The current real estate market can be confusing due to differing opinions and fear-mongering. To help provide some perspective, let’s take a quick snapshot of where we are now compared to pre-pandemic.

In May 2019, South Padre Island had 16 months' worth of inventory. In May of 2023, we had only six months of inventory. Port Isabel had 13 months of inventory in May 2019 and only five months’ worth in May 2023. Laguna Vista had six months’ worth of inventory in May of 2019 and six months' worth in May of this year.

Before the pandemic, it was a strong buyer’s market, and our real estate was undervalued compared to comparable properties in places like Florida. However, in the spring of 2020, things went wild, and we shed that inventory we had been sitting on for so long like it was going out of style.

Many factors came into play to create this buying frenzy, but one of the more interesting factors came about due to the travel restrictions. People weren’t going to their regular vacation destinations, and a new group of people, many from Texas, found our hidden gem.

Fast forward to today, and the feeding frenzy is over. However, plenty of demand still exists for the right property, appropriately priced. One single-family home we listed this past week received three offers almost immediately.

I wish we had a crystal ball to know exactly what’s around the corner. However, our inventory levels have helped create a relatively balanced market for buyers and sellers. Unlike pre-2020, buyers aren’t taking advantage of sellers, nor do they have to offer up their firstborn to have a shot at a place.

Interest rates don’t seem to be a concern, and more people know about our lovely Island now than before all the madness. Barring anything catastrophic, the market appears to be on a nice, stable, balanced path. Only so much can be said in a few words, but I hope this helps add a little perspective when thinking about the local real estate market. Please let us know what you think at tony@nexthomeonthecoast.com