You were just about to pull the trigger on selling your Dallas home. Maybe you had picked out the realtor you wanted to work with. Maybe you had started shopping around for your next home. Maybe you had already started the packing process. And then the coronavirus pandemic struck and being in quarantine put all those plans on hold. How long should you wait to put your home on the market? Could it be Time to Sell Your Dallas Home? Now maybe the best time.
Understandably, all things COVID related have made selling a home a little different than we were accustomed to before social distancing and quarantine were words we used daily. As a result, home sales and new home construction have seen a decline in recent months that can make a seller nervous about making the decision to put their home on the market. But a report released by Texas A&M University’s Real Estate Center offers some optimistic numbers that can read well for sellers in the Dallas market.
Although we’ve seen a decline in single-family home sales as compared to last year, the market still favors sellers. The supply of homes on the market has decreased as new home construction has taken a hit with a decrease of 30.1% statewide over the past few months. The state has also seen the Months on Inventory index hit a low of 3.2, the lowest it’s been in three and a half years. For homes priced below $300,000 that number falls to just 2.4. A balanced market would have inventory lasting about six months.
While nationwide total housing sales have decreased by 6.6%, the Dallas market has seen only a 4.7% decline. The market for homes under $300,00 actually saw a slight increase in May, adding to the optimism in the real estate market.
As far as pricing is concerned, the Texas Repeat Home Price Index shows a decline on a monthly basis. However, year over year we are still seeing an increase of 3.4%, suggesting that the effects that coronavirus has had on the housing market in Texas has been pretty minimum. Given that quarantine restrictions are beginning to be lifted and home sales are predicted to increase, that number will surely rise as well.
Another factor affecting buyers is the current record low-interest rates we are seeing. According to local Dallas mortgage lender Richard Woodward, the interest rate on a 30-year fixed rate FHA backed loan is in the high 2’s and low 3’s. A buyer today could qualify for an FHA mortgage to purchase a $400,000 home and pay $328.73 less per month than last year based on a 2.75% interest rate versus a 4.25% interest rate. Buyers recognize that a rate this low won’t last forever and are amping up their house-hunting to lock these rates in while they can. As restrictions are lifted, this alone will drive even more buyers into the market, increasing home values and causing the market shortages we see now to increase.
All of this puts the Dallas real estate market in the sellers’ favor. While coronavirus has made for a slightly bumpy past few months, the housing market is still healthy and predicted to continue recovering. If you’ve been holding out on putting your property on the market, it may be time to give your Realtor a call. If you don’t have a Realtor, give Richard Woodward a call at (214) 945-1066 for a referral, he knows and works with the best.
Getting pre-qualified to purchase a home by a local highly respected lender like Richard Woodward can increase your chances of winning your home in a bidding war. Your lender matters in those negotiations. Many Realtors don’t like to accept offers from big bank lenders due to the frequency of delays, lack of communication, and the possibility of last-minute issues. Pre-qualify now and get your Free Home Buyer Packet.
Article compliments Shawna Sanders