Dallas home bidding wars 2021 (Plano, Richardson: eviction, elementary schools, square footage)

[alison2019]

He does want to sell and we agreed to a price in Dec of 2019.

[mikestrong]

Originally Posted by alison2019

He does want to sell and we agreed to a price in Dec of 2019.

I would be shocked if they will still at old price.

[Katana49]

Originally Posted by alison2019

He does want to sell and we agreed to a price in Dec of 2019.

I hope you've got that in writing, because depending on the home, prices could have risen $50-100k in value since then.

[hanex1]

Does anyone know if the market is still the same even after the interest rates have gone up ?

[Rakin]

Anticipation of higher rates makes the situation worse. People buy before rates go even higher.

We saw that a lot back when rates were climbing to 12-15% in the 1980s/

[mikestrong]

Originally Posted by hanex1

Does anyone know if the market is still the same even after the interest rates have gone up ?

They are still very low in the historical context.

[36183]

Originally Posted by hanex1

Does anyone know if the market is still the same even after the interest rates have gone up ?

Based on the ratio of number of units active vs number of units pending/contingent, for existing homes in realtor.com, this week is slight better in North Dallas suburb, but overall in DFW metro area it is unchanged. I believe the rate has to have an effect but just not that soon.

[hanex1]

Originally Posted by Rakin

Anticipation of higher rates makes the situation worse. People buy before rates go even higher.

We saw that a lot back when rates were climbing to 12-15% in the 1980s/

Makes sense, do you anticipate this going on until Summer

Originally Posted by mikestrong

They are still very low in the historical context.

Agreed, but the last two-three weeks was quite a steep increase.

Originally Posted by 36183

Based on the ratio of number of units active vs number of units pending/contingent, for existing homes in realtor.com, this week is slight better in North Dallas suburb, but overall in DFW metro area it is unchanged. I believe the rate has to have an effect but just not that soon.

Did you mean Dallas proper or any particular suburb. How is Frisco/Prosper/Mckinney doing in the same time frame ?

[LocalPlanner]

The increase in mortgage rates, which as noted are still very low by historical standards, primarily impacts folks at the "entry level" part of the market. Folks in higher income or equity ranges may have to adjust their acceptable price ranges a bit, but they'll still be in the market, and may also move up their time frame a bit if they believe rates will continue to rise.

The underlying strength of the DFW market comes from: (1) the Millennial population bulge in their 30s (2) despite some negative impacts from COVID, the strength of the metro job market (3) relocations of both people and companies from out of state (4) the desire, post-COVID, for more space due mostly to WFH and (5) continued historically low mortgage rates, even if they continue to tick upward over the next several months. Couple these factors with the limited inventory (both new and existing homes), things should continue to be tight for a good while, though hopefully the "frenzy" aspect will ease off a little.

[hanex1]

Originally Posted by LocalPlanner

The increase in mortgage rates, which as noted are still very low by historical standards, primarily impacts folks at the "entry level" part of the market. Folks in higher income or equity ranges may have to adjust their acceptable price ranges a bit, but they'll still be in the market, and may also move up their time frame a bit if they believe rates will continue to rise.

The underlying strength of the DFW market comes from: (1) the Millennial population bulge in their 30s (2) despite some negative impacts from COVID, the strength of the metro job market (3) relocations of both people and companies from out of state (4) the desire, post-COVID, for more space due mostly to WFH and (5) continued historically low mortgage rates, even if they continue to tick upward over the next several months. Couple these factors with the limited inventory (both new and existing homes), things should continue to be tight for a good while, though hopefully the "frenzy" aspect will ease off a little.

Thank you, that is detailed and helpful.