By Elizabeth Rose | July 23, 2013 | Money
The north Texas housing market is hot…just ask anyone who is actively trying to buy a home.
Low housing inventory levels, homes selling quickly, rising home prices combined with rising mortgage rates is a perfect recipe for the sizzle of this hot summer housing market.
Inventory levels are exceptionally low. We have a shortage of homes for sale. Six months inventory of homes represents a normal environment. Many areas of Dallas and north Texas are reporting less than 30 days inventory while other areas have two or three months inventory to choose from.
Home sales have been increasing.. In Texas they are up 23% from May 2012 to May 2013. With sales increasing and home supply very limited, sellers are able to get full price, above price, and multiple offers. This makes it incredibly challenging for the home buyer.
“The increase of sales we are seeing is a pure function of economics,” said Ted Jones, chief economist for Stewart Title Co. “This is not false hopes.”
Home prices are moving higher. Case-Shiller 20-city index composite showed Dallas area home prices rising at a record pace. Prices of existing homes have been increasing for 14 consecutive months, increasing 7.4% in April over the previous year. This is the largest year-over-year gain Dallas has experienced since Standard & Poor’s Case-Shiller Home Price Index began tracking Dallas housing in 2000.
Mortgage Rates are moving higher. Although mortgage rates have been moving higher, notably since May 1st, most experts expect the housing rebound to continue. Housing affordability remains at historic lows
“Homebuyers have survived rising mortgage rates in the past, often by shifting from fixed rate to adjustable rate loans,” S&P’s David Blitzer said in the report.
“In the short term, long-term mortgage rate levels — while higher than early in the year — shouldn’t hold back housing, said Dr. James Gaines, economist, Real Estate Center, Texas A&M University. “In fact, the fear of rates going up may actually be pushing sales and prices upwards as people try to get into the market before the rates really do go up much.”
Bottom line: Housing is making a comeback. With this comes a higher price for entry. Those who delay will certainly pay more.
If this summer finds you already on the hunt for a home in north Texas, or you are just getting started, or are hitting a dead-end in your search, I stand ready to help you land the right property. Contact me today to see what my network can do for you! We cover Flower Mound and North Texas!