Hello Rockwall! Welcome to the Rockwall Real Estate Market Update. Each month I take the highlights from the news and market data then condense them into a quick update.
I’m Jennifer Shannon. I’m a Realtor with the Patty Turner Group at Keller Williams. Here’s your update for the month now that November’s numbers are in.
Good news for you buyers out there! Mortgage rates remained flat. We’ve stayed under 3% for the average 30-year fixed rate mortgage and currently sit at 2.71% with .7% in fees and points.
These low interest rates are keeping buyers in the market and we have 22% more buyers looking for homes this year than we had this same time last year.
What’s going to happen with real estate in 2021?
Well probably better than consulting my crystal ball is listening to what some smart economists are saying. And what are they saying? First, that housing prices are predicted to increase 8% next year and 5.5% in 2022. Mortgage rates will hover around 3% and go up to 3.25% in 2022. So if you were worried that you might have missed out on these rates, it looks like you'll still be able to take advantage of them next year.
And here’s to hoping the sellers who have been on the fence about selling because of all the uncertainty we’ve had this year, decide to sell and help ease the supply and demand challenge we currently have since rates will continue to be favorable for buyers.
Source: Click Here
That’s a big picture look at the real estate world, but what’s happening in Rockwall?
For this local market data, I use numbers from single-family home sales in Rockwall County. These numbers are based on sales data from November.
The average sales price is at $381,722. That’s a 13% increase from just one year ago.
The number of homes for sale is at 223 homes. We are down 64% in the number of homes available to buy in Rockwall County.
Rockwall County had 192 sales in November, 18% more than last year.
Homes sold 40% faster in November than they did last year, and we averaged 39 days on the market.
Our months of inventory is down more from last month and is now at one. This number tells us that based on current demand, if no new listings came on the market, it would take just one month for all of the current inventory to be purchased.
We listed 176 homes in November which is 11% less than last year. So again, we have more buyers and fewer homes for them to buy.
Our average sales price per square foot is at $140 per square foot, an 8% increase from last year.
Source: Click Here
If what the experts say comes true for 2021, it sounds like I might have the same overall report for the foreseeable future. We have more buyers than homes available for them to purchase.
If you’re in the position where you want to sell or need to sell, now is the time to do it. When we look at data over the last 10 years, the inventory has never been lower. Your competition has never been easier.
If that's you, let's talk. Send me a message or post on this video and I will follow up with you about selling in this market.
That's all for this month. I hope you have a Merry Christmas and I will see you with a recap of 2020 numbers next month!
A question that I’m starting to hear more and more is, “Are we headed towards a bust after this boom?”
It’s no secret that we’re in a crazy real estate market. We have record-breaking numbers when we look at DFW as a whole. Looking at data over the last 10 years, here are the records we’re breaking:
With this information at hand, it’s hard to not question if we’re in a bubble and speculate when it might crash because we all saw what that did in 2006.
Well, there are some stark differences from this market compared to that one. In that market, adjustable rate mortgages stretched many buyers and we had stated income loans that didn’t require documentation. Today our inventory is lower, much lower, builders are underproducing compared to their historical averages, and we have a nation-wide housing shortage. Not to mention we have so much more regulation with lending that risky loans aren’t being showered on buyers like they once were.
So, to answer the question, this all means that our current risk level for a bust is much lower than the last time the market was driven up.
Hopefully that brings you a little peace if you’re in the real estate market at this time. And if you’re thinking of selling, your competition is at a record-low level. I highly encourage you to take advantage of this market that’s in your favor more than it has been in a decade. If that's you, let's talk. Contact me and I will follow up with you about selling in this market.
And if you have a real estate question you want answered, contact me.
Jennifer Shannon is a Texas real estate agent and broker, licensed since 2006.