Housing Market Shifting in Dallas

Are housing prices going down here in Dallas, Texas. Yes. Yes they are. So stick around while we talk about the shift in the market that we're seeing here in Dallas and what you can expect if you're getting ready to relocate, or maybe just purchase a new home. Now that the market's kind of changing up a little bit here in the Dallas, Texas area. 

Everybody's talking about it. Doesn't matter where you're at, what news channel you're on, what article you're reading or Facebook post everybody's talking about the market and the crazy change in housing, interest rates, supply and demand and everything in between. So what is it that we're really seeing and what is it that our clients are asking about?

Interest Rates and Impact on Dallas Housing Market

Of course. Interest rates have risen. That's been all over the news as well, but at the same time, those two and 3%, that percent interest rates that we were seeing over the last couple of years were absolutely crazy people. We're probably never gonna see that at least, Probably in my lifetime, but anyway, you never know, but that is just something that has been so unheard of.

Housing Market Forecast from Fannie Mae

And that was a huge bonus for the people that could get into it. But when we're looking at the home price appreciation over the last year or so, where, double digits, 10, 15, 20%. Home price appreciation in some of these homes, they're still predicting that's not that we're, our homes are still going to appreciate, but it's going to start leveling off and it's gonna be a lot more stable in the more of the typical four to 5% price appreciation. So of course, they're still saying that we're going to get a little bit more, maybe in the nine, 9% interest rate over throughout the rest of 2022, but just something to be aware of and how the sky's not falling. The world's not coming to an end just because our interest rates have risen a little bit, we're seeing more homes coming on the market. Because we have seen this, these rise in interest rates over the last month or so.  Some people seem to think that they should be all freaked out about it. These interest rates that we're seeing are still relatively low. The only thing that we are starting to see is that. The number of buyers that have been out there. There haven't been any homes. First of all, for these people to buy. And when homes have been coming on the market over the last year, People were going absolutely bananas, every time a home came on the market, people were seeing 5, 10, 20 offers.

So many viewings people standing outside, waiting for their turn to run through the house really quick to hopefully be able to get. A home under contract for their clients. And now we are starting to steadily see more homes coming on the market where all these buyers who have been so afraid of buying because they couldn't come out of pocket 50 or a hundred thousand dollars over asking. Not all the time, sometimes it was only 20 or 30, but still when you. When you're, when you might need to be expected to come in with that much cash over and above asking a lot of these buyers were absolutely scared to go about it. They just could not compete in this market. So now that we're starting to see things level off a little bit, obviously it's being able to get a lot more buyers back out into the market now, buyer's ready to purchase a new home and actually get in and stop renting finally. And even if you're relocating here to the Dallas, Texas area, maybe you can actually have your pick of five homes that you can compete over as well, instead of just seeing the one that you had to hurry and go jump on and do all of all you could and write 10, 12 offers just to hopefully land that one contract. We are definitely seeing things stabilized, but not only that,  the number of homes that are finally coming on the market, people are still pricing them so high, not only because of that, people are still thinking that they can get top dollar for their home. That is obviously when the home has been on the market for a few days, and they're not having. 10 offers to come in, people are panicking and they're going back to their agent and the agent is starting to, give them the truth about what it is really out there and these homes are starting to be priced a lot more in line with the current market. So people, so we're seeing price reductions. It seems every single day, I am getting notifications from, agents knowing that I have set. My client is up on a search and they're like, please come show our house. Or they know that I've gone out there and shown these properties to some of my clients.

Buying Power of Home Buyers Decreasing

And they're thinking, hurry, make an offer. What do we need to do to make it happen? So we are seeing price reductions, which is making it, I'm working with a couple of different clients right now and one in particular, because of the way the interest rates were going, obviously they had to adjust their buying power. They realized they couldn't, they didn't really wanna go as high as $550,000 anymore and they felt a lot more comfortable around the $500,000 range. There was a home for $560,000 and all of a sudden it was listed for $499,000. That one was a little bit different. I think they had gone in and completely overpriced it and when it didn't sell within five days, the seller completely panicked and just did a huge price reduction in order to get that home. Moving as quickly as possible and maybe even a couple of offers. So we are definitely seeing so many home price reductions. People are, getting out there and, because of the way the market was, and they know people were selling their homes in a matter of minutes with so many offers.

Days on Market Rising

If people aren't selling their homes in two days above ask, these sellers are starting to panic and it doesn't mean that your house isn't going to sell. I am a firm believer that you need to stage your house properly. You need to make sure it gets cleaned. If you really want to get out there and get top dollar for your home, but even Going out and showing a couple of our clients, in particular, they weren't quite ready to buy for a couple of weekends, but they started poking around and looking at what was on the market and out of, the five or six houses that they were interested in one weekend by the next weekend only two or three were still available and that happened the next weekend as well. So it didn't mean the homes weren't going to sell you very rarely see a home on the market for, let's say 28 days unless there's something seriously wrong with it, super overpriced, or maybe it just had a lot of. Things that needed to be fixed in it, but we are seeing homes that are lasting, even 7, 12, 14 days. The benefit of that for people moving here is that they're not having to come out with these crazy terms. They're not having to pay the title policy. They're not having to give away everything and not being able to negotiate repairs. We just got a client under contract a couple of weeks ago, we were able to negotiate seller concessions right from the beginning because the home had been on the market for 12 days. We knew a couple of small issues that the seller hadn't wanted to bother with. And when we came in, we said, being on the market for 12 days, we knew what a couple of problems were and we actually got seller concessions and the seller to pay the title policy right up front from the get-go, and actually get it under contract.  That was a huge sigh of relief for my clients because the clients knew that, you know what, they didn't have to spend that extra cash out of pocket. And the cash would just be sitting there waiting for them to make those, few, little repairs as soon as they closed on the house. And they didn't have to worry about the seller Not doing it to their standards or, what the buyers were truly looking for in purchasing their home.

So the sooner that we were able to figure that out and get them under contract and all the homes had only been on the market for 12 days and the sellers really wanted to sell them. So there are these great properties. They may not have huge things wrong with them, but working with the right agent and being able to negotiate these terms for you and realize that there are some things that we can do to wiggle around our offers in this market is a huge advantage when you know, moving to any city for that matter, but here in Dallas, that's what we like to do. We like to work for our clients. We like to find the best possible scenario and it doesn't mean you can't go in and find the absolute perfect home that has been completely and totally renovated with the most beautiful pool and not a thing wrong with it and not is able to get it under contract for a very reasonable price.  For another client that we helped recently, we actually went under contract writing our first offer and one of the cutest houses, the best remodels I have seen in a really long time. It was in a great area of Dallas. They knew exactly where they wanted to be, they waited and held out for the perfect house that they, in the right location. And I told them, they're actually first-time home buyers. And I told them, that most people don't get into this perfect of a house on their first try. We even had an inspection with almost nothing wrong with it. Just a few things that these buyers knew that they could repair and touch up when they first moved in. But the terms on that offer were so good. Granted. I will admit we were not the first offer because we were being a little bit more conservative on our terms, whatever happened with the person who got their offer accepted, they must have just jumped the gun too much and not and didn't really pay attention to what it was that they were offering. So less than a day later, they called and said, we actually were. Wanting to sell it to your clients. Anyway, we were just hoping that your terms would come up, but we stuck our ground and our clients knew exactly what they wanted. They knew the value of the property, ultimately we got the house,  it was the best day because they did not have to completely come out of pocket.

Granted, we did go a little bit over, but we stood our ground with knowing the value of the home and knowing what the home was worth. So another reason to look out for you is to work with an agent that knows the market and that knows how to navigate these particular offers and situations based on the home and the location and exactly what it is you're looking for.

But one of the best parts of living here in the Dallas area and coming out here to purchase a home is the fact that there is still a lot of growth happening here. Dallas can be built out in every direction. So many businesses are still moving here and therefore tons of building is still happening.

So knowing that you can come out here and that the job markets are great,  everything that Dallas has to offer are great. It just makes it that much easier, knowing that you can get out there and still have an opportunity to buy a great house in a great area. And you don't necessarily have to live so far outside of the city. If you actually really wanna be able to live in the city and, do all the city life things, or not only that, just get into a. Really well-established community with your family. So lots to offer here in the Dallas area because of the amount of growth that is still happening, but also say you really have your heart set on getting into a new build.

We're starting to see all of these builder incentives coming back, whereas before they were hardly offered. Anything, they were doing everything that they could to get you under contract. They were just like you gotta, you gotta take the brick that we have. You have to take the. The tile that's offered and now some of these things are starting to come back because supply has started to build back up. And so not only that houses are coming back on the market maybe they've come on the market because somebody couldn't qualify any longer. So we're seeing some of these spec homes get on the market as well. They're starting to offer these incentives to actually get people to come out and fill up these homes in these communities. Yet another reason why you need to find a great agent. Like us who can help you, know how to work with these builders, know what it is that they're offering so that you can get into the right location, especially if you want a new build. But one of the top things that we are telling our clients all the time is that houses are going to still be flying off the market. If the home is priced right. If it. Has all those upgrades.  If it's in a great location, maybe it's on a golf course. Maybe it has a pool. So something to think about, if you're truly out looking and you want a home like this, you still can't necessarily just sit back and hope that you can make a decision in a week or so, because those homes may be going off the market. A couple of offers. It doesn't mean they're going with five offers or 10 offers, but it could be two or three and you just, and you still need to make sure your terms are favorable, but is it better to have favorable terms and offer 5,000 above asking and pay a few of these? Seller fees and still be able to get the house, whereas before people, think of it when these people were having to come and just, we still can't believe people waving inspections, people offering a hundred thousand dollars above asking.

It doesn't mean that those homes probably haven't been appreciating by now, they might have had to come out of pocket a hundred thousand dollars, some of our clients just don't have that extra kind of cash. Even if they were paying 20% down, can you imagine 20% down plus an additional a hundred thousand dollars if the home didn't appraise because you knew what you wanted? So we're definitely not seeing that obviously nearly as much as we had before homes are still appraising for really good amounts. We have had. Maybe a couple that has come in just barely under the offer price, but it was so much more doable coming in a couple of thousand dollars, extra at closing because it came just shy of the appraisal. Another thing to think of when putting the offer out there in this crazy market. So if you ever have any questions about how we can help you make that move and any of the questions that you may need and what the market's like the locations to be and what exactly you need to do to make an offer.

We have amazing local lenders that we work with here. Sometimes we have seen, just do absolute magic, and be able to find just some amazing terms and great interest rates. And not only that, being able to work in some of these particular areas and being able to offer, these services that truly help to benefit our clients. And that's what we're here for. So reach out, give us a call, shoot us a text, or send us an email. Let us help answer all those questions that you have when making that move here to the Dallas, Texas area.