Even with the real estate market bubble popping in 2008, we have not seen a housing market quite like the current one we are in. Dallas has been one of the best real estate markets in the past many years, but this new reality is impacting all of us. Including Top Real Estate Agents like me. We are seeing a decline of clients.
So, the main question right now on a lot of home buyers, and home owners minds in Dallas is: “SHOULD I BUY NOW OR SHOULD I WAIT?” Sellers are asking themselves this because they are trying to remember what it was like when they were in the market looking at homes. Trying to put themselves in the shoes of the buyers. A lot of home owners don't know if they should list, but right now appreciation is coming off a high. The bottom has not fallen out. There still is a lot of equity in their home, and depreciation may not come down as substantial as buyers are hoping for. Meaning, that home owners can still price fairly in todays current real estate market, and still make a killing.
Inflation keeps rising, and is starting to show some slight indication that it might start to come down Q2 of 2023. Meaning that we will start to see more balanced market in early 2024. Interest rates will start to come down as well, but home values will still be close to their peak this past summer.
What does all this mean? So, "SHOULD I BUY NOW OR SHOULD I WAIT?" There is no easy answer, but a quick answer is DON’T wait.
This might seem crazy. Why buy now? But once you break it all down in terms of interest rates, home values, and monthly payments then it starts to make some sense. Look at it this way. If you purchase a $500k home in Dallas today, and you finance about $400k, you’ll spend about $13,000 more in interest than you would have a year prior. That can be a hard pill to swallow...however, keep in mind that same home may have appreciated $50,000 to $75,000 in the past 24 months alone.
Over the past year-long period ending in the peak of July 2022, Dallas saw homes appreciate by over 20%. And this won't continue. But experts say that this appreciation will come down only by a projected 5-10% in Dallas. Which is not as drastic as other parts of the country. Dallas is not expected to come down a whopping 20-30% in appreciation.
Right now is a good time to go shopping. Home owners are starting to come down on home prices. Anywhere from $20,000-$50,0000 depending on the listing price of the home, but that will change in the blink of an eye. They can do so because a home they bought for $350,000 five years ago is still worth almost double today. So yes, you’ll spend another $13,000-$16,000 in mortgage interest due to higher rates, but appreciation is expected to continue. This "Pain In The Real Estate Market" is only expected to last about a year. There is a very clear window for home buyers over the next year to find a deal. Plus, remember you can always refinance when the rates drop ????.
Right now is a good time to go home shopping. Inventory is still low, but there are some good deals to negotiate before prices start to go back up in a years time. Do you want to pay a higher interest rate which you can refinance or pay more out of pocket on your down payment? Take advantage of this real estate market while sellers are starting to be less greedy.
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