OK, this one is a little text-heavy & dry, but I want to share the latest information on our housing market…..please read on!
The past 6 weeks have given us a remarkable lift in showings, contracts written and sales in Dallas! Buyers are active and looking – the challenge they face is low inventory. Sellers seem to be waiting until Co-Vid is “over”, yet those that have put their homes on the market are having great success. The last analysis I did (last week) showed the MOST active market is the Park Cities which surprised me as it’s one of the most expensive in Dallas. The other areas that are H.O.T. are those that cater to the millennials, which comprise over 30% of the Buyers this year. Most are first-time homebuyers and are looking in price ranges from $350k-$650k. The sweet spot seems to be $400k-$550k – we had a home in Junius Heights that went on MLS on a Friday and by Sunday night we’d had 21 showings. It was under contract by Tuesday at full price and closed last week. This has become commonplace.
For Buyers at any price, it is imperative to (a) work with a qualified Realtor who is an expert in the area you are buying, (b) work with a great lender to get pre-QUALIFIED*, and (c) know your credit score – it’s free on Equifax, your credit card site, or usually on your banking site, and (d) stop spending on anything but essentials so your credit score will not be adversely affected. Why? Because when you submit a contract to the Seller, they will want a Letter of Pre-Qualification before they accept your offer. They don’t want to take the property off the market without knowing the Buyer (YOU) can go the distance.
For Sellers, it’s a great market. There’s less competition and Buyers are incentivized by the lowest interest rates in years.
Researchers are reporting some interesting by-products of people being in their homes for unprecedented numbers of hours weekly – working, home schooling, isolated. Owners have looked closely at their homes, how they live and have come to value things they don’t all have (see graph). Some are even choosing to move further away from the city center where they feel it will be safer.
PRICING: According to Texas A&M Real Estate Center, the Texas median home price contracted 2.3 percent in May, falling to a near-annual low of $240,500. In year-over-year (YOY) terms, the median sale price appreciated just 1.6 percent, the smallest annual change since 2012. A shift in sales composition may explain the monthly decline, but the distribution was similar relative to the same period last year.
The Texas Repeat Sales Home Price Index, a better measure of changes in single-family home values, provides insight into how Texas home prices evolve. Although the indexdid decelerate on a monthly and annual basis, a YOY increase of 3.4 percent suggests the pandemic’s effect on home values has been minimal. Houston’s and San Antonio’s indexes grew less than the statewide measure, rising 2.5 and 3.1 percent YOY, respectively. Austin’s metric jumped 4.9 percent but recorded its slowest rate in seven months. Only in North Texas did the index accelerate, climbing 2.9 percent in Dallas and 4.0 percent in Fort Worth.
BOTTOM LINE – Buyers, get ready before you get serious about going to see homes. And be ready to pull the trigger quickly if you truly find a home you love. The market is great for you right now! Sellers, if you’re considering selling your home any time in the near future, I implore you to DO IT NOW – there’s less competition, and Buyers are in the market!