I am sure you have all encountered various crazy stories lately about the Real Estate Market in DFW. One writer describes it as like sitting in the shade in August, slightly cooler but still hot; especially compared to the rest of the country.
The recent rises in mortgage rates has affected the market. And I personally think the extreme heat has an effect. For the past year it has been: list the house on Thursday, have an open house on Saturday and receive 8 to 20 offers (some over list price) by Sunday. These days… the Listing Agents are putting in more work and we’ve got to be patient. Our average days on Market in DFW is now 8 days. Still a fairly short time; but in the mind of the sellers and buyers, it’s huge.
Mind of the seller: Why didn’t I sell my house in a day and over the list price?
Mind of the buyer. The house did not sell in one day. What’s wrong with it? Maybe I don’t have to offer over list.
The market has shifted. It may be a minor shift but it has changed. And actually, this is a good thing. It is good for the buyer, and it is not a bad thing for the seller. There is more inventory so the buyers have more choices. The buyer does not have to get into a bidding war and pay over the appraised value.
The sellers may not get way over the sales price but they are still getting the market value. That market value increased by 30% last year. Even if the sellers are not getting over list price, they are still 30% ahead.
The real estate market isn’t crashing. Predictions are that we will still see a market value rise of 5% this year compared to last year’s 30% rise.
3% to 5% a year increase is normal for our area.
Even with a SHIFT, overall inventory is low and there are still thousands of people moving to our area. Still a good time to sell and it is a better time to buy.
We now have raised interest rates on mortgages, and after a huge push for homes the past year, the market is a bit more "manageable" this month. There are more homes for sale, and they aren't simply flying off the market in record times. Now's a fair time to look around and see what's what!
I'm happy to talk this over with you and help you project out home values and the appreciation increases in the next few years, whatever your unique situation happens to be. It's different for everyone, so let's get into the details together.
BUYERS: Unfortunately, there's tough competition for homes in our area right now. See this recent news about the explosion of buyers in Denton County and the incredible pace to keep up and try to bid on "ok" homes to live in.
Still, I'll investigate for you and put in the work to get you a spot where you want to be. It's still a good time to invest!
Not to overwhelm, but if you look at this list of 30 Spring Cleaning ideas, you can read it as good suggestions, instead of a list of 25+ things you may not get to do for a while!
Or, go with their suggestion and try one a day for a month?! Good luck!
Here are some points that we thought were interesting:
-Steam Cleaner to spruce up the carpet?!
-Air out bedrooms:"Day 5: Air Out the Bedrooms"
The video below -- The Three I's -- well, the first point is inventory. And it speaks to what we're sensing in the market right now.In January 2021, the number of homes for sale was 26% below the level hit in January 2020. Last month we were 42% below January 2020. So, we're saying that buyers continue to bid up and up, and the prices keep rising. The reason it's not failing is that the demand for housing is also there. Low supply, high demand.
And it's just not possible to see where it's all going. You know; look at money markets right now too.
For a research look, looking at projections from Zillow, CoreLogic and Fannie Mae, see this article from Fortune:
And--> there are various predictions.
We'll walk through it with you!
These reports might seem large, even overwhelming, but it's good news for our area! It means your home (or potential home) has good value and it's going up. It means getting properties in our area is a steady asset. Job growth and stability in our area means we've had growth and it will benefit for years. So, let's help you invest! It's time to buy, if you can. Let's talk!
“Mainly supported by a strong job sector and a healthy economy, the residential sector in Dallas has seen amazing growth,” researchers say. “Not only did the pandemic not slow the market, but 2020 and 2021 saw the highest numbers of permits issued for new single-family homes in the entire decade—44,000 and almost 50,000, respectively.”
StorageCafe ranked the nation’s largest metros that have seen the most of new real estate construction from 2012 to 2021.
It's 2022! Housing & You:
Into this new year, we are excited for the moves we can help you make. And our area is still full of valuable investments!
Dallas-Fort Worth remains an undervalued market, with a home value-to-income ratio of 3.0 compared to the U.S. ratio of 3.3. Its home-to-income ratio is lower than that of Austin (4.0) and that of major metros such as San Francisco (6.0), San Jose (7.3), Los Angeles (7.9), New York-Newark-Jersey City (4.9), Boston (4.1), or Washington DC (3.7). Located in a state with no state tax and with affordable home prices, the US Census Bureau estimated that about 58,000 people moved to the Dallas-Fort Worth on a net basis from other states in 2020, a pandemic year. Among the top 10 undervalued markets, it has the highest share of the population that is aged 25 to 44 years old, making up 29.1% of the population compared to the national average of 26.7%. Strong migration into the area will continue to create upward pressure for home values to increase further in 2022.
Ok, yes, there's averages and percentages in there, and I can spell all of that out for you. Bottom line: Even with a rise in prices and little inventory, D-FW continues to shine as a market worth buying into. There is much room for homes/land to appreciate and projections of more folks looking to move into the area.
So let me look with you about making a move, investing in a property or fixer-upper, or other interesting buying/selling prospects.
Each scenario is unique. But honestly, that makes it fun and worthwhile! So reach out and put us to work for you in 2022.
Happy New Year,
It’s been a crazy (and good) year. Covid, the move to Keller Williams, covid going away, covid coming back with the Delta variance, crazy crazy.
One great thing has been the move over to Keller Williams DFW Preferred in Coppell. I LOVE IT HERE!
The agents I get to work with are great. The energy in the office is great, and the training that is available is GREAT. (Especially when I teach!) We have a strong TEAM atmosphere here, and an abundance mentality that I didn’t previously know. I loved my time at REMAX and I have the utmost respect for Mark Wolfe who owns it and is the broker, but something was missing for me. OHT’s business was good, but something was missing.
For years I’ve been pondering leaving REMAX and going out on my own.
A solo broker, doing my own thing. Then I was approached by an old Chili’s manager (Chip Mundy) about moving to Keller Williams and becoming the Designated Broker. Perfect fit. Great timing....
Fox Business News reported this month:
The competition to snag your home now looks to ease,
"with August seeing the fewest competing offers so far this year. About 58.8% of the home offers by Redfin agents faced competition, a new low for 2021, according to the technology-powered real estate brokerage. This is a decrease from the revised bidding-war rate of 62.1% a month prior and it's well below the "peak of 74.3% in April,"
according to Redfin.
Here's the Original Article: https://www.redfin.com/news/real-estate-bidding-wars-august-2021/
The August rate is also lower than the bidding-war rate of 59.4% reported a year ago. "While sellers continue to have the upper hand, buying a home has become slightly easier this summer as the country's acute shortage of homes for sale is no longer intensifying and the market has undergone its typical seasonal slowdown," Redfin said. Although sellers are still pricing their homes "very high," not all buyers are biting.
--- Let's guide you in your search, and when to take a BITE this fall. -Pat O.
These extensive numbers are helpful, for a statewide view. Here are some highlights from this very thorough report. Report here.
Total Texas housing sales increased 2 percent in May but continued to normalize from elevated levels the last few months of 2020 amid constrained inventory, especially for homes priced less than $300,000. The Residential Construction Cycle (Coincident) Index, which measures current construction levels, elevated nationally and within Texas due to improved industry wages, employment, and construction values. The Texas Residential Construction Leading Index, however, decelerated as building permits (weighted by market value) and residential starts decreased and rates on the ten-year real Treasury bill increased. Still, the overall upward trend indicated stable future activity. Houston and Austin reflected statewide fluctuations in weighted building permits and residential starts. Houston's leading index declined, while Austin's metric remained on an upward trajectory. The Dallas-Fort Worth (DFW) and San Antonio indexes also suggested steady construction in the coming months. (For additional housing commentary and statistics, see Texas Housing Insight at recenter.tamu.edu.).
Dallas added 17,400 jobs, roughly half of the statewide gain, rebounding from a net loss of 2,600 workers last month amid layoffs in the goods-producing sector. Employment in Austin and Fort Worth grew by 2,300 and 2,000 workers, respectively.
"Although it's still expected to favor sellers for the foreseeable future, several key indicators suggest the wild housing market may soon start to cool off. At least a little bit." -- data from Seattle-based Redfin Corp. found rising number of homes for sale nationwide, so much so that they surpassed 2019 levels during the four weeks that ended July 4 (Of course 2020 was just too strange to quantitate. But compared to 2019, this is the first time this year this has been the case.
Write something about yourself. No need to be fancy, just an overview.