The North Texas housing market continued to cool in August after record sales over the past few years, but we have yet to see a significant drop in home prices.
Home sales in Dallas-Fort Worth fell 10% in August from a year earlier, according to the report. latest report Based on realtor data compiled by Texas A&M University’s Texas Real Estate Research Center and North Texas Real Estate Information Systems.
Housing inventory soars 18,364 listings, up 68% year over year. In the domestic market, in August he had two months’ worth of inventory, still well below six months’ worth of inventory, which is considered balanced between buyers and sellers.
The median metropolitan area home price was $415,000 in August, up 15% year over year. Collin County saw the biggest drop in sales, but median home prices were still up 20% to about $621,000, the highest of any major North Texas county.
Rapidly rising prices following record-low mortgage rates are alienating potential buyers. According to a weekly survey released by Freddie Mac, the average interest rate on 30-year fixed-rate mortgages reached 5.89% as of Sept. 8, the highest level since 2008. The rate was just under 3% when he was a year ago. This difference can add hundreds of dollars to a buyer’s monthly payment.
a new research A study by StorageCafe, a division of Yardi, found that buyers need to earn $70,000 or more to pay their mortgage and save a down payment within five years.
“Buyers can’t stand rising house prices and rising interest rates. You can take one, but you can’t take two.
Eisenberg said the best news for the crowd is that the economy is not in recession. He said he expects the Federal Reserve to continue raising interest rates, which could lead to a recession in early to mid-2023.
“The economy is slowing, there is no doubt about it,” Eisenberg said. “Whether we go into recession depends almost entirely on interest rates.”
Former Keller Williams CEO Chris Heller told many agents that this changing market will change the way they interact and converse with customers.
“This type of market shift means more opportunities for agents who know what to do and do it well, and fewer opportunities for agents who don’t know what to do and don’t do it. Well,” Heller said. “So there will be a change. Who will manage the inventory, who will do the business and who will not.”
According to Heller, four to five months ago, agents were telling sellers that they would likely make more money than they expected and would receive 10, 15, or 20 offers at home. . Now the agency is preparing the seller for the next possibility. price cut This is to avoid staying in the market too long.
And earlier this year, agents had to offer buyers more than they thought the home was worth, not to be too picky, and they may not have gotten the home they wanted. warned, he said.
“Now the conversations with them are why should they buy, what’s the difference between staying a renter and building someone else’s stock versus owning and building your own stock? We’re talking about,” Heller said.