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Will Housing Inventory Increase In Texas In 2022?

April 11, 2022 | By David Webber

Table Of Contents

The housing market in Texas has been scorching hot the past couple of years. But is that going to continue in 2022?

We spoke with experts and studied the stats and trends to help you better understand the current market and where things may be headed. 

Read on to learn all about the housing inventory in Texas, whether we can expect it to increase, and what else you need to know about buying and selling in this market. We'll explore what all of this really means for home sellers and buyers in the Lone Star State.

US Housing Market Forecast: The Hottest Markets in 2022

It's no secret that the housing market is changing. What does this mean for Texas in 2022? After an initial slow down in mid-2020 due to pandemic uncertainty, the market has come roaring back with a vengeance.

According to, of their list of cities that are expected to see the biggest housing booms in the coming year, Austin TX tops the list!

Austin and other metro areas in Texas are predicted to have a housing inventory increase of at least 15%. So if you're thinking of buying a home in one of these markets, now is the time!

Will The Housing Market Crash In 2022?

The housing market crashed once before in 2008, with devastating impacts. Will it happen again in 2022?

According to most experts, the answer is no. While there could be a slight decrease in home prices and sales volume, there is not expected to be a full-blown housing market crash like we saw in 2008.

So while it's impossible to say for sure what will happen, most experts believe that the housing market will continue to grow in 2022.

Will Housing Inventory Remain Low?

One of the biggest concerns in the housing market right now is the low housing inventory. In many parts of the country, there are simply not enough homes for sale to meet buyer demand.

This has caused home prices to rise and made it difficult for buyers to find a home they can afford. However, relief is in the future.

During the pandemic, new home building came to a standstill. Between worker shortages and increased lumber costs, the market stalled.

However, new construction has resumed in a hurry to address the housing shortage. Unfortunately, as material costs remain high, the cost to buy a new home will be higher than previous averages.

Currently, Texas ranks #6 in the country for states building new homes. And that's a good sign! In fact, Texas has seen a 545% increase in permits issued for new construction. That means that if you're hoping to purchase a home in Texas, your options may be expanding.

Will The Housing Market Decline In 2022?

The U.S. housing market is predicted to slow down in 2022, but it is not expected to decline outright. This means that home prices may level off or even decrease slightly, but they are not expected to crash as they did in 2008.

In Texas, though home sales have slowed, it's not necessarily a sign of demand but of supply. Many experts feel that the number of homes sold in Texas in 2021 could have been better if the state had more homes available for sale.

As newly built homes hit the market, this could increase overall sales again.

Is 2022 A Good Year To Buy A House?

If you're thinking about buying a home, 2022 may be a good year to do it. While prices are predicted to level off or decrease slightly, they are still expected to be higher than they were in 2020.

In addition, mortgage interest rates are expected to remain low. Thus, this lull could be the perfect time to buy before mortgage rates rise, as home prices are likely to drop more drastically anytime soon. Although rates are higher than 2021, we are seeing an increase in the amount of buyers requesting mortgages on new home purchases in Texas.

Will Housing Prices Fall In 2022?

As we mentioned above, housing prices are predicted to level off or decrease slightly in 2022. This is good news for buyers who have been priced out of the market in recent years.

However, it's important to remember that prices could start increasing again after 2022. Newly constructed homes are going to cost more than in previous years, and generally low inventory makes it more of a "seller's market" than a "buyer's" one.

How Fast Will Homes Disappear From The Market In 2022?

Inventory levels are actually expected to increase in most markets in 2022. This means that homes may take longer to sell than they have in the past few years.

But this is good news for those who've found the ultra-competitive market too hot to handle. Statistics from the National Association of Realtors (NAR) showed that homes spent an average of just 18 days on the market in February of this year, down from 20 days last year.

However, this trend is expected to slow down later this year, after peaking in April. With home prices expected to rise by as much as 6% this year, we may see homes listings linger a few days longer than before.

Will Housing Inventory Increase In 2022?

Yes! Inventory levels are expected to increase in most markets in 2022. This is good news for buyers who have been struggling to find a home to buy.

However, it's important to remember that as new inventory hits, prices could start increasing again, as well. So far, all signs indicate that more inventory will become available in the coming months. 

What Does This Mean For Home Sellers In 2022?

If you're thinking of selling your home in 2022, you are in a great position. While prices aren't expected to climb as high or as fast as they did in 2021, buyer demand remains strong and isn't likely to disappear. 

Especially if you live in a place like Texas, where home prices are climbing fast and bidding wars are common, homes are likely to see plenty of buyer activity. If you aren't worried about purchasing a new home with potentially higher rates, this is a great time to sell.

What Does This Mean For Home Buyers In 2022?

Alternatively, if you're thinking of buying a home in 2022, you may want to wait until after the housing market slows down. While prices are still expected to be higher next year than they were in 2020, they may not be as high as they were in 2021 or 2022. This will give you a better chance of finding a home that you can afford.

We do expect to see mortgage rates continue to increase. If that's a factor, you may want to purchase a home sooner. However, even with rising rates, overall mortgage rates remain historically low.

Will There Be Lots Of Foreclosures In 2022?

Unfortunately, January 2022 saw a massive jump in the number of foreclosure starts, with ATTOM Data solutions reporting 23,204 foreclosure filings, a 700% year-over-year increase.

However, these stats, while much higher than in the recent past, are still significantly below pre-pandemic levels. So although this trend has continued into February, it isn't necessarily a red flag for the housing market.

Overall, lending regulators on both federal and state levels have done a lot to safeguard against another housing crash like in 2008. So while we may see more foreclosures in 2022 than we did last year, it's not a huge cause for concern.

Texas Housing Market Predictions in 2022

Two years into the pandemic and experts are still predicting an increase in housing sales. Unfortunately, that means that a lot of people are going to find themselves priced out.

Affordability is going to be an issue and that could eventually weaken demand to more sustainable levels. Overall, the housing market will probably remain strong, but not at 2021 levels.

In Texas, the greatest year-over-year hike in median price was seen in the Austin-Round Rock area, where the amount jumped 30.8% to $450,000. Austin remains a hot market, and buyers may begin looking to less expensive areas in this large state to afford homes.

What Will Be Interest Rates In 2022?

Interest rates are expected to remain low in 2022. This is good news for buyers who will be able to get a low-interest mortgage.

If you're thinking about buying or selling a home in 2022, it's important to stay up-to-date on the latest housing market predictions. This will help you make the best decision for your situation. Are you planning on buying or selling a home in 2022? Let us know in the comments!

How Much Will Housing Inventory Increase In Texas In 2022?

Not significantly. The number of homes actively listed for sale dropped by nearly 180,000 homes at the end of last year, and inventory was down almost 27% compared to the same time frame in 2020.

In Texas, the low supply of homes led to 21 of the state’s 25 largest metro areas to report price increases in the double digits. Statewide, the median home price rose by 15.7% from 2020.

So while overall there are positive signs of inventory increases, the growth is slow and prices will remain high.

What Will Be Interest Rates In 2022?

Interest rates are expected to rise while still remaining historically low in 2022. Thus, the days of mortgage interest rates lower than 3% may be behind us.

Many experts think the average rate on a 30-year loan will be around 3.5 to 4% by the end of 2022. Once again, that is still great by historical standards.

Don't Rush Into A Panic Situation

While you may be anxious to get into a new home, experts urge caution. It's still early in the housing market rebound, and predictions could change. It's a good idea to stay up-to-date on the latest housing market news so that you can make the best decision for your situation.

If you're trying to buy a home, make sure you build a solid team. You'll need a reliable lender and an experienced realtor to help you make the most of the current market trends.

Housing Market Forecasts For 2023

Although it's still early in 2022, potential buyers are looking ahead to next year. What can they expect?

The housing market is predicted to grow in Texas in 2023. So if you are on the fence about buying a home this year, you can't start taking steps now to make yourself a stronger buyer in 2023. 

To get started on buying a home now or preparing for 2023, reach out to our experienced team at Texas United Mortgage. We look forward to helping you navigate this crazy Texas housing market to get into your new home!


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