It’s very difficult to escape the news on the economy, inflation, and front and center lately has been the rising mortgage interest rates. Typically we rely on supply and demand alone to consider what to expect in home prices but inflation has triggered a third and significant factor that is impacting home sales prices.
With the lack of economic certainty, we have recently seen some home buyers “pause” in their house-hunting activities. We have had such strong pent-up buyer demand, I would not expect this “pause” to last long. In fact, savvy buyers are likely going to take advantage of more housing options and the willingness of both home sellers and home builders willingness to negotiate on price and terms. After all, in the previous 2 ½ years, home buyers were at a great disadvantage, submitting multiple offers, paying well above the listed price, and offering terms solely to the seller’s liking. Now, as the market shifts to more normal market conditions, the playing field is fairer to buyers.
Recently, housing market experts have shared their expectations for the rest of this year and all agree that 2022 will still end with home price appreciation averaging 11.3%. Only in 2023 is there 1 expert that expects home price depreciation but only at 3%.
Here in the Dallas/For Worth area, we are fortunate to have incredible home-buying demand while we aren’t seeing the same frenzy we have seen in recent months, home prices are holding up well. I have created home equity reports for my clients to demonstrate how their neighborhood has fared in the 2022 year to date vs. 2021 BUT I have also shown them the most recent data, month over month so they can see if the market shift has significantly reduced home sale prices in their area. In the areas in that I have produced home equity reports, values are up anywhere from 20-36% this year compared to last year. Thus far in late September, reviewing from a month-to-month basis, home sales prices are at worst down 3% but in other areas, sales prices are up 5-6%.
If you would like to track local housing trends, be sure to subscribe to my Youtube channel here as I upload videos every week on our housing market to keep you informed.
