High demand but low inventory.
The demand remains high for home buyers in Hopkins County. But the inventory (homes on the market) continues to be very low. Because of that low inventory, many sellers have decided to stay put from the simple fact that they can’t find a home to live after the sale closes. Fewer still, some sellers have decided the low inventory will give them a better return for their home’s value since the high demand versus low inventory has increased the price of their property. But the good news for buyers is that we have seen prices stabilize and maintain, most recently. According to Next Advisor, “While housing prices aren’t expected to drop this year, the increasing rate of prices should slow down.”
Rising Mortgage Rates.
It is true. Rates have increased with Realtor.com stating, “Mortgage rates averaged 5.1% by the end of April for 30-year fixed-rate loans.” Even though this trend may discourage some buyers, it also frees up the buyer pool as more decide against buying. That means less competition for the ones willing and able to continue their search for a home or property. In Hopkins County, that brings some relieve to those who’ve been frustrated by the lack of available homes on the market.
Cash Buyers.
Good news for sellers, despite the rising rates, we’ve seen more cash buyers over the last several months. Mainly because they sold a piece of land or a home, cashed out, and took their stash of equity toward another property. But this will also compound the obstacles of getting an accepted offer. For instance, we’ve seen similar situations like this one from the east coast mentioned in this USA Today article, families struggle to get a home because the ones they have liked “were quickly snatched up and bought with cash.” However, this benefits the sellers.
Inflation’s Impact.
With inflation negatively impacting the average person, essential items like food, gas, and other items cost considerably more. This depletes your bank account in a tangible way that is seen every time you hand your bank card to the clerk at the local grocery store or put the nozzle back in the gas pump. It is painfully obvious. And for those living in densely populated areas, other factors compound the stress, worry, and anxiety which decreases their quality of life. This causes people to search for change or a different way of living. A place where they can escape or slow down. Enter Sulphur Springs. Here, the thriving small-town vibe appeals to newcomers. Many of whom continue to be impressed with our town’s friendliness and active community. And with remote labor, working from home in a smaller community has become easier. “The flexibility from the higher adoption of remote work is fueling greater interest in sunnier climates,” notes Realtor.com. This in turn, allows those looking for a better quality of life to search out areas like Sulphur Springs and Hopkins County.
Growth.
As the possibility of finding relieve from the current economic climate grows, so can the chances for Hopkins County’s industry and population. According the Hopkins County Economic Development,“Sulphur Springs’ growth is evident with the construction of new residential properties and communities, major expansion of existing manufacturing plants and construction of new manufacturing facilities.” This can bring more jobs and hopefully a bigger inventory of homes for buyers.
In the end, if you expect a market crash like we saw in 2007, do not hold your breath. According to the Dallas Fed report, “there is no expectation that fallout from a housing correction would be comparable to the 2007–09 Global Financial Crisis in terms of magnitude or macroeconomic gravity.” And despite the rising mortgage rates, some analysists think the higher rates are a good thing. In Fortune Magazine, “The spike in mortgage rates, he says, could result in home shoppers backing off a bit,” says Logan Mohtashami, lead analyst at HousingWire. Essentially for buyers in the area, that means adjusting to the current climate for an extended period of time, possibly years to come. And for sellers in Hopkins County, it could mean taking advantage of the market knowing that you’ll also need to carefully plan where to live after you sell your home.
About the Contributor: Janet Martin Realty is a multi-million-dollar real estate company in Sulphur Springs that works with clients nationwide. In 2021, because of their clients’ trust and repeat business, they sold over $62 million in property throughout North East Texas. However, their greatest success continues to be the strong bonds and relationships they’ve built within the community. It is because of their clients that this team of realtors have ranked as some of the top producers in Hopkins County and are one of the top-tiered independently-owned real estate companies in the local area. The office is located at 1325 South Broadway Street in Sulphur Springs across the street from Starbucks.
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