So far in 2022, rising interest rates and limited inventory have presented buyers with a challenging landscape, although a strong job market and sales figures suggest the market remains in good health.
Recently, we’ve seen a boost in inventory, so let’s dive a bit deeper into the numbers to better understand what’s driving these changes.
Starting with contract activity, we’ve seen a steady increase in contract activity heading into the selling season, although at a lower rate than last year. This is expected given the continued rise in interest rates and low levels of inventory. With rates expected to jump a few more times this year, we expect to see buyers continue to push to find a home before the next rate increase.
The past two months have brought some welcomed good news for buyers, as we’ve seen the number of active homes on the market increase by 50% since the beginning of March. Inventory remains low and competition remains high, but the increase may give weary buyers a bit of breathing room as they continue their search.
Moving on to the number of new sellers coming on the market, the other figure we closely track as a market indicator, we’ve seen a steady increase in new sellers hitting the market since the start of 2022, recently outpacing figures from 2021 and contributing the recent inventory growth mentioned above.
With price growth predicted to slow in the coming years, sellers find themselves in a position to cash in on the equity they’ve gained over the past two years of heavy growth, then make their next home purchase before the next jump in interest rates hits.
At a high level, we’ve been asked a lot lately if we think the market is going to crash. While we expect a slow down in price growth, the economy in DFW remains strong, and for many relocating from more expensive states, our prices are still very reasonable in comparison. With homeowners in a much better equity position than in 2008, we believe the market remains in good health.
As we move forward in the year, we’ll be keeping a close eye on these changes in our market. If you have any questions about the real estate market here in Dallas-Fort Worth or our programs designed to help our clients stand out with cash offers, give us a call at 214-267-9222 and our team would be glad to assist you!