Midland edging towards a balanced housing market

MIDLAND – Median home prices made their sharpest drop in almost two years in January, and housing inventory is at a four-year high, according to new numbers from the Real Estate Center at Texas A&M.

Midland ended January with median prices down 6.1 percent year-over-year and at least five months of housing inventory.

"Right now, we’re getting to be to where it’s no longer a seller’s market," said Warren Ivey, a Midland Realtor with the Texas Association of Realtors.

The change can be attributed to eight straight months of falling oil prices, which have yet to "hit bottom,” as U.S. production continues to rise and stockpiles grow.

"The market is at least hesitant, nervous, and…the market will hunker down a little bit and wait and see," said Jim Gaines of the Real Estate Center at Texas A&M. "A decline from 125 to 91 is a big percentage, but roughly you’re talking about 100 sales a month."

Gaines is referring to the number of homes sold in January 2014 compared to the number sold in January 2015.

Gaines emphasized that uncertainty is the main factor in the current economy.

Ivey believes that the market is moving quickly and that if the price drop is reflected in February figures he will be more concerned about the market.

* 6.5 months of inventory is considered a balanced market