DFW market update Aug-Sept 2016

Many folks like to know what their local real estate market is doing, so here’s a quick update for the Dallas/Ft. Worth region. Since we’re in the middle of September, we’re going by August data (although we’re consistently trending similarly in September). In DFW we are still predominantly in a Seller’s market, especially for homes priced below $600k. It’s a Buyer’s market for $600k+ currently, with a much stronger Buyer’s market at $1,000,000 and above.

The Ratio of Supply to Demand

The Ratio of Supply to Demand measures the number of units of supply relative to the number of units closing per month (demand). All other things being equal, the smaller this number the tighter the market. So, a Ratio of Supply to Demand (Sellers to Buyers) of 1-3 is a Seller’s market, 4-5 transitions to a Buyer’s market, and above 5 is a Buyer’s market.
Example of North Texas
Supply<$500k: 15,408 properties     Demand<$500k: 8,778 properties     S/D Ratio: 1.8 to 1
Supply>$500k: 5.244 properties      Demand>$500k: 845 properties       S/D Ratio: 6.2 to 1

Example of Frisco
Supply<$500k: 491 properties        Demand<$500k: 262 properties       S/D Ratio: 1.6 to 1
Supply>$500k: 347 properties        Demand>$500k: 78 properties        S/D Ratio: 4.4 to 1

Mortgage Rates

Rates have stayed low which benefits everyone, and the population growth in DFW continues to make this a strong market. We’re seeing rates commonly around 3.5%, and some below 3% depending upon the amount of cash down and length of borrowing time.

Conclusion

This is still a great time to sell as well as buy a house. Inquire here for market data so that you will know the true value of your property as well as what you can purchase your dream home or investment for right now if you’re in the market.
  If you would like for The Tomlin Team to give you a more specific update on the market you live in, or provide a detailed market analysis for your home, feel free to contact us. the-tomlin-team-group-picture-2

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