Has the Dallas Market gone Crazy?!
Has the whole DFW Real Estate Market gone Crazy??!!!
It seems like every single house has 47 offers in 24 minutes and are getting 80,000 over list price......
While I exaggerate, it's really not far from the truth. There are so many buyers trying to buy because of low interest rates, but because of a number of factors there just isn't enough inventory to go around. Well what are those factors?
- Extremely low interest rates....In fact they are historically the lowest in U.S. History
- The U.S. Government artificially lowering the rates to offset the Covid-19 Pandemic and keep the economy going.
- The Covid-19 pandemic has caused supply chain issues across the world, which have caused builders to come to a grinding hault on production.
- All of the Millions of people moving from All OVER the U.S. to the GREAT STATE of TEXAS!
- Sellers not wanting to sell due to a lack of inventory....which seems counter productive, but in reality they don't have any place to go....so why sell?
- Texas real estate is still fairly affordable in comparison to many other markets....so what seems crazy expensive to us is in fact pennies to other people.
When you add all of these things up, it makes it a challenge to buy in the DFW marketplace right now. Not going to argue that at all. Yet still the market has no signs of slowing down anytime soon with the influx of people to the metroplex. So how do we handle this and are sellers really asking too much?
Well, for once the "bubble" idea is right out of the window. This is a True supply and demand issue with homes. If you don't have one right now and you're trying to find one you are definitely going to be up for a bit of a fight to get one. There are quite literally 50 buyers to evey 1 listing. Yes those numbers are legitimate. They are fluctuating between 30 to 60 per every 1 home right now, but those are the real stats according to recent surveys. So the question still stands, are sellers nuts for wanting 20,000 to 80,000 to even more over the asking price?
Answer: Nope, if they are willing to pay it, then let the buyer. It's a true market value at that point. So why not get as much money as you can? It's only fair to the person who has the home to ask as much as they can. Remember this seller is now going to go find a place to live and perhaps pay the same amount the buyer on their home paid over the list price themselves.
Now is the second question, is the home worth it? Yup, every penny. Unfortunately, again it's supply and demand. If you don't have it and they do, and you want it....then you're gonna have to pay to get it.
In short, sellers are just doing what the market demands of them. It's not an easy market, but it sure can be a great one for those willing to go find a new home and lock in a ridiculously low interest rate. It can be an awesome opportunity for those who know how to capitalize on it. So don't be afraid to wade into the real estate trenches this spring and summer, you never know if the perfect home is there and that ridiculous rate could make it really affordable even with that insane price tag.