Lubbock housing market shows signs of cooling, experts say

Published: Sep. 26, 2022 at 4:32 PM CDT|Updated: Sep. 26, 2022 at 6:44 PM CDT
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LUBBOCK, Texas (KCBD) - A few years of a very tight housing market may be coming to an end soon.

But still, one way realtors describe Lubbock’s housing situation: complicated. However, compared to how tight the past spring and summer have been, buying a house, in some respects, is getting a little easier.

Now could be the start of the housing market getting back to normal.

“We still are just on the side of a seller’s market but heading more into a balanced market,” Donna Sue Clements, president-elect of the Lubbock Association of Realtors, said.

Part of the reason the balancing act has started could be interest rate hikes.

Buyers may not afford as much of a house. Or, those looking to sell may not be getting as much in return.

In the Lubbock area, the housing inventory is up to 1.9 months.

“(That means) if we don’t allow any other houses to be listed and we go through -- we’ve got 1.9 months to sell the inventory that we have,” Clements said. “And then we would run out of houses to sell.”

But that number is still tight.

However, something adding to that increase in inventory is more building around the city.

“I always tell people, today is the cheapest time to build or buy,” Keith Toogood, president of the West Texas Home Builders Association and area builder, said.

In the last month or so, two major businesses have also announced they are coming to Lubbock.

So more building and increased housing inventory could help to alleviate the current housing issues. Though, people pay more to have houses built.

“If you look up at five years from now or two years from now, prices are going to be higher than they are today,” Toogood said. “Prices will historically increase, but so will value.”

So, for now, home builders and realtors have an optimistic outlook and hope the trajectory to normal stays the same.

“We are prepared for that,” said Clements, “we’ve got the availability.”