Interest rates

Interest rates pop and cause spooky Real Estate Market Trends in Dallas Fort Worth

As we near Halloween and kids are putting their final touches on their dinosaur, ballerina, and skeleton costumes, there’s no bones about it, home buyers all over the U.S. are frightened of higher interest rates and it’s starting to cause a lag time in the Dallas Fort Worth, TX DFW Real Estate market. Every Real Estate market trend in major metropolitan areas have a natural ebb and flow, peak and trough, if you will. This one is interesting. This time last year, rates neared around 3.85%. Currently they’re 4.85%. A full one percent, what’s so spooky about that? Well, for every one percent increase in the interest rate, affordability drops by 12% in overall purchase price. So, a $300,000 home buyer suddenly is looking at $265,000 homes in order to keep the same monthly payment. Ouch.

What this means for the Texas micro markets

In Dallas Fort Worth, TX DFW, with the median price point at $197,000, that puts an even bigger crunch on that new home buyer price point that has been plagued with so many investors these days. With multiple offers and cash deals guaranteeing above appraisal, who can compete? Now we’ll force more buyers down into that price point and you can see why we have an odd disparity between homes under $250,000 that we can’t keep on the market through a weekend and homes over $300,000 that seem to collect cob webs. And on those higher end homes, we’re starting to see some frightening closing costs come back into play, as buyers are taking advantage of sellers whose homes sit on the market day after day, week after week, month after month.

There’s a team that can help – Eagle Mountain & Euless Texas

It’s not all doom and gloom though. With a nation-wide marketing presence and a watchful eye on the macro and micro markets, a great Real Estate team can still get you top dollar and aid you in dodging those triple digit days on the market zombies. We currently have two pending sales, one in Eagle Mountain TX and the other in Euless TX, that we met with the sellers because they had expired with other agents. In one-tenth of the time they were on the market before, and at the same list price as the seller’s last ask, we got them SOLD. No tricks, just treats.

More resources to offset swinging interest rates

In addition, with our Zero Plus loan program, we can help buyers buy down those ghoulish interest rates with the money they’re saving on origination, underwriting, and processing fees. And we help sellers provide a solution to paying closing costs by simply offering a lender that doesn’t charge them. Enter our knight in shining armor: Keller Mortgage. Sellers, if interest rates and a light buyer pool have you down this Fall, call professionals that can help you navigate this Real Estate market maze, call The Davis Team at 855-Sell-DFW today. Buyers, whether it’s Mansfield TX or Flower Mound TX homes for sale, we cover the entire metroplex.