Can we call 80 degrees FALL? When you live in Texas, we call this “cooler” temps.
As we enter the Fall season, we wanted to post an update on the real estate market.
We hope you find this information helpful in making your real estate decisions for the 4th quarter.
There is still increased demand here in DFW for New Construction which has increased 12.8%
from this time last year. This makes sense when you look at where the bulk of the money inflow
is coming from. Our area has exploded with people to the tune of 400 people PER DAY moving
here over the last two years. This, coupled with the cash injection from larger markets is what
has created a firm foundation on pricing moving forward.
Wondering how prices have kept up? It is mostly California, Chicago and New York cash.
Now with that said, the market has shifted and seller expectations are now beginning to find
a new, lower center. This has to do with elevated prices vs. income + mortgage interest rates
accelerating. The real data paints this picture for existing home sales from 12 months ago in
Existing Home Sales – Decrease of 6,114 units or 3.82%
Average Days on Market – 37 days or an increase of 19.35% of sitting time
Monthly Home Inventory – 2.8 months which translates to an increase of 12%
Although the last significant adjustment in pricing occurred in October of 2008, that decrease
was precipitated by complex subprime mortgage bundling which was an all around terrible
idea. This current state of our market looks more like what a healthy market should look like
and quite frankly what we needed in our area. With that said, we are starting to see a little more
demand picking up again as prices begin to stabilize. We are seeing this in the numbers at a
Brokerage level in addition to more local MLS numbers. Our forecast of the market moving
forward is a more balanced position with more negotiating leverage for the buyers. WOOHOO!
Let’s celebrate that for a moment!
We feel that buying opportunities are being created going into year-end
for the first time in over 5 years!
And finally, here is a little direction from a National Resource. Freddie Ma’s chief economist
who thinks the “spectacular stretch of solid job gains and low unemployment should help keep
homebuyer interest elevated. However, mortgage rates will likely also move up.”
What are your goals in real estate? We’d love to help you create your vision while feeling safe
and protected along the way. Thank you for your friendship, trust and continual willingness to
refer us to those you look out for. We love getting to serve you.
All our best!
Ryan, Cassy, & the Olive Tree Team