El Paso Real Estate Market Update | Summer 2022

El Paso Real Estate Market Update | Summer 2022

Welcome to Living in El Paso, Texas. My name is John Peña and in this video we're talking about a real estate market update for El Paso, Texas summer 2022. Hi thank you so much for checking out the YouTube channel. My name is John Peña with Peña El Paso Realty Group. If you are looking to buy or sell a home in

El Paso, Texas please consider reaching out to us. We are here to guide you on that real estate journey. And speaking of guiding and educating and trying to bring as much value as we can, we're gonna break down the real estate market in El Paso here in the summer of 2022. There's a lot of stuff going on to say

the least so let's just jump right into it. So let's just kind of talk about kind of like maybe a macro level kind of where we're at here with the economy and the housing market. So this comes from a Redfin economist. It says the housing market housing market isn't crashing but it is experiencing a hangover as it

comes down from an unsustainable high. So now I've been doing a lot of short-form content on Instagram, TikTok, all these platforms about no I do not think there's going to be a housing bubble. So by all means check that out. I'm not going to go into that now. But why would the why would the housing market be

experiencing a little bit of a of a hangover as this person says. Number one rising interest rates. If you've been following the news today is Friday June 17th. On Wednesday the Fed announced they were they were raising the interest rates 0.75 percent three-quarters of a point. This is pretty it's pretty

significant because typically the Fed raises interest rates at about a quarter percent you know 0.25 a quarter percent you know every maybe quarter or so but this was this was a big one and so that that really you know that's going to make the mortgage interest rate that you get on your home loan that much higher

you know. Not so long ago we were at three percent interest rates now we're up in the fives and honestly now we're probably closer to six and so there's a good chance that by the end of the year we're looking at mortgage interest rates around seven percent. So that's definitely one thing for this kind of

hangover and then number two the other thing that's not helping is that home builders are having to cut back on significantly because of a decrease in demand. So we still have this situation where there just aren't enough homes for sale for the number of people that want to buy them and now it's harder for

people to buy them because the interest rates are higher and there's not going to be as many homes because home builders are you know cutting back as well. So macro level that's kind of what's happening here. Now with that said the demand to purchase homes remains staggeringly high. Realtor.com predicts

that 2022 this year will see the second highest volume of home sales since 2007 and so there's still a very very significant demand for homes and so that's you know that's just kind of how it is here. So let's talk a little bit about the El Paso market. So I'm just going to put this up here and this is

pretty fascinating. So this is from this is comparing May just last month in May of 2022 to May of 2021. So the median sales price right now in El Paso is just under $240,000 okay. This is up over 21% from last year. So a lot of people have been saying for the last year oh home prices are going to crash home prices

are going to crash. Well you can see here that home prices are up over 20% from last year alone. So that you know that that's that's just the reality of what's been happening in our market. Now let's talk about active inventory because this is the biggest this is the biggest change from a year ago. So the number of

active homes last month was just over 1,000. 1,076. That is down by 40%. So last year at this time there were probably closer to I'm guessing here 1,800 homes okay. Now this year there's only 1,076 homes. Why is this? One of the reasons is because in a real estate market a lot of times the homes that aren't the best

that nobody gets too excited about they sit on the market for a long time and and eventually they'll sell. What happened last year though is that the buyer demand the housing market was so insane that all of those kind of like meh mediocre homes they sold like basically anything sold last year. So a

lot of that kind of what I call it deadweight inventory that that's that's been that's been sold off. And so now we're really just dependent on the people that truly you know are wanting to sell their home. So there's not a lot of that deadweight inventory anymore. So that that's pretty significant. So we're

still seeing about eight days on the market. That means that you know within about a week a home is going to be listed and then it's going to go under contract. And the the nicest homes they're still going under contract in a day or two. The other homes that are still you know decent maybe five six

seven eight days is average. And so a couple other things here the median sold price per square foot a hundred and thirty nine dollars a square foot that's up almost 20% from last year. So again home prices are increasing. Last year alone homes in El Paso according to Redfin appreciated 15%. Now we do not

believe that that's going to be the case this year. I think it's going to be probably closer to the ballpark of I don't know maybe seven to ten percent. Across the country people are predicting that home prices are going to appreciate about six point six percent over 2022. I think it's a little bit higher here

because El Paso is a very desirable market which we'll talk about a little bit later. So that median home price per square foot 100 almost 140. So now a lot of people and real estate agents are crying about there aren't weren't there not as many not as many homes are selling. But that's not actually true.

Last month 814 homes closed. That's up 3% from just a year ago. So there's still plenty of homes that are selling. Now I don't mean to toot my own horn here and this has never happened to us before but we had today is Friday June 17th we had five closings today. All right now again this is not common but you know homes

are selling. So anybody that tells you otherwise you know for those sellers out there if you have a real estate agent and they're not delivering on what they promised you don't let them tell you that homes aren't selling because homes are still selling. There's no doubt about it. And a little bit of good news

1017 new listings last month. This is up 4.7%. So I mean that is awesome. So that's kind of honestly pretty good news if you're a buyer. I guess half and half. The good news is that there are more listings. The bad news is that homes are more expensive. So you know good and bad. So just let's I'm gonna do this just

because I think it's really interesting because El Paso continues to be a really desirable housing market. Why? Because the average price of a home is still relatively low compared to the rest of the country and these numbers I think prove that. So now now we're talking about average which is a little bit

different than median. We were talking about median in that last chart. Now we're talking about averages. Okay so this is going to compare El Paso to all of Texas to all of the United States. So three key points here. This is from May of last year. May of last month. May of last year. So in El Paso the average

price of a home was $282,000. Okay the average price of a home in Texas $397,000. The average price of a home in the United States $447,000. Okay so now this one's just kind of more interesting. The average size of a home in El Paso 1,939 square feet. Average size of a home in Texas 2,073 square feet. And the

average size size of a home in the United States 1,861 square feet. So it is true that everything's bigger in Texas. So that that squares. And then finally the average listing price per square foot $150. Remember this is average not median. Well median was $139. Average was $150 a square foot in El Paso. In the

state of Texas $190 a square foot. Think Austin, Houston, Dallas. And then the average listing price per square foot in the United States $226 per square foot. Okay so I mean $150 a square foot in El Paso $226 is the national average. That's why El Paso remains such a strong market and desirable market. And speaking

of that here's just my two cents on on what I'm seeing in the El Paso market. Like I said El Paso is still a high demand city. Not only do we have a ton of military that's moving here and they realize like hey I was I literally one of these five closings I was talking to a gentleman today in the military and he

was like El Paso's like this hidden gem. Like a lot of people in the military don't know it but El Paso once you get here you're like man like this is one it's a nice city and housing is actually affordable here. There's a lot of opportunity for investment and so El Paso remains a very popular place but

not only for military. Realtor.com did the data and said that El Paso was a number one city for relocating buyers last year. Like you know of course homes are going to be in demand here because a lot of people are moving here. Like dare I say we're kind of blowing up. Okay so now another thing that I'm seeing in the

market is yes there are less buyers because as interest rates rise buyers can afford less home and maybe they can't afford a home at all anymore and they were barely affording a home affording a home with a 3% interest rate and now that it's 5.6 they can't afford a home. So yes there are less buyers in

the El Paso real estate market but the buyers that remain are like hungrier and more more motivated to get under contract now because the interest rates keep rising and so while there may be fewer buyers in the market the buyers that remain they are hungrier than ever to get under contract and they are still

aggressively competing for homes. So we're definitely seeing that. What else are we seeing? Inventory is up. There were a hundred and three new listings on Monday alone. Like I can't remember the last time where I looked on the MLS in the morning and there were over a hundred new listings in a day. Like that

is pretty awesome. Now it is summer, school's out and if you're selling your house it's time to sell your house so that helps but inventory is definitely looking up and then one other thing that we're noticing this is El Paso but it's also kind of all of the country. Luxury homes now typically that's like a

million dollars and over. In El Paso that's like five hundred thousand dollars and over. Luxury homes are though in low supply and in it's kind of in high demand so if you're a luxury homeowner out there in El Paso and you're thinking about selling your home now still is definitely a pretty good time

to do so. So that's my little take on the El Paso real estate market. I'm trying to keep it short I apologize for talking so fast like a crazy person but like I said I just wanted to get that information out to you clearly concisely and not take up too much of your time on that. Well we're speaking of

taking up your time we're gonna start doing some YouTube live stuff. Once a month at least we're going to do kind of a buyer orientation YouTube live so myself, Leah Alejandro, we're gonna hop on YouTube live in the evening after everyone's off for work and just kind of be on there and if people want to ask

questions about you know the city, what's it look like to relocate, questions about loans or any of that kind of stuff we're gonna be there to talk about that and then also we're gonna start doing some seller presentations as well. If you're thinking about selling your home these are the kinds of things you ought

to think about. How much you know could it sell for? When's the best time to sell? What should I do to get my home ready to sell? All of that kind of stuff so we will certainly keep you posted on that. If you're not checking us out on the other social media platforms like Facebook, Instagram, TikTok, all of that

please consider doing so. We're putting out a lot of short-form content that's kind of more neighborhood, local kind of interest stories, things that we find fascinating, things that are going on in El Paso. So aside from that again we hope that everybody out there is doing fantastic. Please reach out if there's

anything that we can do for you and we'll see you next time. you