North Texas is Seeing a Shifting Real Estate Market

You may have heard that the real estate market is shifting as inventory has risen in the last year.  We are seeing listings (even great ones) take longer to sell and have fewer showings.  The fact is inventory is increasing as builders have been able to get more and more homes on the ground.  The inventory numbers especially in $300,000+ markets and some areas, like Prosper, Celina,Fairview/Lucas, and Melissa are hitting numbers representative of a balanced or neutral market (typically 4 to 7 months of inventory levels) while other cities are climbing in that direction.

In a balanced market there are generally an equal number of buyers and sellers in the market and it should be a happy medium where real estate is beneficial for everyone involved.  This means that homes will sit on the market longer unless they are “perfect”.  That means that updates, staging and preparing a home will become much more important and if it’s not perfect the price must be adjusted.  Prices have risen so much, and choices are increasing so buyers will be wanting perfection if they are going to pay “top dollar”.

What does this mean for North Texas real estate?  There is indeed a “slowdown” in the housing market as recent numbers will prove, but there are no signs that this is a “bust” or “recession” so no need to worry we all just need to adjust our expectations accordingly.  Here are the reasons this is currently different than our previous real estate bubble as we compare the real estate market from 2008 compared to 2018:

2018 Dominated By:

• Down Payments (Built-In Equity)
• Principal and Interest Payments (Building Equity)
• Fixed Rates (Payments Don’t Adjust)
• More Cash Transactions
• Apraisers Answer Only to Underwriters on Valuations
• More Stable Buyers – Improving Credit
• Intent to Occupy with Renter or Owner
• Double Escrows Highly Scrutinized and Require Full Disclosure of All Parties, if allowed at all
• Job Growth in Health, Financial and Tech Industries (More Diversified and Less Cyclical)

We will keep you up-to-date on the changing market conditions and always be your “go to” agents.  Tina Marr, the team lead of The Marr Team, has been in the real estate market for over 18 years and has been through several market shifts and has the knowledge to provide our clients in any market.  When the market is shifting, knowledge and experience are even more needed for successful real estate buying and selling.  We will discuss how buyers and sellers will need to adjust expectations in the following weeks, but let us know if you have any other questions about the market you would like us to answer.

Source for the bubble comparison chart: the Cromford Report Daily Real Estate Market Insight.

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