Market Update: Today is a new week, and we are all adapting to new “norms” in our businesses and personal lives.
When it comes to the Real Estate market, here is where we are.
- Are homes still selling? Homes are still selling: 3,409 homes went under contract in North Texas in the past week. There are 18,686 homes active on MLS right now, so we have a 5.48 Months Supply of homes active on the market. There were 1,720 homes that went on the market last week and 3,409 homes that went under contract. That means we’re absorbing almost 2x the number of homes each week under contract versus what is being placed on the market. NOW is a strong time to be on the market or buying because the people looking to sell are NOT DESPERATE, but they are motivated. This means we have willing buyers and sellers and a balanced market, real estate is more rational and reasonable when it’s a balanced market and one side isn’t over the barrel of the other.
- Will this market be like the last downturn? In short response, NO, we don’t anticipate the same outcomes of the last market. Dallas/Fort Worth at the bottom of the last market was down 11% in home market value. Why do we feel this is different? Well, the lenders being too loose with their lending guidelines helped create a large part of the last downturn. This time, lenders have been holding strong on their underwriting guidelines and homeowners actually have equity in their homes instead of being over-leveraged. This means we could see a minor course correction but a drastic drop in housing prices is unlikely to occur.
- How is real estate adapting? Who you work with matters more than ever. Our team has 25 homes currently under contract and 9 of them we helped clients put under contract since Shelter in Place occurred. We have gotten creative and turned our model around to be able to offer virtual staging, photos, consultations, showings and closings all from your home. If you want to keep in tune with a neighborhood or know what your home’s value is, please let us know as we have a shortlist of homes we are watching closely.