Recently I listened to a podcast on WFAA (Channel 8 ABC), and it gave me a great way to describe the current DFW and North Texas real estate market! Right now the “Red Hot” North Texas real estate market is driving up prices and tensions!
“We have women swinging umbrellas at other women on sidewalks because they literally are…fighting over who was in line first,” one real estate expert, Todd Tramonte said. Another way he describes the market is, “It is a seller’s market on steroids right now in Texas.” Todd Tramonte is a well-known real estate marketer and broker in North Texas.
Another expert is Anne Lakusta with GO Management Real Estate/Keller Williams Realty whose company made $8 billion in 2020. Anne Lakusta says “it all comes down to simple economics: supply is not nearly keeping up with demand at this point.”
Some cities have inventory on the market only for a few days! Multiple offers on homes, sometimes 80 plus. Some sellers are experiencing upwards of 100 showings, this is becoming the norm!
So, what else is driving the housing frenzy?
“Lots of people want those houses and there’s not enough for them to have,” Tramonte said. “The one extra factor I’ll throw on right now is that borrowing money right now is borderline free.”
That’s one reason Lakusta is also keeping an eye on affordability, which is becoming a huge concern in the industry. The entry point price to get into a house in the first place has jumped, sometimes dramatically, making it harder for younger folks and first-time buyers to get in to their first homes.
With interest rates already at historic lows, there isn’t much wiggle room with them. So Lakusta wondered if the country is heading towards homes being considered luxury items, which is not conducive to building a middle class. Both of our experts said we are definitely not living in a bubble, because there is no end in sight.
Individuals and corporations continue to move to Texas. Businesses are still providing good quality jobs with decent salaries. Finally, builders aren’t building as fast as people are buying, so there is still plenty of room for that gap to close.
If you’re heading into the market now, Tramonte recommended that you evaluate whether you can truly afford a home. In fact, Tramonte said the current conditions in the housing market make it possible for a home buyer to make some money on a house in between the time they make an offer and actually close. Tramonte said home values in North Texas, for instance, jumped 24% over the last 10 months.
So that would represent a 2.4% increase, on average, every month. If it took you 30 days to close on a house, your home’s value could have jumped 2 to 3%.
To listen to the full conversation on this week’s episode of Y’all-itics, subscribe wherever you get your podcasts: Apple Podcasts | Google Play | Spotify | Stitcher | Amazon Music and check out https://podcasts.apple.com/us/podcast/were-out-of-houses-in-texas/id1486881900?i=1000514961841
Both of these experts, along with some of my past blogs should provide you with the information you need to make informed decisions in this “red hot” North Texas real estate market! But, if you need more expertise and are ready to make the jump, call me!
Beth Brake REALTOR®
Positively changing your life as you move forward to your dreams.