How COVID-19 Is Impacting the DFW Housing Market
If you’re thinking about selling your home, it's important to have a good understanding of what’s going on in the DFW market.
Knowing the most important data such as the average sales price, number of homes sold, and days on market will better prepare you to sell your home.
You’ll find our team's stats vs the entire market average with info on average sales price, average days on market, and more in our June DFW Market Report
* All stats have been pulled from Broker Metrics & NTREIS. These stats are provided for North East Tarrant County, South Denton County (Flower Mound, Argyle, Coppell, Trophy Club, Roanoke) and Coppell
Average Days on Market
Average Sale-to-List Price
Average Sales Price
Average Price Per Square Foot
Average Days on Market
Months of Supply
(including option, contingent and kick out)
The Tosello Team Sells Houses Faster & For More Money
Taking a side by side look at the average agent in the DFW:
The average agent sells in 33 days, The Tosello Team sells in 13 days!!
The average agent sells their listings for 98.2% of list price, The Tosello Team sells their listings for 99.77%!!
5 Simple Graphs Proving This Is NOT Like the Last Time
With all of the volatility in the stock market and uncertainty about the Coronavirus (COVID-19), some are concerned we may be headed for another housing crash like the one we experienced from 2006-2008. The feeling is understandable. Ali Wolf, Director of Economic Research at the real estate consulting firm Meyers Research, addressed this point in a recent interview:
“With people having PTSD from the last time, they’re still afraid of buying at the wrong time.”
There are many reasons, however, indicating this real estate market is nothing like 2008. Here are five visuals to show the dramatic differences.
1. Mortgage standards are nothing like they were back then.
During the housing bubble, it was difficult NOT to get a mortgage. Today, it is tough to qualify. The Mortgage Bankers’ Association releases a Mortgage Credit Availability Index which is “a summary measure which indicates the availability of mortgage credit at a point in time.” The higher the index, the easier it is to get a mortgage. As shown below, during the housing bubble, the index skyrocketed. Currently, the index shows how getting a mortgage is even more difficult than it was before the bubble.
2. Prices are not soaring out of control.
Below is a graph showing annual house appreciation over the past six years, compared to the six years leading up to the height of the housing bubble. Though price appreciation has been quite strong recently, it is nowhere near the rise in prices that preceded the crash.
There’s a stark difference between these two periods of time. Normal appreciation is 3.6%, so while current appreciation is higher than the historic norm, it’s certainly not accelerating beyond control as it did in the early 2000s.
3. We don’t have a surplus of homes on the market. We have a shortage.
The months’ supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued appreciation. As the next graph shows, there were too many homes for sale in 2007, and that caused prices to tumble. Today, there’s a shortage of inventory which is causing an acceleration in home values.
4. Houses became too expensive to buy.
The affordability formula has three components: the price of the home, the wages earned by the purchaser, and the mortgage rate available at the time. Fourteen years ago, prices were high, wages were low, and mortgage rates were over 6%. Today, prices are still high. Wages, however, have increased and the mortgage rate is about 3.5%. That means the average family pays less of their monthly income toward their mortgage payment than they did back then. Here’s a graph showing that difference:
5. People are equity rich, not tapped out.
In the run-up to the housing bubble, homeowners were using their homes as a personal ATM machine. Many immediately withdrew their equity once it built up, and they learned their lesson in the process. Prices have risen nicely over the last few years, leading to over fifty percent of homes in the country having greater than 50% equity. But owners have not been tapping into it like the last time. Here is a table comparing the equity withdrawal over the last three years compared to 2005, 2006, and 2007. Homeowners have cashed out over $500 billion dollars less than before:
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Read a few of our sellers' stories!
Ivan and Gil-li
The Banat's sold their home in 5 days for full asking price and moved to Florida.
Received 5 offers and sold for $15,000 over their asking price!