Texas Real Estate in Transition: How Buyers and Sellers Can Thrive in a Correction Season

The Texas housing market is currently experiencing a correction, a phase where the rapid price increases of the past few years are being tempered. Unlike a buyer’s market, which occurs when there are more homes than buyers, a correction market is defined by a natural adjustment in pricing, often in response to previously inflated values. This correction brings more inventory, but at more sustainable prices. While buyers gain some leverage, they are not in the same advantageous position as in a typical buyer’s market.

In this correction, buyers benefit from more negotiating power, longer decision-making periods, and potentially better financing options. However, they still face challenges with rising mortgage rates and some level of competition, as many sellers remain firm on their asking prices. Pre-approval remains essential for standing out, and buyers should avoid contingencies when possible, though sellers may now be more willing to entertain them due to the market's evolving dynamics.

For sellers, the shift towards a correction market introduces significant challenges. Homes are staying on the market longer, leading some to reduce prices to maintain interest and close sales. For those unwilling to adjust, some are opting to remove their listings, hoping for a better time to re-enter the market. In certain areas, though, the market remains relatively active, with some buyers opting for homes further outside major cities to avoid heavy traffic. While homes will eventually sell, prolonged listing periods create a stigma, causing potential buyers to question whether something is wrong with the property.

Key Takeaways for Sellers:

• Be prepared for longer listing times.

• Consider adjusting your price to attract buyers.

• Strong marketing strategies are critical to stand out.

• Expect contingencies to become more common and possibly more negotiable.

• Short sales are increasingly prevalent as homeowners face "underwater" situations, where they owe more than the home is worth due to previous overvaluations.

As Thanksgiving is just around the corner, I hope you enjoy a wonderful time with family and friends! With the holiday traffic picking up, stay safe and make the most of this special season. If you have any questions or need help with real estate, feel free to reach out. My website offers valuable resources like property listings, market insights and news, personalized home evaluation options, and leasing calculators.

Wishing you all a joyful Thanksgiving, and I’m here to assist whenever needed!

Amanda Allen, Realtor- (903) 603-0648 - Amanda.Allen@cbrealty.com