Review of 3rd Quarter Data

What a year 2021 has been in the North Texas real estate market.

Our market is constantly changing and bringing with it new challenges and new opportunities. This year the focus has been on inventory and prices. This past spring, record demand drove housing inventory to record lows, which caused property values to soar to record highs. At the close of the third quarter, the data shows significant price increases. Inventory is lower than this time last year, but sales are higher.

The competition among buyers for homes is fierce, and that has driven prices up. In addition, DFW experienced strong growth, and interest rates have remained low.

What are the opportunities for sellers?

The current conditions make for a perfect environment for sellers. The inventory is low and more buyers are competing for the same homes. If you plan to put your home on the market, check out my tips for selling your home in a seller's market. While many sellers can get away with doing less preparation than in previous years, homes that are well-maintained, clean, and updated are seeing the most gains. When all those offers roll in, you must also understand the appraisal gap in order to make the best decision on which offer to select. 

What are the challenges for buyers?

It is going to be challenging to get the home of your dreams. The inventory is low, and there are plenty of buyers out there vying for the same property. I have a great article on how to win the buyer battles. Buyers must understand the appraisal gap when offering higher than the list price. Many buyers question how strong their offer should be. Understanding the market is key to making an offer a contender. Take a look at the above data for Collin County. The final sales price averages 3.7% greater than the list price. That is the county average. I have seen homes in some neighborhoods go as much as 25% (or more) over the list price. Buyers must be sure they know the data on the specific community when deciding on an offer price.

It is still a great time to buy - prices are projected to increase in the coming months as the inventory remains low. Interest rates are also low at this time. If a buyer holds off on purchasing a home, the increase in prices in the coming months will limit the size and location of the home they can afford. Interest rates are also projected to climb, further limiting one's buying power.

Got Questions?

I continuously track our market closely to keep you informed on the latest developments. If you have any questions about this data or would like a closer look at your own city or neighborhood, give me a call.