If you have been searching online for a home you may be wondering why there are so few options. After all, you may think that with rising interest rates, buyer demand would be low. However, buyer demand today still outpaces the housing inventory currently available. You may think that waiting will bring many more housing options in the future, but you will be surprised to find that low housing inventory in Dallas will be with us for the foreseeable future. Wonder why?
LACK OF NEW HOMES
For the last 14 years, builders have not been building enough homes to meet the growing housing demand. In fact, they have not been able to keep up with historical demand over the last 52 years. This has led to what many see as almost a permanent undersupply of homes. Thankfully, builders have ramped up, but it's still not enough to make up for the years of deficit.
MORTGAGE LOCK-IN RATE
Most homeowners have mortgages that are much lower than today's mortgage rates, discouraging them from buying another home and selling their current home. This has led to an undersupply of pre-owned homes in addition to newly built homes. With 71% of homeowners sitting on a mortgage rate under 4%, it keeps homeowners from focusing any attention to their changing housing needs.
It almost seems as if all media has focused on creating fear amongst Americans who would otherwise consider buying and selling a home. You may remember some of the headlines forecasting a housing crash or rapidly falling home prices. While it's obvious neither has occurred, this repeated narrative leads people to postpone any housing decisions until they hear good news. The problem is that the media's headlines are intended to shock and raise fear so their articles are read. Good news stories are not what you find on front or leading pages. The quote below perfectly sums up the mindset of most consumers.
"In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt."
Jason Lewris, Co-Founder and Chief Data Officer at Parcl.
What can consumers do? Look to an experienced and trusted real estate professional to help you separate fact from fiction so you have the information to make an informed decision.
Here is what I am sharing with my current and new clients about the low housing impact to them:
For sellers, lower housing inventory = less housing competition when you put your home on the market. I can share the benefits of selling in this housing climate. I can also help you stay up to date on the latest homes available for sale in your area so you can find your dream home.
For buyers, when there are limited options, I can help you find all available housing options, including new homes, that will meet your future needs and budget. I also have access to off-market properties to broaden your options.
When you are ready to consider the possibilities, give me a call. I will guide you through the latest real estate information in Dallas and your area specifically so you have the confidence to make the right decisions about your next real estate move.