! It’s something a lot of experienced Realtors® haven’t seen before. Fortunately, we aren’t likely to see it much longer. The bidding wars will calm down and competition for each house will decrease as the supply of houses increases. 

That means, FINALLY, home buyers in Houston can once again expect to pay list price for houses in the city. In the back half of 2022, most Realtors® believe that buyers won’t have to worry about waiving contingencies or making offers way over list price in order to place a winning bid. With less competition, there will be less guesswork about what it will take to make the best offer on a home. That will be a huge relief for home buyers in Houston—and their Realtors®!

Related: 4 Unexpected Things That Can Prevent You From Buying a Home in Houston

That doesn’t mean home buyers won’t benefit from smart, professional advice, however. Contracting an experienced Houston Reator® is always the smart decision when it comes to buying Houston real estate. We can help guide you through all of the normal questions and pitfalls you’re sure to encounter buying a new home in the city. If you’re ready to get started, contact us at Angel Fultz Realty today! We’ll put together a list of homes that meet your needs and find your Houston dream home together.