Tuesday, October 6, 2020 / by Breanna Thornton
1) Housing Market Recovery
Many parts of the economy took a toll with the coronavirus. This was fully expected for real estate as well. And while the housing market did struggle for a while, the recovery has been monumental. Let’s take a look at just the DFW area. In the month of August alone, Collin County recorded 1855 closings. Denton County had 1761, and Dallas County had 2411.
The use of technology has been an instrumental piece of helping this industry power through. We have seen appointments happening virtually, homes being sold over the Internet, and many agents working with clients in creative ways.
This graphic demonstrates the activity in the market since February. The baseline beginning February 1st begins at 100. We can see there was a serious decline in March and April, however the market in DFW is quickly coming back and should surpass previous levels. (Graphic from Realtor.com)
2) Record-Breaking Mortgage Rates
The mortgage rates being recorded throughout the country right now are a huge attraction for buyers. The highest rate of a 30 year mortgage was 18.63% in the early 1980’s. Now, records are being broken with a rate of 3.03%.
With this incredible opportunity to save money on monthly payments, 2020 is becoming more and more promising.
3) Continued Home Price Appreciation
While low mortgage rates are helpful to home buyers, home appreciation in the market definitely favors sellers. With not as many people selling their homes, demand is high. Buyers are willing to pay more for a new home, which allows sellers to pocket more from the sale.
To be more specific to the Dallas area, there were 4256 homes listed in Dallas County in August. While this is a substantial number, the DFW area is one of the fastest growing areas in the nation. Many families are on the move towards Dallas and are willing to pick up on the limited supply of homes.
These homes are selling fast as well. Homes in the DFW area average 39 days on the market, with many selling even quicker than that. Now is definitely the time to sell if you are looking into making that move!
“The pandemic has not stopped the consistent
home price growth we have seen in recent years”
Bill Banfield, Quicken Loans
4) Increasing Affordability
While there are not enough homes for sale to keep prices extremely low, the mortgage rates still provide plenty of opportunities for buyers. Over the course of a 30 year mortgage rate, up to $32,000 can be saved on a home. This extra money gives buyers options!
A buyer could use this money towards a pool during the hot Texas summers, an extra office space for working from home, or upgrading a kitchen. The bottom line is buyers have much more flexibility with homes! Now is the time to consider taking advantage of these opportunities. (Photo from Dallas Business Journal)
Image from marketwatch.com
There is so much to be excited about in the market! The trends are showing promise, and are expected to continue skyrocketing. If you have any questions or need to know how to get started, let us know! We would love to meet you!
Facts from: Keeping Current Matters, Fair Texas Title
Header image from rismedia.com