Is the Corpus Christi Real Estate Market Cooling?
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Are you looking for a house in Corpus Christi? You’re not alone.
Competition to buy a home in the sparkling seaside city remains fierce, although the housing market is showing the first signs of leveling after a series of hot sales during the COVID-19 pandemic.
That’s according to the South Texas Economic Development Center in Corpus Christi, which described the area’s housing market as going “from warm white to red.”
The median home price has hovered above $ 250,000 since March. More than 600 homes were sold each month in 2021, still in the grip of a global pandemic.
Homeowners have apparently reacted to market trends and started listing homes in greater numbers, said Jim Lee, chief economist at Texas A&M University-Corpus Christi. The appreciation of house prices has moderated due to the influx of supply; the amount of inventories fell from an all-time low of 1.7 months to 2.1 months.
“Typically, home sellers are also considering downsizing their homes or moving to another neighborhood with cheaper homes,” Lee said. “Due to the pandemic, the currently burning housing market is the result not only of increased demand, but also of limited supply.
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“So the choices of homes that most residents can afford are very limited, unless the home sellers are considering moving into an apartment.”
“While it takes on average less than 50 days to close a home on the market, it literally doesn’t take long for a listed home to get the first offer today. “
The number of new housing permits is now around 50% higher than in 2019.
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Although the market seems to be cooling, there is still a desire for home ownership among many.
And there is a combination of reasons why.
On the one hand, historically low mortgage rates – now under 3% on most 30-year loans – have encouraged even Millennials and Gen Zs to switch from renting to owning a home, said Lee.
Second, the outbreaks of COVID-19 and its variants have led people to avoid dense neighborhoods, especially near the city center and the centers of major metropolitan areas.
“Thanks to advancements in telecommunication and conferencing technologies… a significant portion of the US workforce has chosen to continue to telecommute or work from home,” Lee said. “This change from the pre-COVID work environment increases the demand for more living space, especially for homes in relatively more affordable areas, like Corpus Christi.”
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it’s happening everywhere
The trend is playing out elsewhere in the country, the National Association of Realtors said in its monthly report on Wednesday.
Sales of existing homes in August fell 2% from July after two consecutive months of increases, the association said. He also reported that total sales were down 1.5% from August 2020, from 5.97 million to 5.88 million.
The association theorized that the drop in sales paralleled the rise in house prices nationwide.
In August, the average cost of a house in Corpus Christi was just over $ 330,000, according to data from the Real Estate Center at Texas A&M University in College Station. The median price of a house in the city was $ 265,000.
Lee said house hunters need to be aware. Officials at the Federal Reserve, the country’s central bank, have hinted at their intention to begin a cycle of interest rate hikes before the end of the year.
This could push mortgage rates up soon, dramatically increasing housing spending.
“Time is running out for potential buyers,” said Lee. : Even if the current evolution of the housing market is mainly based on so-called fundamentals, unlike exuberance as in the real estate bubble of the 2000s, that the buyer beware of financial losses linked to the fall in prices . “
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Other local economic trends:
- The metro area gained 880 jobs between July and August, according to employment data from the Texas Workforce Commission. The job gains were spread across most sectors. The economic development center said the region had restored almost 4% of pre-pandemic employment levels, but slightly less.
- Unemployment in the region fell to 6.8%. Economists believe this is the result of 652 workers leaving the job market in addition to job gains.
- The Corpus Christi hospitality sector was the only area with fewer jobs. Experts believe this is due to a labor shortage, especially in tourism, which followed a rapid outbreak of Delta cases when schools reopened.
Terms and conditions
- The economic recovery in Corpus Christi continued at a steady but modest pace in August. The resurgence of COVID cases locally and statewide, primarily among the unvaccinated, has again dampened out-of-city travel as well as local foot traffic. The local labor market improved further despite being hampered by difficulties in filling vacancies, especially in the hospitality sector.
How much does a house cost in Corpus Christi?
Year Number of sales Average price Median price Months in stock
- 2020 $ 6,964,269,285 $ 225,000 2.3
- 2019 $ 5,797,233,294 $ 200,000 4.5
- 2018 5,610,221,449 $ 195,000 4.7
- 2017 5,195,219,659 $ 186,400 5
- 2016 $ 5,397,217,590 $ 185,000 5.6
- 2015 5,339,207,819 $ 180,000 4.9
Source: Real Estate Center, Texas A&M University
Chris Ramirez writes about energy, commerce and all things business. Support local coverage like this by checking out our subscription options and specials at Caller.com/subscribe