My answer to the above headline, Bull!!. The sky is not falling! The market is changing but in real estate the market always goes through changes. Let's talk a little about what is causing the commotion about what people are now seeing or starting to see in the Collin County market for resale homes. First, lets look back a little bit over the past two years. Before ever going into the pandemic, housing supply in Texas was already not keeping up with demand. Then the pandemic hit. Wallah! As if by magic, people saw home prices escalating at a phenomenal rate. The shortage of inventory caused a feeding frenzy for the available homes and when that happens prices escalate. This competition between buyers led to multiple offers and offers way above list prices. In this type of market some sellers did not want to put their homes up for sale due to being unsure if they could find another home once their home sold. This situation did not help an already short inventory condition.
The federal government starting raising interest rates recently to hopefully cool down the economy. Here we go again. Every time this has happened in the past it definitely effects real estate. People have to start looking at their monthly mortgage payments and re-calculate what they can afford. Thanks Uncle Sam! However in our area I don't think the interest rate hike will be a major factor. I do believe what we just went through will. Due to the competition for homes it drove up home prices overall. In fact, the affordability index indicated it was making it difficult for home buyers to afford a home based on average annual income. I personally believe this has led to a cooling in demand. With that said, I still believe, due to the job opportunities and job growth in our area that this will continue to bode well for real estate.
The market is moving back to a more "normal market". What does that mean? It means there will be more homes for buyers to look at. Prices will moderate and revert back to or even slightly below list price. Sellers will need to prepare their homes to attract available buyers. What do I mean by that? Realtors look at the competition in the seller's neighborhood and by that I mean, other homes that are on the market there. They compare those homes with the seller's home, The Realtor should look at past sales and use their knowledge of what might bring value or detract from it to help the seller price their home to sell . A good Realtor will look at the amount of showings other listings are getting and build a strategy to attract the most amount of available buyers for the seller's price range. The reason for all this? Buyers are now getting more and more choices when it comes to available sellable inventory. Sellers have to sharpen their pencils and be prepared to have their home in great shape to attract available buyers to their homes.
The sky is not falling in real estate! The important part is to know how to take advantage of this changing market. We at The DeBerry Team of KW do just that. For more than 20 years our team has been helping both buyers and sellers of homes in north Dallas and Collin County. The old saying, "knowledge is power" is ringing true in this changing market. If you would like our advice please give us a call at 214-676-8040 or email firstname.lastname@example.org. Helping people accomplish their home selling and buying goals is what we do. We hope you will allow us to assist you in this regard.