The Wild Real Estate Market In Texas by Greg McKinney Mineola TX
Low interest rates and the ever increasing demand for homes is causing something we have never seen in the Dallas Fort Worth area of Texas. Dozens of people lining up to hopefully be chosen buy a developer to make offers to purchase one of their homes.
It’s a very strange time we are living in and a strange site to see people lined up hoping the developer will pull their name in the home lottery. The potential homeowners are all preapproved and if their names are chosen, they are then allowed to make an offer on the homes. They are not even guaranteed a home if their name is chosen. The is a crazy time we are living in.
Real estate agents were also there with some of these desperate buyers trying to help them navigate this unheard-of process to buy a home. There is a lot of tension at these “home lottery” sales.
The competition for homes has steadily increased over the past 2 months all across Texas and especially in North Texas. Many buyers waited to buy a home last year because of the pandemic and now they are all hitting the market all at once trying to find a home. Couple that with low interest rates and we are seeing things we have never seen before in the real estate market. I’m Greg McKinney from Mineola Texas and I have been in the real estate business for almost 30 years. This is something I have never seen before.
Many of these home buyers say they had a specific home in mind 6 months ago but now that has all changed. Instead of looking for specific styles and finishes in a home many buyers are happy to take anything they can find.
Developers are pushing their crews to the limit to build homes as fast as they can. Hopefully the quality of these homes being rushed to be built is still up to code but with the speed they are being built right now we are destined to see problems down the road with many of these homes.
Large investors are also getting involved in making it difficult on homeowners to purchasing existing homes. Some out of state investors a purchasing homes site unseen. They are buying homes quickly with no appraisals or home inspections being completed. Many of these large scale investors are paying cash for homes and paying above the listing price which is also driving up home prices in the area. Some large scale investors are taking advantage of these historically low interest rates to snatch up homes without spending very little of their own money with the hope these homes will appreciate over the next several years. Many investors fear the new proposed increases in taxes could hurt them over the next few years to they are looking for an investment to park cash. A rental property has always been a great place for investors to put their cash because homes can be depreciated which saves the investor money on the income taxes and at the same time the home is going up in value each year. A win win for the investor.
Greg McKinney Mineola TX
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