ODESSA, Texas — Much like the weather in the Permian Basin during summertime, the average median price to buy a home in Midland and Odessa has gone up.
A lot of the price increase seen in the Permian Basin has to do with supply and demand. During the height of COVID-19, fewer people were moving around, but demand for homes has gone up as the Basin moves through the pandemic.
However, there are more factors than just the pandemic that have had an impact.
"There was a lot of people that have been waiting," Wayne Dunson, associate broker with Steve Oliver Realtors, said. "So we just saw this like mini-boom out here, where folks that have been sidelining all these big decisions decided to move all at one time. And so that increased demand and really pushed the prices up. Not crazy initially, but it definitely caused numbers to go up out here."
Another factor that has had an impact on prices involves the price of supplies.
"You have land prices, and when land prices go up, well then the base cost of all your housing is going to go up," Dunson said. "Then you also look at supply and demand, and so when the cost of our materials goes up, you know at one point lumber was just sky high."
As the Fed continues to increase interest rates, Dunson said that you'll start to see the market cool off, which means more stable prices.
"I wouldn’t anticipate there to be a whole lot of decrease," Dunson said. "We may see what I would call stabilization of the market, where we’re not going up, we’re not going down. Things are just kind of constant, and that all has to do I think a lot to do with interest rates."
Buying a home is a huge investment, even when inflated prices aren't part of the equation. Dunson said before you buy, talk to a pro.
"Call your realtor, talk to them, and get the real stats, because we do have the statistics available so that we can show you the numbers," Dunson said. "Get with a good mortgage lender, take a look at the rates."
Active listings for homes are up in Odessa, with over 500 for June. Midland has actually seen active listings go down, with only over 400 in June.