‘I’ve never seen a market like this,’ says Lubbock real estate agent as house prices soar | KLBK | KAMC

LUBBOCK, Texas – As Lubbock wraps up its peak home buying season, local homes have sold 34% more than in the same period five years ago.

The average selling price of Lubbock homes in September 2021 was $ 247,000, more than $ 70,000 more than the average home price. In September 2016, the average home was selling for $ 184,000.

“I’ve never seen a market like this,” said Teresa Smith, president of the Lubbock Real Estate Association. “It has moved to a seller’s market, which means we have low inventory and have more buyers than homes to accommodate them. “

Analysts attribute the nationwide housing shortage to supply chain issues from the pandemic and rising timber prices as high construction costs prevent a significant increase in housing supply while demand remains high. As of September, there were 712 homes for sale in the Lubbock area, up from 1,215 five years ago. As a result, these homes on the market sold on average 33 days faster than in 2016.

“This is something I haven’t seen since I’ve been doing this for 25 or 26 years,” said Lubbock Association of Realtors President-elect Rich Eberhardt. “A house is put on the market and you get 10, 15 offers in 24 or 48 hours. It drives up the price of the house. And the houses were selling for 5, 10, 15,000 above the list price. Which is something we haven’t seen historically.

The booming housing market is not unique to Lubbock. In July, S & P’s national home price index jumped 19.9% ​​from July 2020, a bigger gain than the market has seen in more than 20 years. But local estate agents say it’s the first time they’ve seen the central city follow national trends so closely.

“Texas in general is seeing the same effect,” Ms. Smith said. “We have our fair share of out-of-state buyers and they come from markets where when they sell they have a lot of money in their pockets. They are therefore able to offer a little more.

Eberhardt observed that house prices have stabilized from the peak season from March to August, which may create a slightly better environment for potential buyers. LAR says patience is the key.

“Patience is your best friend,” Ms. Smith said. “Don’t settle for just anything because it seems like the only thing available. Keep saving, keep looking.

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