Current Housing Market in El Paso
In 2020, many cities have seen housing markets change. But, in El Paso, the market is continuing to flourish, despite issues with the COVID-19 pandemic. This experience differs from other towns around the country, where home sales have become stagnant. In El Paso, some homeowners are finding themselves feeling uncertain about offering their homes for sale. This is because of uncertainties involving the economy due to the pandemic. With the supply down, the demand has gone up for homebuyers.
According to realtor.com, El Paso homes are averaging $188,000 in May 2020. This is a price increase of 4.8% since the same time last year. As many home buyers are looking for homes under $250,000, this price is keeping the El Paso market hot. Interestingly, the supply and demand of homes in El Paso are about the same in 2020 as it was in 2019, proving the pandemic hasn’t had much of an effect on the current market.
One metric has changed in May 2020. Homes in El Paso, Texas remain on the market for an average of 68 days. Compared to April 2020, the average number of days on the market has increased, but it is lower than the average from 2019.
El Paso Housing Market Trends and Prediction for 2020 – 2021
There are several expectations for the upcoming year in El Paso. The expectation is that the town will continue to be a hot real estate market, much like other cities in Texas. Economists are paying close attention to both the housing market and the economy in the city, especially since both are so closely tied to trade between Mexico and the United States.
The thriving market is due to the affordability of homes. When compared to other economic hotspots in Texas, El Paso has the lowest median prices. The properties are in so much demand that homebuyers get into bidding wars over them. Homeowners then receive top dollar after receiving multiple offers.
Reasons to Invest in El Paso
El Paso may not have the same name recognition as Austin, Houston, or Dallas, but many people are finding it a good investment option. Unlike the other large cities in Texas, El Paso still remains affordable. The housing market is 40% lower than the national average, which makes it attractive to investors who are looking for opportunities. They are hoping that when they buy low, they can eventually sell high.
Along with an affordable housing market, there are several areas that also have affordable rental options. This is also attractive to investors who look to own properties for the long haul in an effort to bring in revenue from renters. The hot areas for rental properties include
- Cielo Vista
- Mesa Hills
Even though El Paso has an affordable housing market, there are expensive options, too. These are in the northwestern and eastern parts of the city and its surrounding suburbs.
Another good reason people are making an investment in El Paso is that it offers a strong job market. The trade crossing the river means there are opportunities in government, hospitality, and logistics. There are also opportunities on the rise in healthcare and finance. The unemployment rate is a low 4%.
How the Overall Economy is Helping El Paso
The economy varies around the country, but there are some trends that are helping move the El Paso housing market.
Reducing Restrictions on Loan Requirements
Financial institutions have relaxed their requirements for conventional loans. The housing problems of 2008 are a distant memory, so lenders are allowing higher debt levels. They are also allowing new homebuyers to put down less money in the past, especially as monthly rental costs eat up a significant part of many down payments.
Low Mortgage Rates
Along with reduced restrictions, mortgage rates have remained low and are expected to stay that way. This gives reluctant homebuyers more reason to get in on the hot market – if they can find a property. Many believe the rates will stay below 4.5% for a while, but no one knows for sure as interest rates are still highly volatile.
Investors Appreciate the Draw of Rental Properties
As some people are reluctant to invest in a home, investors are all too ready to put their money into rental properties. The newer apartment complexes draw renters by offering family-friendly environments within walking distance. The multi-use offerings include movie theaters, public parks, community gardens, dining opportunities, and more all surrounded by modern apartments.
Aggressive Millennial Homebuyers
As the number of homes on the market is low, buyers have to be aggressive. It is common for buyers to make offers above the asking price so they can find a home. These aggressive buyers are making it interesting for sellers to list their homes – even with the possible risk of not being able to find something new. Millennials are earning competitive salaries, and many are ready to start families. So, they want homes, at prices under $250,000.
Stated by credit repair El Paso specialists, El Paso is an affordable housing market with homes in the ideal price range. The thriving economy and welcoming economic trends are making things interesting for buyers and sellers alike in El Paso. With international trade growing between Mexico and the United States, the port in El Paso continues to offer jobs in a variety of industries. Many of the jobs pay well and offer security, like those in the military, government, and logistics industries.