Buying a home in Waco is creating challenges
Updated: Aug 11, 2021
My family and I are trying to buy a house here in Waco. In case you haven’t heard, that’s hard to do right now. Luckily, we have some generous friends who are allowing us to crash at their place for a few weeks while we get things ironed out.
We have made an offer on seven houses. (I think?… My wife would know for sure.) For at least two of the houses, we know we were the highest bid, but we lost out to some cash offers.
The recent decision of our city council to limit short-term rentals should help the supply of housing for sale, but the impact of that change might not be felt for a while. For now, we are left at the mercy of sellers who we can only hope will see some value in our offers and take mercy on a family trying to finance their home.
Increasing home prices can have ripple effects on rental prices, as well. As my wife and I consider the possibility that we may have to rent for a few months and try to ride out this real estate wave, we are realizing that the cost of renting is rising along with the cost of buying. In some cases, the cost of renting is as high as the cost of a mortgage, but without the benefit of building equity on an asset.
I imagine this squeeze is being felt especially hard for first-time home buyers, especially those who are looking for low-cost homes to buy. About once or twice a week, I hear rumors of West-Coast investors paying cash to snatch up homes to flip, but I’m not sure how or whether those rumors can be verified. The current difficulty of our housing market has more to do with the current low supply of homes for sale than with a surplus of potential buyers.
So please sell me your house, but only if it’s a house I’ll like. We’re not currently in the market for houses we don’t like.
Jeremy Rhodes is director of research and community impact for Prosper Waco.