Recapping the first half of the 2018 real estate market
The real estate market in North Texas is undergoing a shift. For a few years, the market has favored sellers. We experienced an influx of corporate headquarters relocations and saw prices climb further. This was great for sellers. It was even a great market for buyers as there was enough inventory for most buyers and mortgage interest rates were extremely low. However, going back to the summer of 2017, we started seeing a shift or a stabilization in the market. Home prices settled, active buyers tapered off, and mortgage interest rates began to creep upwards.
This summer, the saga continues for home sellers. Collin County Association of Realtors has noted that the current inventory of “active” homes on the market is the highest it has seen in years. Pair that with increasing mortgage rates, and you've got yourself a flat market. Homes are taking longer to sell. Buyers are picky and not in any hurry to make an offer. Sellers are frustrated. It is a function of the market and happens regularly.
The great news for our area is that our shifts in the market tend to make smaller corrections than other parts of the country. While we may see a downturn in home sales and home prices, they likely won't go down too far.
Buyers Should Take Action
If you have been sitting on the sidelines, considering purchasing a home, NOW is the time to take action. Interest rates are expected to climb one or two more times this year. Get your interest rate locked-in before that happens. With the overabundance of homes on the market, you can get a great property at a great price. Make sure you work with a seasoned agent that knows how to negotiate on your behalf. It doesn't mean that you can bully the seller – it means that you can get some very favorable terms and a great value.
Sellers Should Take Note
If you need to sell your home, take heart. Homes are selling, however, the ones that are the most successful in this market are the ones that are well-prepared. You need to know what is selling in your neighborhood and what is not. Make sure that you are ready to prepare your home to beat out the competition. You do this with price, preparation, and promotion. A good agent will comb through the data and let you know what it will take to get it done.
A closer look at Twin Creeks in Allen
How will you know what to do to get your home sold? Let's take a look at the latest data for the Twin Creeks neighborhood. (This data was taken from the MLS system on July 31st)
Year-to-date 2018 statistics for Twin Creeks:
- 100 HOMES SOLD
- 33 FAILED (CANCELLED or EXPIRED)
- 53 ACTIVE
- 16 UNDER CONTRACT
Of the 16 homes under contract 9 of them have pools. There is definitely a demand for swimming pools in Twin Creeks. I have read that white kitchens are important to buyers. I did my own research. Of the 25 homes that sold the quickest in Twin Creeks, only 9 had white cabinets. I don't think white cabinets are a “must have” for buyers in this particular neighborhood. I do believe, however, that an updated home is important. Buyers in Twin Creeks expect wood floors, granite or quartz countertops, and stainless steel appliances. Those are the factors that get your home sold quick and what the fastest-selling homes have in common. While there are homes that sell in a matter of days in this neighborhood, the median days on market is 46. That means that over half the homes on the market are taking longer than that to get a contract.
Patience is key. Well, patience, and pricing the home to beat out the competition. Replace your carpet, paint the home in neutral tones, update your appliances, and meet with a pro to get a complete punch list on everything you should do to get your home ready to sell.
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