Market Watch - 1 Oct. 2021

A "buyer's market" is when there is more than six months of inventory. The last buyer’s market was from July 2010 to July 2012. Currently, there are only a few weeks of inventory in most cities of Collin and Denton counties. If absolutely no houses sold, it would take at least five months to get to a buyer's market. That won't happen anytime soon.

We are currently near historic low interest rates (the cost of borrowing money). This fueled the buying spree that started in July 2020 because people can get "more house for less money." Please read, "Two Reasons Why Waiting a Year to Buy Could Cost You" by Keeping Current Matters.

It is a strong "seller's market" because all the inventory is depleted. However, now is ALSO the best that the market is going to get for buyers. If any buyer is not financially or mentally ready now, that's different. No worries. They should do what's best for them.

The current situation has record low interest rates, record low inventory, record low housing starts, near record high material costs, and skilled worker shortages during record high sales volume (yes, you read that correctly).

We already know about the low Inventory of Homes for Sale. We are near the record low volume from earlier this year. This means all the reasonable reserves have been depleted. That's logical.

The part that isn't logical is Closed Sales. The volume since about March 2021 was higher than it was during any point in the record-breaking years of 2018 and 2019. It dropped off this month mostly because of schools starting (cyclical), low inventory and buyer fatigue rather than anything else.

So, there is a record high volume of homes sold AND a record low inventory.

Consequently, prices won't go down. This is the best they will be for the foreseeable future. Only the past 15 months would be a better time to buy than right now from an appreciation point of view.

Since last week, Properties Sold and Under Contract have increased while New Listings and Pending have decreased. The market remains inverted by 1,020 properties this week alone.

The Lease Market increased New Listings slightly while Pending and Leased properties declined with the start of a new month.

The lease market is still difficult for all but the most qualified applicants without pets. Don’t rent when it’s easier and better to buy. Talk to me.

I’ve Got Your Six!

Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com

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