Market Watch - 22 July 2022

Since last week, New Listings and AOC (Active Option Contract) decreased while Pending and Closed Properties increased. After nearly 18 months of an inverted market, New Listings remain the dominant factor as it should. The market realigned around 13 May 2022 when record high fuel prices were noted nationally and has remained generally aligned since then.

The continued low number of homes in AOC indicates few Option days are purchased for inspections and other due diligence as well as more cash purchases that may not require any inspection. The higher volume of cash purchases is supported by the nearly equal number of Closed and Pending properties. Cash deals most often close faster and sit fewer days in Pending.

While there are several significant issues happening in the housing market, the dominant trend is the amount and severity of price decreases. Rather than just showing the graph, I’ve included my notes about possible causes or effects upon the market.

Price Decreases are an indicator of certainty. If sellers are certain that their houses are priced properly, there is no need to decrease the price. However, if buyers don’t make offers or offer too little, the sellers may consider a price decrease as a result of uncertainty.

Location, condition and price are the three driving issues involved in the sale of real estate. Location can’t be changed. Condition can change some within reasonable demands of the market. If a property isn’t selling, it’s almost always a matter of price. Price is always negotiable.

In the Lease Market, Pending and Closed properties have decreased while New Listings increased. There were about 40 fewer houses leased during this week last year, but about 300 fewer new listings. The big spike last year happened after the first of August. Most schools will start on 10 August this year. Expect another spike in closings.

If someone wants a lease property in their ideal school district or specific attendance zone, they should act now. Meanwhile, it’s never too late to purchase and move to a permanent home.

I’ve Got Your Six!

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

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