Factors that are changing the landscape in the Dallas/Fort Worth market.
What has changed in our housing market? There are three main factors driving our shift, and I’ll cover each of them with you today:
1. Interest rates. Interest rates have increased and will likely continue to rise. They’re currently around 5.5%, but many economists predict they could end up around 7% or higher by the end of the year. Rates may be fluctuating now, but they’ll likely continue to rise to combat inflation.
“Our market is normalizing.”
2. Supply of inventory. There are more homes on the market than we’ve seen in a long time, but we still have a relatively low inventory. When I checked the stats in our Dallas/Fort Worth market a week ago, we moved from around 15 days to 45 days worth of inventory. Buyers have more homes to choose from, but they are still competing and paying high prices. We are still in a seller’s market, but conditions are closer to normalizing every day.
3. Home prices. Prices aren’t increasing at the rate they did over the last two to three years. In fact, the DFW market averaged 10% annual appreciation during that time. This type of growth is probably over, but don’t worry—home prices aren’t going to fall, and there won’t be a crash like in 2009. However, we have already hit the ceiling. Slightly overpriced homes are only getting maybe one or two offers, which is why many sellers are reducing their prices.
It’s still a great time to buy or sell in DFW. If you’re interested in learning more about our current market, don’t hesitate to call or email us. Our team will be happy to help!