The state of the real estate market nationally and in DFW has been hotter than ever of late. Price appreciation skyrocketed the past two years leading to record home prices throughout DFW, lines going around the block for open houses and families and individuals forced into intense bidding wars in order to secure a home.
Let us tell you what we are seeing statistically and personally in our transactions and business at M&D Real Estate and give you an insider’s look…
1) Home values have increased more in DFW than anywhere in the nation. It was announced just last month that home prices in DFW had jumped 40% since April 2021, the largest home value increase of anywhere in the nation – led mostly by corporate relocations.
2) Interest rates have been rising with the 30-year now at around 5.5%, up from 3.29% since just this past December 2021.
3) Mortgage demand has fallen to the lowest point since 2018 nationally, with 14% less people applying for a mortgage than this same time last year.
4) Home sales spiked this past week in DFW, with 41% more homes listed for sale than the same time last year as sellers worry they may miss out on the red-hot market. In fact, we saw more homes listed for sale in the area in April 2022 than we have in FOUR YEARS.
5) Our realtors have reported, just this week, that they have seen some of the following signs of a moderately cooling market in the area:
Also, inventory (the number of homes available and currently for sale) is ever so slowly building with 100% more homes on the market for sale this past month in Rockwall County than there was this time last year. In January, there was less than 1 month supply of inventory. This month, there is 1.8 months supply of inventory on the market. So inventory is definitely starting to climb…
Some who have been on the fence about selling may have cause to worry the red-hot housing market might soon slow down somewhat, and are opting to get in while the getting is still good. No one can say, but we have seen this lately with interest rates rising. Buyers may be still seeing high prices, of course, but you may be fighting against less bidders and offers than there were for a home now than even just a couple of months ago. The consensus? Over the next couple of months inventory’s should build giving more buying opportunities.
We still see a market in DFW ripe for sellers, high in demand due to population growth and other factors, but perhaps — we may also be seeing a market beginning to cool a bit with interest rate increasing and buyer fatigue setting in, and in some cases, over priced homes.
If you are looking to sell, you may want to jump in now before the market potentially changes much more for sellers. If you are looking to buy, we would say do not hold out for more inventory and look for prices to possibly normalize in the coming weeks and months with a slower rate of appreciation and a tad bit less competition for available inventory.
As always, our real estate agents here to report the latest to you and help you in ANY market sell your home for the highest price or get the best deal if you’re on the buying side. So if I can be of any help, please e-mail or call/text anytime and we will work through your family’s goals to find the best way forward and put money back into your pocket!