Many foreclosures recently listed in the Houston area and multiple buyers bid on the properties. They were in high demand.
People are concerned about the ramifications of the lock down and the potential foreclosures. In Texas, we don’t have a lot of concern. Our economy is strong. While many small businesses closed over the last year, many new businesses are opening now. Small business is going strong and one of the most challenging issues for business owners is hiring and keeping employees.
Due to the strong economy, more and more buyers are getting pre-qualified for loans and looking for a house to buy. Construction materials from copper wire to wooden studs are higher priced than ever. This was caused by the high demand to remodel and build over the last year and the shut down of production in many places.
People are asking if we’re in a real estate bubble, similar to 2008. This is not the case. We are in a different real estate economy because we have more qualified buyers and a higher demand for homes from people moving to Texas from other states. The bubble in 2008 was caused by too many unqualified buyers being approved for loans. Since then, many more regulations have been placed on the mortgage industry and loan companies are not willing to approve buyers unless they meet strict criteria. The real estate economy is in a much better position today than it was a few years ago.
As a buyer or a seller you should feel secure knowing that home values will continue to increase consistently over the next few years as we experience massive population growth in Texas. Any concerns about foreclosures will be addressed by the continued high demand for homes in Texas.
Daiquiri Beebe is a Huntsville resident and local realtor.