Used home sales slow in East Texas as mortgage rates increase

Published: Dec. 22, 2022 at 7:02 PM CST

TYLER, Texas (KLTV) - According to the National Association of Realtors, interest rates and the price on homes continue to climb, causing home sales to decrease.

Chairman for the Greater Tyler Association of Realtors, John Wampler, said the housing market at this time last year looked completely different.

“Last year we had barely any inventory at all. Interest rates were low. So, tons of buyers in the pool ready to attack any house that hits the market. Right now with interest rates going up and up and up, we basically see that buyer pool has diminished.” said Wampler.

The November 2022 Smith County housing report compares data to November 2021. It shows the average sales price is $48,000 more than last year. That average sales price is at $358,000.

And according to Freddie Mac, the interest rate on a 30-year fixed mortgage is at 6.3 percent. Wampler said higher interest rates allow for more inventory to grow back.

Wampler also said sellers are still able to get the prices they hope for from their properties. But it may take longer for the house to sell with less buyers at this time due to high interest rates.

However, there are buyers willing to close anyway.

“I think what’s happened is, over the last two years, buyers have lost out on so many properties that there are still some buyers willing to take the hit on interest rate just to obtain a property and probably hopes to refinance later when the interest rates die back down.” Wampler said.

In a traditional market, home sales and buying usually slow down during the holidays. Although Wampler said we may be out of that stereotype as more inventory is available.