If you’re a consumer who is looking to buy, or a homeowner who is thinking about selling, it’s the homes priced under $200,000 that are most in demand in Texas.

The housing rush is still on with mortgage rates remaining near record lows and with financing companies designing creative loan products to make getting a mortgage loan easier. Without affordable housing options, the dream of owning a home would not become a reality.

Despite being such a large and populous state, Texas ranks a shocking 42nd of 50 states in homeownership. According to the U.S. Census Bureau, 65.9% of Texas households owned their home in 2005, compared to 68.9% nationally. And in Central Texas, for example, a record 24,539 homes were sold in 2005, up 18% from 2004. But, the supply of houses on the market – including those selling for under $200,000 – dropped 14% in Central Texas, while it was growing dramatically in other markets.

Tips for buyers
Not to worry, say most experts. There are many ways buyers can ensure they’re buying a home they can afford. First, be up-front with your Texas REALTOR® about what you can afford. Just because you may be pre-approved for a certain loan amount doesn’t mean you have to purchase a house that costs that much. Houses under $200,000 are harder to find in some markets, but they are out there. If your REALTOR® understands what your upper limit is, he or she will be sure to only show you homes in that price range.

Many REALTORS® work hard to develop relationships with newer home communities, some of which specialize in homes priced under $150,000. If he or she knows you’re looking in that range, there will be more options for you to consider.

In the major metro markets, housing under $200,00 tends to be more plentiful in the suburbs – a great option for first-time homebuyers – with supply ranging from three-and-a-half months to more than nine months.

Talk to your lender to see if you can get pre-approved for a loan or, if you’re having trouble coming up with a downpayment, look into downpayment assistance programs. You can ask your Texas REALTOR® – many are knowledgeable about special bond programs, downpayment assistance, and other money-saving options for buyers.

Helping more Texans become proud homeowners
Statewide, there are several initiatives in place to encourage more affordable housing and create more avenues for consumers. For example, in 2004, the Texas Association of REALTORS® established a housing initiatives committee.

• Get more Texans into homes
• Educate the 80,000 REALTORS® in Texas about affordable housing issues and ways to help first-time homebuyers
• Educate consumers on the homebuying process, and what programs and options are available to them
• Construct affordable homes
• Communicate among the 90 local REALTORS® organizations in Texas and nonprofit organizations that can help make more housing affordable
• Help more Texans get into affordable housing and stay there.
• Rehab existing housing
• Provide financing (access to capital)
• Remove impediments to affordable housing on the development side
• Make municipalities more accountable

Texas REALTORS® are also learning about more affordable housing options they can pass on to you – the consumer – with continuing education classes offered through United Texas, a partnership among the Texas Department of Housing & Community Affairs, Texas Veterans Land Board, Texas Association of REALTORS® and Fannie Mae.

United Texas is designed to help Texas REALTORS® help more first-time homebuyers get financing and purchase a home, and REALTORS® take the classes so they know just where to direct you for low-cost financing, assistance programs, and many other options to make the dream of owning your own home a reality. Texas REALTORS® who take the United Texas course are armed with information to help you get a good deal on your mortgage financing, especially if you’re a first-time homebuyer.

Ask your Texas REALTOR® for more information, or choose a REALTOR® who is familiar with the United Texas program and its options. After all, homeownership promotes stable communities and has a positive effect on local, state and national economies. It also has many advantages for consumers, including the ability to deduct mortgage interest and local and state property taxes from federal income taxes.

Keep in mind that housing still remains an attractive option in Texas, compared with the rest of the country. And, there are many ways you can get into a home of your own – with patience, smart financing and a knowledgeable Texas REALTOR® on your side who can help you explore options.