The Texas Real Estate Research Center (TRERC) predicts that the housing market will gain some stability following the end of "pandemic induced home shortages."

Supply chain bottlenecks, high material prices and labor shortages are hampering the home construction industry, Marketplace reports.

The TRERC reports that the average number of days on the market for homes (DOM) in Texas is 34 days, a new record. In Austin, the DOM is 18 days, Dallas/Fort Worth 25 days, San Antonio and Dallas 35 and 36 days respectively.

The months of inventory (MOI) is the current supply of homes offered for sale relative to the number of homes being purchased. The result indicates the number of months it would take to sell all properties currently for sale at the average monthly sales pace. An MOI of six months is normal. Texas' MOI is 1.2 months, told by the TRERC.

Furthermore, interest rates on mortgages are expected to go up slightly by the end of the year and the historically low interest rates that have been steady throughout COVID-19 are expected to come to an end by the end of 2022.

"For 2022, researchers expect the supply of homes for sale to increase and housing demand to remain relatively strong," the TRERC reports. "This will move the housing market back into balance and cause home price growth to slow."

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