BELL COUNTY, Texas — Sellers have had to cut home prices to entice more buyers thanks to home sales declining in large parts of Texas.
The Federal Reserve is expected to increase interest rates to continue efforts to help with inflation. The housing market has taken quite a hit during those efforts, deterring potential buyers from taking the steps to buy a home.
Texas A&M Real Estate Research Center reported over 80,000 homes were listed for sale so far this year in Texas compared to just 55,000 this time last year.
Central Texas realtor Blake Lufburrown says now buying a home has become much easier because the market is wide open.
“What's most important is that you just got a plan in place and that your expectations are in line with what you can afford. And so you may have been looking at a certain price point for quite some time, you might need to look down a little lower than you were and just identify a payment that you're comfortable with and not pay attention to that interest rate," Lufburrown explained.
He went on to say as long as you know what price range works best for your income and you speak to a realtor you trust, buying a home shouldn't be a problem.
According to the mortgage reports, softened demand has slowed the rate of home price growth, boosted inventory gains, and given buyers some bargaining power.
For example, homes are usually taken off the market and sold in less than 30 days, but since the interest rate hike it's taking realtors longer to sell homes and they're even having to lower home prices to get them off the market.
This gives people who may have never thought they could find a home an opportunity to weigh their options even more.
Texas A&M Research Economist Clara Losey expects interest rates to continue to rise throughout this year, but there is a bright side to what’s happening.
"We've reached a point in which home prices are probably going to have to come down a little bit to be more in line with reasonable expectations for household income and what not. but in the long run, that should play out in a healthy beneficial way for the housing market," Losey shared.
Part of the American Dream has always been to be a homeowner. While interest rates have been higher than normal, Losey said these numbers have been like this before and there is still a chance for first time homebuyers to fulfill their dreams.