Interest Rates Have Risen, But This Couple Wants Their ‘American Dream Home’ Near The Beach


This week on “American Dream House”, we returned once more to the Gulf Coast of Texas – and the city of Galveston.

“American Dream Home” has already visited this coastal city twice.

We are returning to this place because what you get for your money here continues to be a source of strength for homebuyers desperate to stay within their affordability parameters.

This becomes all the more important as we have seen interest rates rise again this week.

FED RAISES INTEREST RATES BY 75 BASIS POINTS FOR FOURTH STRAIGHT MEETING

The Federal Reserveas expected, raised the overnight lending rate by 75 basis points.

It affects everything we use in this country, from our credit cards to our mortgages and car loans.

A lighthouse and house at the entrance to the ferry to the south side of Bolivar Island from the port of Galveston, Texas are shown. Home prices in Galveston rose 13.8% in September 2022 compared to September 2021, according to Redfin. (iStock/iStock)

In September 2022, home prices in Galveston were up 13.8% from September 2021, Redfin reported.

The median sale price was $397,000, with most homes selling after 24 days on the market.

‘JURASSIC RETREAT’ IN WASHINGTON ON SALE FOR 1.29M AS A PROFIT INCOME PROPERTY

The pace of sales, however, is slowing – a trend we’ve seen across the country.

Houston developer Satya will construct a 10-story condominium building in the Galveston area – the first beachfront project in 15 years.

In September of this year, 136 houses were sold, compared to 167 houses sold in the same period last year.

Galveston is a somewhat competitive housing market, but that’s why “American Dream Home” has filmed there several times.

Many markets around the country are highly competitive, and in places like Miami, low-income shoppers are overpriced.

Galveston Beach

A view of the beach in Galveston, Texas. Even though mortgage rates have gone up, some homes are still getting multiple hot market offers. (Jennifer Reynolds/The Galveston County Daily News via AP, File/AP Images)

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.

This is something to consider as mortgage rates have gone up making buying a home less affordable, not more.

HIGH SCHOOL SWEETHEARTS IS SEARCHING ‘AMERICAN DREAM HOME’ IN TENNESSEE

Still, some homes receive multiple offers in South Texas.

The hottest houses that are probably the right price to enter the contract after only nine days on the market.

Texas Florida sign

Many housing markets around the country are highly competitive — and in places like Miami, low-income buyers are priced out. (iStock/iStock)

New York home buyers searched for “moving to Galveston” more than any other metropolitan area, followed by Los Angeles and San Francisco.

And soon, Houston developer Satya will build a 10-story condominium building in the area.

This is the first seaside 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 be in Galveston, Texas.

“American Dream House”, hosted by Cheryl Casone, airs every Wednesday at 9/9:30 p.m. EST on Fox Business and airs on Fox Nation.

For more on a couple’s search for the right beach house in Texas, watch the video at the top of this article, or Click here to access it.

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