Hi. I'm Diane McNelis, Award winning Texas Realtor(R) with Coldwell Banker Southern Homes. Selling and Buying homes in Southeast Texas can be complicated. I'm here to help. When we work together I become your advocate. My goal is to get you the best deal possible and to exceed your service expectations. On my blog, I share tips and strategies for selling and buying homes in Southeast Texas.

Low Interest Rates Make Homes in Beaumont or Lumberton More Affordable
Beaumont W4 Homes Sold for 99% of Asking Price in September

Beaumont, Southeast Texas Home Prices Projected to Go Up

0.6 to 6.0% Appreciation Forecast

The economic forecast for the housing market predicts an increase in home prices over the next year.  The predictions range from 0.6%-6.0%.  In Southeast Texas we have seen a 2-4% appreciation in the housing market for the past few years.   

Where Are Home Values Headed Over the Next 12 Months?

Where Are Home Values Headed Over the Next 12 Months? | MyKCM

As shelter-in-place orders were implemented earlier this year, many questioned what the shutdown would mean to the real estate market. Specifically, there was concern about home values. After years of rising home prices, would 2020 be the year this appreciation trend would come to a screeching halt? Even worse, would home values begin to depreciate?

Original forecasts modeled this uncertainty, and they ranged anywhere from home values gaining 3% (Zelman & Associates) to home values depreciating by more than 6% (CoreLogic).

However, as the year unfolded, it became clear that there would be little negative impact on the housing market. As Mark Fleming, Chief Economist at First American, recently revealed:

“The only major industry to display immunity to the economic impacts of the coronavirus is the housing market.”

Have prices continued to appreciate so far this year?

Last week, the Federal Housing Finance Agency (FHFA) released its latest Home Price Index. The report showed home prices actually rose 6.5% from the same time last year. FHFA also noted that price appreciation accelerated to record levels over the summer months:

“Between May & July 2020, national prices increased by over 2%, which represents the largest two-month price increase observed since the start of the index in 1991.”

What are the experts forecasting for home prices going forward?

Below is a graph of home price projections for the next year. Since the market has changed dramatically over the last few months, this graph shows forecasts that have been published since September 1st.Where Are Home Values Headed Over the Next 12 Months? | MyKCM

In Southeast Texas

The numbers show that home values have risen each of the past three years.  In September 2018, the median price of a home was $145,000.  In September 2019, the median price was $164,000 and in August of 2020 the median price was $172,450.  *Data from the Real Estate Center at Texas A&M.

The Take Away

Let’s connect if you want to know what your home is currently worth and how that may enable you to make a move this year.  With interest rates at historic lows you have more home buying power than ever before.  This might be the right time to upsize or downsize your current home.  

Sincerely,

Diane

Diane McNelis, Coldwell Banker Southern Homes

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