Texas Housing Market ‘Corrects’ In 2025. Will Lubbock Be Affected?

According to Newsweek, Texas housing prices are facing a "correction," that is, a decrease in sale value that more appropriately aligns with the house's actual worth.

 Will The Texas Market Correction Affect Lubbock Home Prices?

Going by recent trends, the answer is a resounding yes. Back in January, Lubbock housing prices fell 1%, which was higher than many other markets. If all of Texas is trending down in home prices, it appears that Lubbock will follow suit.

Which Texas Cities Are Seeing The Sharpest Decline In Home Values?

The leader of the pack is Austin, with a decline of 1.8% this past January, and a predicted further fall of .4% by October, leading experts to believe that by the end of the year, Austin will be "a complete buyer's market."

Read More: Texas, Californians Are Now Moving To A Different Southern State

Additionally, some smaller Texas towns are expected to see steep declines, like Zapata at over 7% and Pecos at nearly 10%. Meaning a $200,000 home in Pecos might only be worth $180,000 by the end of the year- a significant loss if you are the seller.

What Is Causing Texas Home Selling Prices To Decline?

The very basic tenet of Supply vs. Demand seems to be the main driver of decreased home prices. There are many homes on the market and not enough people to buy them.

Which may lead you to ask, "WHY isn't there enough people to buy them?" Because Texas is quite a populous state. Affordability, even with lower prices, is still a factor.

the typical mortgage and tax payment now consuming 32.5 percent of a household's gross income [...]significantly above the historical average of 23 percent.

Read More: Realtor.com Is Moving Its Headquarters From California to Texas

Add in home insurance, heating/cooling costs, and pricey repairs, and the number of potential home buyers plummets, even if there are people who would otherwise love to own, rather than rent, their home.

Other experts point to more Texas-specific issues, like the Texas-migration boom majorly slowing down, and the slowdown of oil manufacturing in the Permian Basin.

Is A Lubbock Home Value Decrease A Good Thing?

Certainly, if you are a potential buyer, this could present an excellent opportunity for you. I purchased my home a couple of months ago, and I'm very satisfied with what I paid vs. the beautiful home I received. I had been casually shopping for years, and this was the first time I felt like I wasn't going to vastly overpay for an inferior house.

I think "correction" is the correct term- homes were too costly, and it kept too many people from realizing the dream of home ownership. Now, if you're trying to sell your house, you may have a very different opinion.