DISCLAIMER: I'm not an economist, but I know the real estate market in Dallas/North Texas.
There are a few things that we know to be true:
1. Interest rates are higher than they've been in the last 10 years.
2. We may (or may not?) be in a recession.
3. The stock market looks like a roller coaster at Six Flags over Texas.
But, with all that being said, no one has informed the people of Dallas and North Texas when it comes to buying homes. Especially, the builders in the region...
According to this article from the Dallas Morning News "Dallas-Fort Worth builders sold a record number of new homes in the spring, seeing better-than-expected traffic as buyers faced a lack of other options on the market."
The key point in that sentence is "lack of other options". Sellers have been afraid to sell their homes due to higher interest rates, however homes are still going up in value. According to this new article from the Dallas Morning news "Inventory remains low at 2.5 months of supply, far below levels that would be considered balanced between buyers and sellers."
What does this mean for buyers?
Plain and simple, if you want to buy a home... DO NOT WAIT. Interest rates will always fluctuate up and down, but home prices rise at a clip that far outpaces the stock market. And if you don't want to compete with other hungry buyers for limited inventory, shift your search over to new construction. Not only do they offer a product with less risk (i.e., new home with a warranty), they aren't in the business of holding inventory, so they hold sales and offer incentives.
What does this mean for home sellers?
If you're thinking about selling... DO NOT WAIT. Interest rates have continued to climb, and the higher the interest rate the less buying power is available. If you're concerned about the interest rate on your next purchase, the old adage is "Marry the house, and date the rate". Regardless of interest rates there are still a ton of people moving into the region, and fewer homes than potential buyers. The laws of supply and demand are in your favor.
If you're thinking about buying, or selling, contact me today for your free consultation to discuss the housing market and what options may be best for you. And if you found this info helpful, feel free to #HitThatShareButton
