According to the North Texas Real Estate Information System Summary MLS Report for: May 2018 compared to May 2017, the DFW Metroplex real estate market is escalating at impressive rates. The Median price of a Single Family Residential (SFR) home in the DFW Metroplex is 5% more in May 2018 than it was in May 2017. The SFR in the Metroplex averaged 39 Days on the Market (DOM) for homes that closed in May 2018. That is 3% slower than last year, and there are about 13% more homes on the market this year versus last year.
Condos are holding their value as well. The average price for a condo in the metroplex stayed the same from 2017 to 2018 ($286,196), but the average time on the market is 48 days- up 9% from last year. There are 17% more condos on the market in May 2018 than there were in May 2017.
Some notable changes in the market are in multifamily properties. Multifamily properties were on the market 15 days that reflects a 53% faster time compared to last year with prices up 25% on average compared to last year.
Rentals are also a great story, and congratulations if you purchased a rental property in January of 2016. The median price for rent in January 2016 was $1588 in the NTREIS compared to $1791 in May 2018. In January 2016, it took about 42 days to lease a home as a landlord (42 DOM) compared to about 36 days (36 DOM) in May 2018.
If you are renting, it is still a good time to buy. Yes you could have purchased cheaper if you had not waited, but I believe that the market will continue to pick at its current rate if not pick up at a higher pace. If you own a home that you are wanting to change, now is a good time to do it. I have worked with many people to make this happen. It is tricky, and it requires experienced real estate agent, the right lender, timing and a little luck. And, if you are considering purchasing investment property, just look at the numbers. I am very familiar with investors, the terminology and closing deals that sometimes close quickly and sometimes can take a year or longer.
If you are looking for a good and honest agent, reach out to me. I can help you with your real estate needs here in the Metroplex and am also very familiar with the Austin market as well as the Corpus Christi-Rockport-Copano Bay areas. I live on referrals, so please give my information to your friends who may need an agent in this crazy competitive market.
With interest rates at a crazy low, it is a great time to look at purchasing, refinancing or moving up-downsizing. 30 year fixed rates are 3.79% from what I read today at Noon (Bankrate.com). There is something significant happening today that may affect these ridiculous interest rates.
The Federal Reserve controls the open market operations, the discount rate, and reserve requirements. The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee (FOMC) is responsible for open market operations. Using these three, the Federal Reserve influences the demand for, and supply of, balances that depository institutions hold at Federal Reserve Banks and in this way alters the federal funds rate. The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.
Changes in the federal funds rate trigger a chain of events that affect other short-term interest rates, foreign exchange rates, long-term interest rates, the amount of money and credit, and, ultimately, a range of economic variables, including employment, output, and prices of goods and services.
The FOMC meets eight times per year, one of which is happening today. All indications are that interest rates will increase because of the current meeting. That makes it a valuable time to get approved, find a home, lock in, and enjoy low interest rates for the next 30 years, or until you decide to sell at 12% market increase annually, if numbers continue at the current rate (MetroTex).
Call me soon to discuss the current market, strategies and just to say hi. I look forward to working with you and helping you find your next home or investment.
Home prices in the DFW area are at another record-setting high in April 2017. Median sales prices are up 12% from a year ago, according to MetroTex Association of Realtors (MetroTex), North Texas Real Estate Information Systems (NTREIS)! 12% higher across the metroplex is what was documented in the record books, but were even higher in some neighborhoods according to the Real Estate Center at Texas A&M University and the NTREIS. Not only are the prices soaring, which is not projected to plateau off in most studies out there, real estate agents closed on 5% more homes in April 2017 than they did a year ago in April, 2016.
More than 30,000 North Texas properties changed ownership in the first quarter of this year (MetroTex). There is a tight supply with homes selling in hours sometimes, especially in those under $400,000 (NTREIS). On average, it took less than 40 days to sell a house in the area, slightly less time on the market than last April, and even less in markets under $200,000 and in certain locations. The current market supply consists of a 2.5-month supply of houses listed for sale with real estate agents, which is less than half of a normal market (NTREIS). I have sold two listings this year that were in contract within 24 hours of going onto the market.
So, do you wait for the market to ‘calm down’? That is a question I get a lot. It is never a bad time to buy in my opinion. If you have property, then you have profits/ proceeds out of that at a high market while taking it and applying it to what you want. If you do not currently own, there are some excellent programs out there in attempts to convert lessors into home owners. Those are most likely short lived in my opinion, so, now is an appropriate time to jump in there. With some down payment assistance programs, it is cheaper to buy than to rent.
Further, interest rates continue to remain consistently low and even have dropped when projected they were to rise. Interest rates are so low that it makes sense to finance property now. So, with that in mind, call me or text me with any questions. I will help you get started, introduce you to some great lenders in the area, and we can find your next home or investment.