Jennifer the Realtor® explains: are we headed towards a bust after this boom?

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:

• Our average sales price has never been higher. ($359,740)
• Our average price per square foot has never been higher. ($152/SF)
• We’ve hit the second lowest average days on market. (37 days)
• Our months supply has never been lower. (1.5 months)
• Our number of homes for sale has never been lower. (16,439 homes)

​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.