by Larry DeBerry
on Thursday, November 10th, 2022 at 1:48pm.
Really! Come on news, you need to check your historical information. Why do I say that? I read an article recently that said we are in the worst real estate market since the "great recession". My answer, "Bull!" Let me give you some facts using Collin County as an example. In October of 2022 closings were down from the previous year. However, if you look at our 20 year history the average amount of closings were about the same and in fact, if you take out the pandemic years the closings are almost right on their average number of closings for the month of October historically. That's a fact. Has the market changed from the pandemic years, yes it has. Thankfully it is returning to some sanity. What do I mean by that? The two plus years of the pandemic "artificially" affected the market. In other words, "it was not normal." Returning to normal means that our inventory should grow, which it has started but it is still below a "balanced" market. Offers for homes won't be inflated due to competition due to an abnormally low inventory situation. Frustration for buyers will lessen since they won't have to bring large sums of money to closing and they will have the opportunity to "shop" for the home that fits their needs as inventory continues to grow. Sellers, will have to adjust as the market changes. We counsel our sellers that they can still receive great offers for their homes even as the market normalizes. One thing they will need to understand, days on market may be longer due to the increased inventory for buyers to look at. It doesn't mean this will happen in all instances, it really depends on the buyers wants and needs at the time they decide to purchase a home.
Realtors are now going to spend more time helping their clients understand their options as we normalize. Yes, interest rates are higher which makes the monthly payment higher but if you were buying in the pandemic era you would have actually had to spend more money on a home even if the interest rates are higher now. Why? As I stated earlier, you would of had to bring more money to the table to win your offer on a home during the pandemic era. Today, that is not the case. Buyers are not seeing escalating home prices as we saw during the pandemic era. In fact, what is happening now is a return to the "mean". We are returning to the time when home prices rose 4% to 6% percent a year and not 25%. Understanding the dynamics of each market is imperative for both sellers and buyers of residential real estate. We at The DeBerry Team make sure we help our clients understand these dynamics so they can make the best decision possible for themselves and their families. Need advice call Roxanne DeBerry at 214-676-8040.