Here’s the scoop about the real estate market trends we’ve been tracking.
Being an owner of a team and a 20-year veteran in real estate, I love studying the market. One of my mentors told me that I had to be the hyperlocal economist of choice to really know what’s going on in real estate. Today I want to take a closer look at a few trends I’ve been studying that I think you might find interesting.
First, let’s talk about sales. 2021 is on track to become the fifth- or sixth-best year ever for home sales in the history of the U.S. In DFW, we’re going to surpass last year’s totals by 17% and 2019’s totals by almost 20%.
As you are all probably aware, inventory is a major issue across the entire country. We still only have 1.1 months of inventory in our market, but there is a silver lining. I pulled some numbers and found out that the DFW Metroplex had the second-most construction permits pulled across the country in 2020. We had over 43,000 home permits purchased by builders. Some of these homes might be available now, and more will be available in 2022.
“The average sale price is up 17% from this time last year.”
Another trend we’ve picked up on after talking to other agents that run big teams across the country is that consumer confidence is going up. Sellers are starting to become okay with the idea of selling quickly and taking advantage of their increased equity without a new place to move right away. Some of our clients have even moved into apartments temporarily while they look for their new homes.
Interest rates are still sitting right around 3.1%. We believe that these rates will rise to 3.75% by the end of 2022, which will soften up the market even more. Prices won’t increase as much, and affordability will decrease. The average sale price for DFW is steadily on the rise. Right now, it sits at $494,714. That’s up 17% from last year.
Now let’s talk about some lead metrics I’ve been noticing after discussions with my team members. Mortgage applications are down almost 50%. Not as many buyers are out there in this market, and some of them may be suffering from buyer fatigue.
Our showings are down as well, which is another leading indicator. We carry a lot of listings, and our sign calls and internet inquiries have dropped. Fewer leads are a precursor to a market shift. We were seeing 10+ offers on every listing, but now we’re only seeing three or four. We’re still getting multiple offers, but the number of offers is reduced drastically. Homes are taking longer to sell now than they have in the past year as well.
If you have any questions about the market, the trends, or the business in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.