Hello! Times they are a'changing, which is the name of the game for DFW Real Estate. We have multiple factors contributing to the change, in my opinion... Watch this video, then read the additional information I provide on this blog below...
In this blog post, I share: 5 Reasons the Market is Changing
The market is changing in Dallas-Fort Worth, including in areas such as Frisco, Plano, Carrollton, Richardson, Dallas, Prosper, Celina, Arlington, Saginaw, Trophy Club, Southlake, Grapevine (and beyond).
Here's what I, Jenna Ryan, believe to be the 5 Factors contributing to the stabilization of the DFW Real Estate Market:
1. Interest Rate Increase - The current state of the economy and the increase in interest rates has obvious impact on real estate, and we're seeing the direct impact of that increase on our market right now. It's not the end-of-the-world, because the market was actually TOO HOT. Now things are normalizing, and it makes life much better for buying and selling real estate in Big D and surrounding suburbs.
2. Price Hike has Peaked - All good things must come to an end, and it looks like the Great DFW Price Hike of 2022 is finally stabilizing. We had huge jumps in home values, like we've never seen before in 100 years. Now that these prices are at their peak, we are now seeing a stabilization of the prices, which means that bidding wars are less prevalent on over-priced homes.
3. Zillow has Caught Up - When the price-hike in DFW first started, the Zillow algorhythm had not yet caught up, nor had the appraisals. A home was showing on Zillow Zestimate as worth $500K, when people from out of state, moving to the area, were willing to pay $600K or higher. Now, Zillow has bumped all the prices up so that said prices are too high. Now everyone thinks their homes are worth way more than they're worth, regardless of other valuing factors--and they're over-pricing their homes, which leads to more inventory, which leads to market stabilization.
4. More People Are Selling to Cash Out - People have heard about the incredible market and are putting their homes up for sale, trying to cash out, but what that's doing is causing an increase in inventory, which gives buyers more options, and ultimately flattens the market out. The time to sell was a few months ago. Not to say the market is not still good. It is STILL A GREAT TIME TO SELL, but you must be realistic on what your home will bring in, and you need excellent marketing strategies (like a great agent) to get the job done.
5. Real Estate is Cyclical, and It was Getting Gnarly - It's actually good for everyone that the market is stabilizing. We don't need a 2,000 sq ft home in Dallas to sell for $1 Million. That's not good for anyone, because people need affordable housing. Thankfully, the market is stabilizing and not climbing any higher. I'm grateful that things are getting back to normal, and confident that now is a great time to buy or sell, so long as you're realistic in what you want to achieve.
Contact me, Jenna Ryan, to talk about buying or selling in DFW.