Interest rates are at all-time lows, which makes it attractive for people thinking about buying a home.
Local real estate agents sold more than 11,000 single-family homes in October, which is the largest sales total ever for the month. That same demand is coming at a cost for the buyer. Prices are up 12% year-to-year.
Last month’s sales were up 25% from a year ago and the DFW area is seeing that same boom according to Kyle Baugh, realtor with Compass DFW.
“In the last six months, the housing market has been on fire and it all started in May. I think in the last three weeks, it has slowed down a little. That’s typical of this time of the year, seasonally. So that’s a typical change, but we have already seen buyers coming back in the market,” Baugh said.
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He said the low interest rates could mean a shortage in the single-family home inventory.
“I think in DFW the hardest price point is $500,000 and below. Everybody is going towards single-family homes. The market is really driven towards space and square footage and so because of that it has priced out some people,” Baugh said.
Baugh said this is not a time to be discouraged, though. He said it’s important to get with a realtor who knows the market a buyer is looking in because, often, they will know about listings before they are even made public. He also encouraged buyers to look just a little outside of their desired neighborhoods, oftentimes, inventory can be found there.
GP Theriot of Theriot Mortgage Group agreed. He said if anything, these record low interest rates should push buyers to have a plan to ensure they put themselves in the position to get what they are looking for.
“We are under 3% [with interest rates]. What I really want to stress is that buyers might be getting discouraged and putting multiple offers in. What I tell the buyers is stay in there. You have to be prepared and ready. Even if you’re on the fence right now because you don’t know you are going to win the offer, you don’t know unless you go for it," Theriot said.
If buyers are still on the fence about a new purchase or feel like they can’t find what they are looking for, Theriot said refinancing the home you are already in may be a good option, and he is seeing an increase in that.
“This is also a perfect time to refinance. If you were thinking about buying a new home, but you can’t find what you want, maybe stay where you are and refinance what you are in. We have also been doing a lot of renovation loans. People wanting to fix up what they are already in,” Theriot said.