Are the Prices TOO DAMN HIGH OR NAH?
In the beginning of 2020, the Dallas-Fort Worth marker was headed to a neutral market. Buyers were able to find homes and sellers were able to sell. No problem, right?
Then COVID hit in March 2020 and shut the country down. This left real estate to be in the unknown territory. If we are being truthful, the absolute best time to have bought a house would have been March-June 2020. I won’t say people were giving away their houses but the unknown was so unknown, you could have gotten things that you cannot think to ask of now.
As far as homes are now, today’s market is reflective of supply and demand. Due to a lot of sellers not listing within the last year, builders not being able to keep up with the demand, and buyers looking to get out of rentals, we were hit with a high demand and a shortage of homes.
If you go back to your college Economics class OR high school Civics class, when demand is high and supply is low, the prices go UP! That is what has happened to the real estate market. Still confused? Let’s use the Jordan brand of shoes for example. They only release so many each round. Soooo many people want them, once they sell out, they sell out. However, resellers know they are the most wanted shoe. They KNOW they can resell and get a higher price because the availability is limited. Welp, that’s the housing market and supply and demand.
Are the prices higher, yes? However, it is relative to the market that you see. Is it favorable? Maybe not to some but the market reacts to what it has.
Prior to 2020, the $250K and below market was vanishing from the DFW market. Now, to find homes in that range, you will have to move out in rural areas of the metroplex. The only places that have a little bit of $250K and below left is the Forney-Heartland-Crandall market and the Princeton area market. In 2021, most homes are starting the $350s. In my honest opinion, today’s $300K is yesterday’s $250K with a low interest rate. You can get a higher priced home but that doesn’t mean the higher priced home will be a larger home.
For potential homebuyers, make a list of what you feel is important to have in the first home, determine howlong you plan to live there, and what amenities do you need in and around the neighborhood. Remember, it is the first home. In order to get bells and whistles, you’ll have to pay for it. If that is not an option, reconfigure what you can spend and realistically do for the first home. Build and grow your equity to make the next home your dream home.
Your first home is typically the first step to getting to the dream home.
If you need to discuss more, book a virtual appointment with us at calendly.com/newaverealty.