By OBBM Network Editorial Staff

Travis Spencer

The US housing market is witnessing a shocking phenomenon: while home prices in Texas are plummeting, those in Ohio are soaring. This disparity has left many wondering what’s driving these trends and what the future holds for the housing market. According to Travis Spencer, host of Real Estate Mindset, the answer lies in a combination of factors, including inventory, affordability, and job growth.

Inventory and Affordability

Spencer notes that Texas is experiencing a significant decline in home prices, with Austin and San Antonio being the top two declining metro areas in the nation. In contrast, Ohio is seeing a surge in home prices, with the state’s inventory levels 27% below pre-COVID levels. The average home price in Texas is $302,550, while the median household income is $63,000, making affordability a major concern. Meanwhile, in Ohio, the inventory growth is largely driven by new construction, with many builders competing for buyers.

Job Growth and Migration

Texas leads the nation in job growth, with a strong labor force and low unemployment rates. However, despite this growth, home prices are not sustainable, and the state is experiencing a nominal price decline in virtually every metro area. In Ohio, the job market is also strong, with a growing labor force and positive migration trends. The state has seen a significant increase in new home construction, with many builders offering incentives to attract buyers.

Methodology and Raw Data

Spencer emphasizes the importance of using raw data to understand the housing market. By analyzing data from sources like Zillow and Realtor.com, Spencer is able to identify trends and patterns that might not be immediately apparent. He also highlights the need to consider multiple factors, including inventory, affordability, and job growth, when evaluating the housing market.

As Spencer notes, ‘It’s not a matter of unaffordability that people aren’t buying. It’s a matter of not having the inventory to buy.’ This statement underscores the complex interplay between supply and demand in the housing market. With the right data and analysis, it’s possible to gain a deeper understanding of the trends shaping the market and make more informed decisions.

In conclusion, the disparities between the Texas and Ohio housing markets are a reminder of the complex factors driving the US housing market. By examining inventory, affordability, job growth, and migration trends, it’s possible to gain a deeper understanding of the trends shaping the market. As the housing market continues to evolve, it’s essential to stay informed and adapt to changing circumstances.

The full episode of Real Estate Mindset is available on OBBM Network TV.

Watch Real Estate Mindset on OBBM Network TV: https://media.obbmnetwork.tv/embed/tv.html#series/real-estate-mindset