Lubbock Home Prices Begin to Fall as Texas Market Faces Correction

Texas' home market is experiencing a correction, and Lubbock is already feeling it. Newsweek says that home prices across the state are starting to fall. This could mean that prices will become more realistic and that there will be a buyer's market.

In January, home prices in Lubbock dropped by 1%, more than in many other Texas towns. According to experts, Lubbock will continue to decrease in value, just like the rest of the state.

Prices dropped 1.8% in January in Austin, and they're expected to drop another 0.4% by October. The drops are even worse in smaller places like Zapata and Pecos; in Pecos alone, they're almost 10%.

Why did the drop happen? It comes down to what people want and need. There are just too many homes for people to buy, and even though prices are decreasing, people still can't afford to buy. Mortgage and tax payments comprise 32.5% of family income, much more than the historical average of 23%. This means that fewer people can afford to buy a home.

Insurance rates are going up, upkeep costs are going up, and Texas's oil and migration economies are slowing down.

Still, declining prices might be good news for people who want to buy in Lubbock. Someone in the area said they had been watching the market for years and finally got a good deal this year. "Correction" might be the right word now that prices that were too high before are starting to return to normal.

As 2025 goes on, though, sellers may have to deal with more arduous negotiations and longer listing times.

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