by Larry DeBerry
on Monday, January 16th, 2023 at 12:41pm.
"Beware of false knowledge; it is more dangerous than ignorance"-George Bernard Shaw quote. In real estate, information can be looked at in many ways and for those who have never really worked with this data it could be confusing. When the national news broadcasts information about the housing market what are they including in that data? Is it just single family homes? Is it condos or townhomes? Is it ranch and land and does it also include commercial real estate? Without the specifics it is hard to know what the data is based on. The market in Collin County for "single family resale homes" is reverting back to a "normal trend" that progressed to the end of 2020. I have often said, that the "markets in our area went completely off a normal trend line" of home sales and inventory. Resale homes basically disappeared compared to the amount of inventory in the years before the pandemic. It caused home prices to escalate way above the norm. For those buying a home it was a very strenuous time. For sellers they were able to reap larger gains on their homes but they also had to pay a premium when purchasing the next one. Not really a win. If they were downsizing then that might be considered a win, however the downsized property they were buying was also much higher than normal. I guess you have to determine for yourself what is a win.
As we move back toward our normal trend lines in real estate, there will be months that dip below the norm before they return to the median. What do I mean? It is not unusual for numbers to be lower because the public has to get use to the market as it moderates. This market could cause hesitation to make decisions on buying or selling. It is up to those in the know to reassure the public that our market is very strong. We have great employment in our area and our economy in Texas has been doing well. This is good news for the real estate market in our area. Already in January, our team has listed several homes and we have received offers on many of them. It is important for those selling a home to understand that homes need to be priced correctly due to increased inventory and to prepare their homes to look the best for the showings on their home. I talk with people every week about how to get the best offer and how to get their home sold in the shortest amount of time possible. With that said, the market in the first quarter is usually slower than it is in the second and third quarters. However, we have noticed that many of the buyers during this period are very serious buyers. What do I mean? Those moving in the winter months are definitely motivated to purchase a home and so it is a good time to sell. Just an fyi for sellers, as we go further into the year, there will be more homes on the market which means that there are more homes to compete with.
The market is changing but it is not "bad" it is just changing in relationship to a more "normal" real estate market. If you want to know more about your specific area, please don't hesitate to contact me.