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What Does the Fed’s Recent Rate Hike Mean for the Real Estate Market?

The Fed’s recent rate hike shouldn’t have any significant impact on our market. In fact, it might actually stimulate it.

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On June 14th, the Federal Reserve increased its federal funds interest rate by 0.25%. They’re also widely expected to raise rates once or twice more over the course of 2017. What does this mean for the real estate market?

While any action by the Fed always garners a lot of attention, I believe these increases will not have any significant impact on our market.

First of all, mortgage rates have actually trended lower in the wake of the Fed’s recent announcement. The 30-year mortgage rate recently hit 3.9%, the lowest level in 2017. In fact, it’s a common pattern for the mortgage rate and the Fed rate to move in opposite directions, and the same thing has happened the last two times the Fed raised rates.

Second, the economy continues to do well. The Fed decided to increase its rate because unemployment and inflation are low, household spending is picking up, and we’ve seen steady growth for the past nine years. This is good news for the real estate market. As expected, we continue to see strong demand and a corresponding increase in home prices.

These increases will not have any significant impact on our market.
Third, while the Fed’s rate increase is normally meant to cool off the economy, it might actually stimulate it in this case. Because interest rates were so low for such a long period of time, experts believe the recent increases might ease pressure on the financial system and encourage lending.

Case in point: since the Fed started raising its rate in December 2016, total mortgages are up 2.5% year over year.

In conclusion, while any move by the Fed is likely to lead to a lot of hand-wringing, I believe the real estate market will not be affected and will continue on its own healthy course. Nonetheless, it’s clear that right now is a uniquely good moment for everyone in the real estate market. Today’s low mortgage rates are good for homebuyers because they make homes more affordable.

If you have any questions about our market or you’re thinking of buying or selling a home, give me a call or send me an email at. I’d love to help.

What’s the Latest Real Estate News in the 76133 Neighborhood?

The latest statistics tell us that a strong seller’s market got even stronger this year in the 76133 zip code. Here’s what that means for buyers and sellers.

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What are the latest developments in residential real estate from the 76133 zip code? The way the numbers from March 2016 compare to March of this year paint an interesting picture.

In March 2016, we had 1.4 months of housing inventory available. In March 2017, we saw that number get slashed in half to 0.7 months. That’s a decrease of 50% and means if no new homes came on the market, it would take approximately just three weeks to sell all existing homes for sale.

Our average days on market decreased 26% from 35 days in March 2016 to 26 days in March 2017. The average sales price increased 26% from $129,000 in March 2016 to $156,500 in March 2017. The average sales price per square foot increased 21% from $73 in March 2016 to $84 in March 2017.

What was already a hot seller’s market got even hotter in 2017.
These numbers tell us that what was already a hot seller’s market got even hotter in 2017. If you’re thinking of selling your home this year, you can expect multiple showings within the first few days and a likely sales price at or above the current asking price. If you’re thinking about buying a home in the 76133 area, you need to move quickly because most homes are selling at or above their list price.

If you have any further questions about our market or you’re thinking about buying or selling a home, give me a call, shoot me a text, or send me an email. I’d be glad to help you.

A Market Update for the TCU Area

The 76109 zip code is a great place to live for many reasons. Here are a few of them, from a real estate perspective.

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Today we’re coming to you from the lovely Overton Park, right across the street from the highly coveted Tanglewood Elementary School. Our family moved here specifically because of the lovely schools, awesome park, and wonderful community.

I’ve been getting some great feedback from my first couple videos, but the question everyone keeps asking is, “What’s going on in my neighborhood?” We’re going to focus on the numbers for the TCU area, or the 76109 zip code. This area includes neighborhoods such as Tanglewood, Overton Park, Westcliff, and others. We’re going to compare the numbers from the first quarter of 2017 to the numbers from the first quarter of 2016.

Now let’s dive into the numbers, starting with inventory. In the first quarter of 2016, it took an average of 57 days for a home to sell. Fast forward to this year, and we saw a slight increase to 3.2 months of supply. We’re still firmly in a seller’s market.

Homes are taking a little longer to sell now, too. It took a home an average of 57 days to sell last year, but this year it’s taking an average of 66 days. That is a 16% increase.

Homes are taking longer to sell, but they’re selling for more money.
One positive trend we’re seeing is that the average home price is up by 3%, from $419,105 to $430,598. The average price per square foot is also up from $168 to $179, a 6.5% increase.

What does all this mean for you? Well, it’s an indication that the market is starting to slow down just a bit and we’re hopefully returning to a more healthy and stable market. For the time being, however, homes are still selling fairly quickly and home values are still increasing.

If you have any questions for me or you’re interested in buying or selling a home in the DFW area, give us a call or send us an email. We look forward to hearing from you soon.