Market Watch - 11 March 2022

Since last week, New Listings and Closed Properties have increased while Active Option Contract (AOC) and Pending decreased. With more houses sold than listed, the market remains inverted for the 30th straight week. It’s essentially been inverted for 66 weeks since the sustained inversion started on 4 Dec. 2020.

Year over year, the volumes are relatively close to 2021 except for AOC. A nearly 25 percent drop in AOC since last year indicates a demand for shorter option periods – ideally zero days for most sellers.

While option fees are negotiable, most sellers want to see offers with significant “skin in the game” option fees. Buyers should expect pushback or to be completely skipped for low option fee offers or long option periods. Anecdotally, I’ve heard requests for option fees to exceed earnest money on multiple offer properties.

Buyers must have a trusted inspector selected and available before they submit an offer. Buyers also must ensure their finances are in order – ideally pre-underwritten to remove the contingency. There simply isn’t time for buyers’ mistakes.

The Lease market had a decrease in New Listings and a significant decrease in Closed Properties (leased) while Pending Properties increased. The lease market realigned this week, but it’s probably tied to cyclical movements because inventory isn’t expected to recover anytime soon.

I’ve Got Your Six!

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

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