Are Home Prices Falling in El Paso? | Winter 2022

Are Home Prices Falling in El Paso? | Winter 2022

Hi, welcome to living in El Paso, Texas. My name is John Peña and in this episode We're going to answer the question our home prices falling in El Paso Hi, thank you so much for checking out the channel My name is John Peña if you are looking to buy or sell a home

Please consider subscribing to this channel because we have tons of information About El Paso real estate or reach out to us on the information on your screen Basically, it's a crazy time right the feds just raised interest rates another three-quarter points Lots of stuff going on recession inflation all of this, right?

So a lot of people are fearful or concerned that home prices are going to drop, right? So we're going to answer that question right now. Okay, so basically this is November of 2022 our home prices dropping in El Paso the answer is yes, and no and

The no is the overwhelming majority of homes in El Paso are not dropping their prices Okay. Now are they staying on the market longer and taking longer to sell? Yes, they absolutely are because there's less buyers to buy those homes, but prices are not coming down yet Okay now

For a little bit of context right now the average home price in El Paso is about $250,000 last year. It was about $227,000 2020 it was

$200,000 now the reason I bring this up is because I recently heard a theory saying Suggesting that home prices around our country are going to see a return to the levels that we saw it in about 2020 now if this is true, that means that a $250,000 home right now in the future might be worth

$200,000 that's a 20% decrease in home value now Of course, that would be terrible unless you're a buyer or an investor But if you're a homeowner that is not what you want to hear because chances are if you purchased your home in the last two Years now you find yourself owning an asset that is worth less than what you paid for it

And that isn't what you know, nobody wants that now Do do I think this is going to happen? I mean, of course, I hope not and I tend to think not but at the same time nobody can predict the future I certainly can't

But like I said, I just wanted to put that information out there to kind of keep you informed About the moment that we find ourselves in so now I said the answer was yes and no so now Alex is going to tell You the yes part of this answer that yes, some home prices are falling

Okay, so there are mainly three different instances where you're gonna see price draws right now in El Paso The first one is going to be new construction during the pandemic new construction was extremely popular Now that the man has lowered a lot and you're gonna see a lot of new constructions Lower their prices from five to twenty thousand dollars

Even some new constructions are offering different incentives like closing costs or money for a landscape. So there's definitely number one It's going to be new construction new builds between five to twenty thousand dollars is what we're usually seeing prices drop The other is going to be high price homes like John Mencher. Our average is two hundred and fifty thousand dollars right here in El Paso When we talk about high price homes usually four hundred five six hundred thousand dollars

There's just not that much demand for those homes, especially now with interest rates going up Maybe somebody could afford a seven eight hundred thousand dollar home and now with interest rates keep going up Maybe now they can only afford a five hundred thousand dollar home So that is another option another reason why we're seeing a lot of these prices drop

Especially a big amount of price drop is going to be on the higher price points We've seen homes thirty forty even fifty thousand dollar price drop and they usually stay on the market a lot longer than Than our average price homes about two hundred and fifty thousand now another Instance that we see price drop are usually going to be homes that are overpriced

I do think now that the market has shifted a lot of these agents probably still think or thought that they could get Pretty pretty big penny for these houses because that's what most houses were selling for twenty thirty thousand over asking price That's not the case anymore. So when you see homes that are overpriced They're usually gonna stay on the market more than a month two months and that's when you're gonna start seeing prices drop

Usually five ten fifteen thousand dollars. It depends on the price of the home now I do have three different examples of different price points to show you so it can give you a little bit of context on different Like it's a different price before these homes are dropping in price the first one We're gonna start with a high price home beautiful neighborhood very desired area on the west side by the Franklin Mountains

This home they started asking at six hundred and ten thousand dollars It's been on the market for only thirty days and they already dropped the price to five hundred and eighty nine thousand dollars Again, these high price homes are usually gonna drop in price More than the than the than the average price homes, right because they're bigger price

So that's gonna be number one number two is gonna be more closer to our average Now this home is going to be located where we consider the lower valley south of I-10 It is a nice neighborhood, but not as desire Let's say the west side Far East or Horizon City. The homes are gonna be usually a little bit older. This home is gonna be

three bedroom one bath 1,696 square feet it was built in 1955. So it's gonna be an older home. They started asking two hundred and nineteen thousand dollars This home has been on the market for three hundred and fifteen days, which is almost a year now They're asking a hundred and ninety nine thousand nine hundred and ninety nine

Now again, I do think this home was overpriced especially because of the location for that amount of price For that price when you can get in my opinion a newer house and a more desired neighborhood with newer amenities like the Far East So I do think that that's the reason why this house is staying on the market for so long and it's dropping in price Now the other home that I want to talk to it's a home that it's less than a hundred thousand dollars

Now this home is a two bedroom one bath 711 square feet so pretty small home. Now this home was supposedly built in the 1900 This home they started asking price at eighty five thousand dollars. It's been on the market for a hundred and twenty two days And now they're asking sixty two thousand five hundred dollars again

As you can see in the pictures is an older home probably needs to be demolished or spend a lot of money To better to get it back to where it needs to be So in my opinion those are the three different instances that you're going to see price drops new construction high price high price homes like more than

$400,000 and homes that are usually started to be overpriced when they're when they're listed So those are the three entry instances that home prices are going to be dropping Thank you very much for checking out the episode Please leave us a comment down below letting us know your opinion

Do you think these houses are going to keep coming down in price? Do you think the market is going to stay or do you think we're actually going to see an increase in prices? We'll see you in the next one. Bye