Dallas-Fort Worth Real Estate Update December 6, 2019

Each week we condense market data and highlights from the news into an easily understandable blog post.

It's quick and Incredibly Informative with no fluff.

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​Interest Rates
Mortgage rates are holding steady with no change from last week. They’re currently at 3.68% with .5% in fees and points for a thirty-year fixed-rate mortgage.

Last week Freddie Mac’s economic and housing research group released their housing market forecast. They predict the average 30-year fixed-rate mortgage rate will be 3.8% for the rest of this month.

​Looking beyond, they expect rates to average 3.8% in 2020 and 2021. For home sales, they expect the number of homes sold to increase each year but they predict the growth of prices will slow over the next two years. They’re forecasting prices to increase 2.9% next year and increase only 2.1% in 2021. 

Prepared by the Economic & Housing Research group © 2019 by Freddie Mac.

Mortgage applications
Mortgage applications are down 9.2% from last week. The Mortgage Banker’s Association Vice President of Economic and Industry Forecasting, Joel Kan said, "The purchase market overall looks healthy as we enter the home stretch of 2019. The seasonally adjusted purchase index was at its highest level since July, as a combination of wage gains, slower home-price appreciation, and slightly easing inventory conditions continue to support increased activity."

One last tidbit on mortgages, credit availability increased in November. This means that lending standards are loosening. Investors are becoming more willing to purchase loans with lower credit scores and higher LTV ratios.

DFW Economic News
The Dallas FED released their Economic Indicators report that told us economic expansion has slowed a little and unemployment went up a little, though it’s still near historic lows.
 
The apartment market is strong and is second for demand in the nation behind New York. Occupancy is high, at 95.5% and rents increased this quarter 2.9 percent from last year. If you want a little perspective, rents have increased 65% since 2010.

DFW Real Estate Market News
Here’s a look at the initial numbers for October sales for all properties listed on the MLS.

• Our average sales price was $311,122, an increase of 1.5% from last year.
• Days on market are still on the rise and are up to 54 days before going under contract. That’s an increase of 3.8% from last year.
• The list price to sales price ratio has been on the rise since June and sellers are now having to negotiate an average of 4.8% off their asking price.
• Our months of inventory on the market is at 3.1 months and has been tightening since July of this year.

 
The Takeaway
All indicators keep pointing that the market is going to stay about where it is for the foreseeable future.

If you’re looking to buy or sell real estate in DFW, let’s talk. Contact us on our website or call us at 214-803-4444.