North Texas Realtor Shares How to Navigate a Cooling Housing Market on the Heels of
A DFW realtor said buyers are more cautious, fearing they may not be able to afford to buy.
The average 30-year mortgage rate has already surpassed 7% for the first time in two decades, according to mortgage giant Freddie Mac.
Michele Wood and her husband are ready to retire back home in Arkansas if they could just sell their home in Denton.
“I was wishing we had done this in August because our house probably would’ve been sold by then,” said Wood.
Their three-bedroom, two-bath home nestled on White Dove Lane has been on the market for 27 days.
There have been some interested buyers, including two competing cash offers that came in under asking, but still no done deal.
“Yes, it has surprised me a little bit, but the right buyer is out there,” said realtor Joanne Condi, of Remax DFW Associates in Frisco.
Condi said North Texas’ red-hot housing market is cooling after a strong summer with low-interest rates and competition pushing up prices.
“In places like Coppell, if I held an open house there, I’d have 30 couples lined up,” said Condi.
These days, only a handful of prospective buyers show up for open houses.
Sellers and buyers must now contend with increasing interest rates, fewer showings and a bigger inventory.
“I think we need to get used to interest rates being in the 7-8%,” said Condi.
Condi said inventory in and around Denton is now holding at two months, but doesn’t anticipate North Texas will experience six-month inventory which would signal a balanced housing marking for both sellers and buyers.
Home prices are dropping.
“Krum, which is just north of here, has started to drop their prices,” she said. “Frisco has also continued to drop their prices.”
Some sellers are also turning to concessions once again.
Wood is willing to give their buyer $3,000 that can go to closing costs or if the buyer opts to apply for ‘point buydowns’ to help lower their interest rate.
“It’s a little pricey. It can be $1,000-$2,000 sometimes depending upon the buyer’s credit score and how much they’re putting down,” said Condi of buydowns. “There are some lenders out there that are even doing a two-point buydown and can get it down to the 5%. So, for the first year, you might have it at 5.5%, the second year of your mortgage it may be 6.5% and then the third year is going to go back to what your mortgage locked in.”
Condi advises would-be sellers to seek out an experienced realtor first.
“Don’t go making $50-60,000 improvements before you even call the realtor because you may not get all that money back,” she said.
Pack your patience but be ready, urged Wood.
“Keep your house ready at all times for when somebody says: I would like to come over,” said Wood. “Absolutely! Come right over. I’m ready for ya.”