Spring 2022 Housing Market Update

Here’s an overview of what’s going on in our market and what it means to you.

What’s going on in the Dallas-Fort Worth real estate market? All the time, we hear people say that there simply aren’t any homes available to buy in the area. Today we’ll cover the latest data and discuss what it means for buyers and sellers.

To be clear, it is a competitive market right now. Many individual buyers and businesses are moving into the area; our regulatory environment makes the DFW an attractive place to live. For the last 10 years, we’ve been under-building the number of homes we’d need to keep up with the demand that stems from population growth and the incoming businesses. With all that activity, there just aren’t many homes available.

However, inventory is on the rise. In March 2022, 13,481 homes came on the market, and in April, 14,488 became available. Things are beginning to look optimistic for buyers in search of properties. We’re excited to review the May numbers to see how things have progressed.

Despite how competitive the market is for home buyers, we can still help you get under contract. With the right contingencies and communication with the listing agent, we can help buyers get under contract within the first couple of tries. If you’ve been trying to buy a house and haven’t gotten an offer accepted yet, don’t worry. We’ll create a full plan to guide you through the process of purchasing a home in today’s market.

"Despite recent increases, interest rates are still historically low."

One benefit of buying a home right now is that you’ll be able to lock in a lower payment. Many of our buyers have been renting; rent prices have been escalating year over year. The best way to lock in your payment is to buy a home now and pay a relatively low principal and interest payment each month.

Interest rates have also been on the rise. The Federal Reserve sets an interest rate for the cost of federal money. That tends to predict what the rest of the credit market will charge for interest, including home mortgages, credit cards, consumer loans, etc. In the mortgage market, rates have gone up from the mid-3% range to around 5%. Despite these increases, rates are still historically low. The average rate between 1990 and 2020 was 5.97%, so we’re still well below average. Home affordability might have decreased since last year, but that doesn’t mean we’re at the peak yet.

If you’re a seller, most properties are still getting multiple offers, even though rising rates have decreased buyers’ purchasing power. We can help you create a marketing plan that inspires a frenzy among buyers to get your home. That way, you’re likely to get even more than your asking price when you accept an offer.

If you’re thinking about buying or selling a home this year and would like to talk to us about formulating a game plan, don’t hesitate to give us a call or send us an email. We’d love to help you navigate these complex conditions.