The latest data shows home prices are continuing to appreciate, just at a slower, decelerated pace. But that doesn’t mean they’re depreciating. If you want to know more about what’s happening with home prices in our local area, DM us, and let’s connect.
This is an inflection point for the housing market. Over the past two years, we’ve seen a massive amount of buyer demand (showings) and not enough homes available for sale (listings). Today, supply and demand look very different. Supply is up and demand is down. If you have questions about what that shift means for you, DM us.
Earlier this year, mortgage rates rose dramatically. If that delayed your plans to buy a home, look at where experts project rates will go from here. While no one knows exactly what will happen, on average, experts forecast mortgage rates should stabilize over the next year. DM us to discuss how this could bring clarity to your homebuying plans.
August 2022 Lubbock Market Update
Buyers Are Regaining Some of Their Negotiation Power in Today’s Housing Market
If you’re thinking about buying a home today, there’s welcome news. Even though it’s still a sellers’ market, it’s a more moderate sellers’ market than last year. And the days of feeling like you may need to waive contingencies or pay drastically over asking price to get your offer considered may be coming to a close.
Today, you should have less competition and more negotiating power as a buyer. That’s because the intensity of buyer demand and bidding wars is easing this year. So, if bidding wars were the biggest factor that had you sitting on the sidelines, here are two trends that may be just what you need to re-enter the market.
1. The Return of Contingencies
Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or inspection, to try to win a bidding war. But now, fewer people are waiving the inspection and appraisal.
The latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection and appraisal is declining. And a recent survey from realtor.com confirms more sellers are accepting offers that include these conditions today. According to their August study:
- 95% of sellers reported buyers requested a home inspection
- 67% of sellers negotiated with buyers on repairs as a result of the inspection findings
This goes to show buyers are more able to include these conditions in their offers today and negotiate as needed based on the outcome of the inspection.
2. Sellers Are More Willing To Help with Closing Costs
Generally, closing costs range between 2% and 5% of the purchase price for the home. Before the pandemic, it was a common negotiation tactic for sellers to cover some of the buyer’s closing costs to sweeten the deal. This didn’t happen as much during the peak buyer frenzy over the past two years.
Today, as the market shifts and demand slows, data from realtor.com suggests this is making a comeback. A recent article shows 32% of sellers paid some or all of their buyer’s closing costs. This may be a negotiation tool you’ll see as you go to purchase a home. Just keep in mind, limits on closing cost credits are set by your lender and can vary by state and loan type. Work closely with your loan advisor to understand how much a seller can contribute to closing costs in your area.
Regardless of the extremely competitive housing market of the past several years, today’s data suggests negotiations are starting to come back on the table. This is good news if you’re planning to enter the housing market. To find out how the market is shifting in our area, let’s connect.
July 2022 Lubbock Market Update
Lubbock, TX Market Trends & Statistics last updated on July 31, 2022
In July 2022, Lubbock homes were selling for a median price of $268,950, Lubbock homes on average sell after 38 days on the market compared to 108 days last year. There were 1246 homes sold in Lubbock for July this year, up from 125 last year.
Lubbock Market Trends
The median list price of homes in Lubbock, TX was $268,950 in July 2022 , compared to $235,950 in 2021. Lubbock, TX was a seller’s market July 2022, which means that there are more people looking to buy than there are homes available. The original list price ratio in Lubbock is 100.8%, which means that homes in Lubbock are selling for close to the original asking price.
Lubbock, TX Housing Market Summary
The median list price in Lubbock is $268,950. The median list price in Lubbock was less than 1% change from July to August. Lubbock’s home resale inventories is 1,242, which increased 0 percent since July 2022. The median list price per square foot in Lubbock is $142. July 2022 was $142.
|Today||1 Month Ago||1 Year Ago|
|Median List Price||$268,950||$268,950||$235,950|
|Median Home Size||1,950 Sqft||1,949 Sqft||1,760 Sq ft|