May numbers are in and the Texas median home price is the highest ever at $162,400. Couple that with quickly rising rental rates and you have a market that is short on affordable inventory. For the first time in many years it is truly less expensive to own than lease in many market segments. Couple that with historically low interest rates and affordability is also at a high point.
The lending industry as a whole is putting the brakes on any big gains in the market. Qualification regulations are tight for borrowers and appraisers are not willing to give appreciation factors on some properties. That makes it difficult to conduct business. You know how it is when you give one party to much power? Well some appraisers seem to have let their power to disrupt dreams overwhelm them. Oh well things can’t always go smoothly…and rarely do. So it’s a battle field out there for some.
According to the MLS data, existing home sales are up 20% over May 2011, and prices are up 8%. Sales year to date are up 13%.
Here are some links brought to you by RECON: You can hear Gaines’ complete interview on this week’s Red Zone podcast, available on the Center’s website. The latest building permit and MLS home sales data are also online.