We have had several buyers asking us about Foreclosures in DFW with the market shifting. So, we thought it might be helpful to to give a perspective of our Market over the past 12, 24 and 36 months.

    We currently have 24,121 homes in the real estate market this week. With Pre-Foreclosures and Foreclosures combined, there are 698 homes in Foreclosure in Dallas. This means we have 2.9% of properties in the act of foreclosure. At the peak in the last down market, we had 13% foreclosure/short sale properties. So, the likelihood of you finding and buying a foreclosure is 2.9%. The odds of you finding a home that is fair value and a decent investment, regardless of whether it’s a new build, foreclosure or existing home is much stronger.

    For Buyers:

    Do we have more foreclosures than we did one year ago? Yes. Are banks desperate and needing to take baths to give away properties? No

    If you see the charts below, home prices went up 3.98% over the past 12 months and compared to a year prior, DFW was up 9.15%. So keep in mind that Sellers are more reasonable with their initial list price compared to even one year ago. It may not feel like you are getting “a huge discount on list price”, keep in mind that you are negotiating on a list price that is lower than it would have been last year.

    For Sellers:

    The median home value is up 20.46% over the past 36 months, which is over $60,000 in sales price (Avg $540/month PITI mortgage payment increase). If you look at the average median household income for Dallas, in 2015 it was $74,859 and by the end of 2017 median household income increased by $5,034 per household to $79,893. With the average mortgage payment going up by $6,480 in 36 months and the household income only increasing by $5,034, we are due for a correction. To put it simply, buyers can’t afford the pricing increase. This also doesn’t take into consideration household expenses such as groceries, insurance, gas, etc. increasing.

    The consolation is that we are up 20.46% whereas in the last downturn, we were up maybe 8% in the same 36 months leading to a correction. That’s a huge difference on household price increases. Moreover, if you are looking at buying and selling, the purchase side will adjust as well.

    Moral of the story is, be reasonable, don’t get greedy on your asking price and buyers will reward you with more showings, more demand and better offers than if you push too hard up front.

    Happy Selling.

     

    Testimonials

    On behalf of my entire family I want to thank you for representing us and all your help to sell our property.  I couldn’t have asked for a more responsive, kind, caring approach than the one we received.  Selling a house is a very stressful experience.  You and your team provided the support, guidance, hand holding (when we needed it) and most importantly the results that we needed.  From the initial meeting to the final closing, the entire process was fantastic!  I hope to never have to …
    Cameron & Kimberly Dime