The Ratio of Supply to DemandThe 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 RatesRates 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.
ConclusionThis 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.