Market Watch - 5 Jan. 2024

This year’s real estate market start is typical but filled with optimism about possible interest rate decreases. All residential real estate market categories have increased since last week. After a December cyclical slump for the holidays, January normally has a surge of listings.

To have sales, there must be inventory to sell. While a balanced market has about six months of housing inventory, most local cities have less than three months. A few cities have less than two months of inventory available. These are strong seller markets.

Meanwhile, the lease market remains strong with New Listings, Pending and Closed properties all increasing. While it has consistently and significantly grown in volume since 2021, the lease market hasn’t been inverted for more than one week since 3 June 2022. Lease homes are available. Property owners have cash flow.

Each 1% change in an interest rate equals about a 10% change in buying power for conventional loans. If the market tightens in the spring with few houses and lower interest rates, available lease properties may be liquidated (sold) to capture profits. More Listed and Closed sales will happen while the Lease market may have shortages and higher rental prices.

If you want to purchase a property (for either investment or residence) or lock down a lease, consider this your final warning while the choices of location, condition or price are limited but available. If you are ready to move, call me soon. As a professional photographer and FAA-licensed drone pilot, I can get a photo-ready house or lease property onto the market within 24 hours if needed.

I've Got Your Six!

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

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