EAST TEXAS (KETK) – The East Texas real estate market is on an upward trend, meaning it’s a good time for sellers, but buyers need to act fast.
One of the main drivers keeping people in the market is the falling interest rates and pent-up demand. According to John Mckinney, CEO of Mckinney Homes in Tyler, with business closure leading to job loss given the pandemic, people are beginning to migrate to less expensive areas.
“Particularly here in Texas, it’s been a very popular place for people to move, so that’s another driver as well here locally. Texas is a very popular place because of the no state income tax and some of the advantages people have moving here.”John Mckinney, CEO of Mckinney Homes
Since the dawn of COVID-19 to present day, Mckinney said there have been increases across the board. Nationally, new construction sales are on the rise with inventory on lower demand. “There’s actually been a four-month inventory on new construction across the United States,” said Mckinney.
For real estate and construction, business remains steady despite the pandemic. Mckinney said his business hasn’t “missed a beat” given the Governor’s help when deeming construction as essential early on.
Given the high demand in homes, supply is fairly low, meaning prices are on the rise. Due to the rising prices in supply and material because of the pandemic, availability in materials has grown scarce. “There’s not nearly as many construction homes available on the market right now. And the price of those homes is going up, as a result of that demand,” said Mckinney. Despite rising prices, homes are selling fast.
“We already had a booming market before the pandemic hit and I think a lot of that is still carrying over. People still have money. I think the fact that the banks have kept or the fed has let interest rates stay as low as it has. People are still in the market to buy a home even though people have lost jobs or lost income. People are still finding it a good time to buy just simply because those rates are so low.”John Mckinney, CEO of Mckinney Homes