Low interest rates and an influx of people moving to the region has created a tough market for El Paso buyers. The median home price and the number of homes sold are both up this year over last year, while the number of days that a home stays up for sale has dropped dramatically.
What does all that mean? That you have a lot of competition when buying a home. There’s a lot more people making offers and they’re able to make higher ones. To stick out, make sure you follow these 3 tips:
- Be decisive and quick so that no one else buys it out from under you.
- Don’t ask for contingencies.
- Try to get prequalified or preapproved before making an offer.
In a competitive market like the one in El Paso, you have to make the right moves. With these tips you can set yourself up for success.
Real estate markets in cities across the United States are all constantly changing. El Paso is no different. The changes that this city has been going through has had a tremendous effect on the housing market. Take a look at exactly what is happening within the El Paso real estate market and learn how you can make it through.
What is Happening in the El Paso Real Estate Market
So, just how competitive is the El Paso housing market? According to research from Redfin, this market is just getting more and more tough for buyers. This makes sense considering Texas is the 8th fastest-growing state, according to Zippia.
The research from Redfin looks at the housing market statistics from March of 2021 and compares them to the same statistics from March of the previous year, 2020. They have found three key statistics:
- Median sale price is now at $189,950 which is up 11.4% over last year.
- The number of homes sold during the month of March in 2021 was 767, compared to 608 in March 2020.
- The median days-on-market for homes is down 51% from 49 to 24 days.
According to local news station KTSM, the reason for these trends has to do with a rise in the amount of potential homebuyers looking for their new home being met with a stagnant amount of home listings.
Some possible reasons why so many people are buying homes in El Paso include the flood of people moving to Texas matched with the current low mortgage interest rates. Federal Reserve Chairman Jerome Powell told NPR in an interview that he expects interest rates to stay low for years.
This means that these trends may continue in El Paso, so if you or someone you know is moving now or may be moving in the next couple of years, it is worth researching how to survive in such a competitive seller’s market.
Tips for Buying In a Competitive Housing Market
Most people only go through the homebuying experience a couple of times in their life. The truth is, very few people are experts in this industry. Luckily, as someone who has been in the moving industry for years, I’ve seen a few things. It can be incredibly difficult to buy a home in a seller’s market, so I wanted to share my top 3 tips for navigating through the in-demand El Paso real estate market:
- Be Quick: This isn’t the moment to hesitate, time is a crucial factor in a seller’s market. By pushing off on going to a showing for a potential home you invite the possibility that someone will buy the house right out from under you. If you’re using a real estate agent, make sure you find one that responds quickly so the process goes off without a hitch.
- Avoid Contingencies: It can be tempting to ask for one or two little things when making an offer. I mean, what’s the big deal to ask for a couple hundred dollars worth of repairs when you’re looking at this big of a purchase? The truth is, in a seller’s market, those small changes could be the only difference between your offer and someone else’s offer.
- Get Prequalified: Even if you’re confident that you can get a mortgage based off of your credit score and income, it is much better to have it in writing. Always try to get prequalified or preapproved before making an offer.
When pursuing a house in a seller’s market you will want to do everything you can to stick out. That means providing the best offer possible. Offering a higher price or a cash offer will get more attention, but that isn’t possible for a lot of people. Make sure you utilize these 3 tips and you’ll be in a much better position to get the home of your dreams.
The El Paso real estate market is rising quickly. With research pointing to a continuation of low interest rates and there being no end in sight of people moving to El Paso, it is reasonable to assume that this new competitive market is here to stay.
Be sure to do all of the research you can on how to make it through the homebuying process in a seller’s market and share what you find with your friends and family who may be moving soon. Being familiar with what is happening in the market and understanding the tips in this blog may be the difference between securing your new home and having to start from scratch after someone else swooped in and bought it before you could. Get on top of it and get your dream home.