Low supply and high demand boost housing market | Business

One day, that was all it took for the “for sale” sign that John Alegria placed in the front yard of a Victoria house to turn into a “sold” sign.

The home, nestled in the heart of a quiet Victoria neighborhood on Taos Drive, did not last 24 hours on the market, said Alegria, a realtor at Greg Spears Realty. Seeing Alegria put up the “sold” sign, a neighbor walked up and asked if Alegria thought her house could sell as well. Alegria’s response was a warning: Yes, the house could sell – for a good price – but make sure you have somewhere to move to after it’s sold, as homes are scarce.

The housing market is in the midst of a period of healthy demand and depleted statewide supply, and it only takes a glance to see that Carrefour is not reversing this trend.

Demand for housing increased during the pandemic as people sought more suitable spaces to work from home, city dwellers sold their stores to move to more rural communities and mortgage rates fell, Al Kopecky said, team leader at RE / MAX Terrains et Maisons.

A housing shortage is why Alegria warned the neighbor on Taos Drive against the sale, he said.

“The housing market here is slim right now,” Alegria said. “Two or three years ago you had 300, 400, 500 houses available in Victoria. Now you have maybe 110 or 120 houses available all over town.

Homeowners in cities in Texas like Austin and in remote places like Las Vegas and California are selling their homes and buying properties comparable to Victoria at a much lower price, which has reduced the supply of homes in Crossroads, said. Alegria.

“They come in and they buy stuff with cash,” he said. “They don’t even negotiate the prices.

Kopecky echoed Alegria’s take on newcomers.

“I have a lot of people who come from other states,” Kopecky said. “A lot of people on the west coast are going in this direction. I think Texas is just a very popular place right now.

One possible reason there are fewer homes on the market could be that homebuyers who sell homes in more expensive markets are not only buying homes for themselves, but also using their money. sales to invest in real estate, Alegria said.

“A lot of people buy and invest by turning houses into rentals,” he said. “Rentals don’t even last in the market. You put a house on the market for rent and in a day or two it’s gone.

The work-from-home model that spread during the pandemic has influenced homebuyers, Kopecky said.

“We see a lot of people moving into the house because during quarantines and the COVID pandemic they decided they needed more space, needed space configured differently, home offices, more space for children, ”he said. “We see a lot of things to make room or better use the space.”

Another possible reason the demand for housing has increased is interest rates on mortgages, Kopecky said.

“We have very low interest rates, which is causing more and more people to want to buy right now,” he said.

Alegria bought a house in 2005 and said people were getting interest rates that were only a fraction of what he was getting then.

“If somebody got the same interest rate as me, it would be like ‘No you don’t get a good deal’,” he said. “There are people I hear getting an interest rate of 1.5%, 1.8%, 1.9%, and that’s just ridiculous.”

The scarcity of housing has pushed up the price of housing. Prices stabilized at the end of the summer, but it’s a normal cycle and the market is expected to warm further, Kopecky said.

“The last minute vacations, the late summer stuff, once it’s over it tends to pick up,” he said.

The state of the housing market cannot be blamed solely on an increase in demand for new housing or a shortage of available housing, Kopecky said.

“It’s both,” he said. “I mean, there’s just a huge difference between inventory and the number of buyers. “

Cody covers the pace of business for the lawyer. He can be reached at (361) 580-6504 or cbaird@vicad.com

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