The real estate market has continued to grow in DFW. You can’t sit on a plane or eat in a restaurant without overhearing someone talking about moving to Dallas/Fort Worth. One of the things that is so attractive when you engage in conversation is how affordable our housing is and the quality of life we enjoy here in North Texas. I had 5 independent conversations in the past week about this very topic with complete strangers.
We must be aware that home prices are continuing to rise in DFW, and if they start to become unaffordable for families to enjoy the quality of life that we boast, then we will continue to see a housing correction occur. We’re seeing this already happen where first time home buyers are paying $365,000-500,000 or more for their first home. Think back to your first home if you have some life tenure under your belt, what was the price of your first home and have wages risen quickly enough to make the $350,000-500,000 a similar quality of life?
I heard a Realtor the other day lamenting about how flighty first time home buyers are. I thought back to our market 10+ years ago when a first time home buyer could purchase a home in Richardson or Plano for $150,000, now that exact same home is going for $325,000-375,000. This change in affordability makes any buyer a little more timid and quicker to jump in and out of contract. We keep hearing that the stakes are higher.
So, the message to first time home buyers is – if you make an offer, mean it.
The message to Sellers is, understand that you are making more on your home than when you first bought it and be thankful that these new buyers are still willing to pay higher home prices despite their wages rising slower.
For the non-first time home buyer market, we’re seeing the pricing hikes cause homes to now sit on the market longer and price adjustments are becoming necessary. We are also seeing fewer buyers ask the question “why has it been on the market so long?” The strategy we’re seeing work best is to price slightly under market, have buyers clamor for a “deal” and bid the home up to fair market value or even above.
Food for thought if you’re looking at buying or selling anytime soon. We are continuing to watch and study the market so you have the most up to date trends when we are negotiating.
Cheers to a strong selling week,
Seychelle & Team