We are continuing to compare markets to same time over the past few years. In Dallas/Fort Worth, we’re looking at 19%-23% increased market activity when we compare 2015 to 2018. We’re looking at more homes still on the market and homes that are expiring and resetting days on market or waiting to re-list. We have been in such a tight Seller’s market, we are now swinging back towards a more balanced market. When you look at real estate, it swings on a pendulum, so we know it could swing back towards a Buyer’s market over the next 18-24 months.
When we look at the factors that dictate the market, we have:
- Employment
- Interest Rates
- Affordability
- Overall Economic Health
In the last downturn, we had the stock market fall, unemployment surge, ARM (adjustable rate mortgages) go from 2-4% loans jump up to 8-10% loans and overall affordability on the edges of the country hit a max capability. Currently in our market, we have low unemployment, relatively low interest rates, and a healthy North Texas economy. With prices rising like we discussed last week in our market update, we’re seeing affordability drive our adjustment in pricing. If other factors stay more neutral, then our correction could be less than the last one. If we had a full crystal ball, we’d probably be in a different field.
Never the less, we’re committed to watching the market and will keep you up to date on your prices. If you are interested in getting a personal Market Insight for your area, please let us know and we’re happy to set it up for you.
Happy selling.
Seychelle & Team
