Interest rates have risen, yet this couple wants their 'American Dream Home' by the beach
Even with rising rates in a competitive market, one couple aimed to find their 'American Dream Home' in Galveston, Texas
'American Dream Home': Couple searches for beach house in Galveston, Texas
Cheryl Casone assists Donna and Barry in finding their dream home for their family by the beach in Galveston, Texas.
This week on "American Dream Home," we once again headed back to the Gulf Coast of Texas — and the city of Galveston.
"American Dream Home" has visited this coastal city twice before.
We go back to this location because what you get for your money here continues to be a source of strength for homebuyers desperate to stay within their affordability metrics.
This becomes even more important as we saw interest rates rise once again this week.
FED HIKES INTEREST RATES BY 75 BASIS POINTS FOR FOURTH STRAIGHT MEETING
The Federal Reserve, as expected, hiked the overnight lending rate by 75 basis points.
This affects everything we use in this country, from our credit cards to our mortgage loans and our automobile loans.
A lighthouse and home at the ferry entrance to south side of Bolivar Island from the port of Galveston, Texas, is pictured. Home prices in Galveston were up 13.8% in Sept. 2022 versus Sept. 2021, according to Redfin. (iStock / iStock)
In September 2022, home prices in Galveston were up 13.8% versus September 2021, Redfin reported.
The median selling price stood at $397,000, with most homes selling after 24 days on the market.
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The pace of sales, however, is slowing down — a trend we have seen play out across the country.
Houston developer Satya will be building a 10-story condominium building in the Galveston area — the first beachfront project in 15 years.
In September of this year, 136 homes were sold — versus 167 homes sold at the same time last year.
Galveston is a somewhat competitive housing market, but that is why "American Dream Home" has filmed there several times.
Many markets in the country of very competitive, and in places like Miami, lower income buyers are being priced out.
A view of the beach in Galveston, Texas. Even as mortgage rates have risen, some homes are still getting multiple offers in hot markets. (Jennifer Reynolds/The Galveston County Daily News via AP, File / AP Images)
I just returned from South Florida, where brokers and developers were telling me the trend is for buyers now looking to North Florida for buying opportunities.
That's something to consider as mortgage rates have risen, making buying a home less affordable, not more.
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Still, some homes get multiple offers in South Texas.
The hottest homes that are likely priced right go into contract after just nine days on the market.
Many housing markets in the country are very competitive — and in places like Miami, lower income buyers are being priced out. (iStock / iStock)
New York homebuyers searched for "move to Galveston" more than any other metro area, followed by Los Angeles and San Francisco.
And coming soon, Houston developer Satya will be building a 10-story condominium building in the area.
It’s the first beachfront project in 15 years. Tiara on the Beach will have 63 residences and ocean views.
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So — your "American Dream Home" may just be in Galveston, Texas.
"American Dream Home," hosted by Cheryl Casone, airs every Wednesday at 9 p.m./9:30 p.m. Eastern time on Fox Business and streams on Fox Nation.
To learn more about one couple's search for the right Texas beach home, check out the video at the top of this article, or click here to access it.