What’s happening in our local market? And how have national economic developments scale played a role in that? Let’s discuss.
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Today I’m here to quickly update you on the current state of our Dallas-Fort Worth market.
Before we talk local market numbers, I’d like to go over a few relevant points about our economy at the national level. This past July, U.S. economic expansion dating back to June 2009 hit its longest streak in our nation’s history, surpassing the previous all-time mark that lasted from 1991 to 2001. And while our economy should hold up well through the remainder of 2019, the prevailing sentiment among economists is that a recession looms ahead.
During this 120-month record stretch, we saw our gross domestic product (GDP) increase by 2.3% year over year—a slight dropoff from the 1990s at 3.6%. What’s more, our national unemployment rate has dropped dramatically: In 2009, it reached a whopping 10%, but has since fallen to 3.7%.
Even so, a lot of consumers continue to struggle financially. On one hand, low mortgage interest rates have helped to offset housing affordability, but on the other, rising home prices are outpacing median household income growth. To further drive economic prosperity, the Federal Reserve recently reduced the benchmark interest rate to 2.25%—something the central bank hasn’t done in over a decade.
This is a lot of information to take in, and it begs the question: What does it all mean for our local housing market? Let’s pore over the numbers:
In July 2019, the number of new listings in North Texas was up 2.5% compared to the same month last year, reaching just over 15,000. Meanwhile, pending sales have dropped under 10,000 units—about a 6% decrease.
This is a recipe for inventory growth, and in our market, we’ve seen a 4.8% supply increase year over year. Right now, 43,000 units are listed on the market. At the same time, the median price point for the Dallas-Fort Worth market is up 2.9% at $271,000. In keeping with our higher inventory, the average home is spending 21 days on the market—a sharp increase of 21%. And our months’ worth of inventory has by increased 9.1% from last year.
Looking at the big picture, interest rates are considerably lower than they’ve been the last two years, but supply is higher than it’s been in that same time frame. We’re beginning to see signs of stability as our market balances out. All in all, it’s a great time to sell your current home and get into your new home. We may not have another moment like this for years to come, so take advantage of it!
If you have any questions about today’s market or you’d like more information about how our team can you help you buy, sell, or invest in real estate, please reach out to us. We look forward to serving you!
Before we talk local market numbers, I’d like to go over a few relevant points about our economy at the national level. This past July, U.S. economic expansion dating back to June 2009 hit its longest streak in our nation’s history, surpassing the previous all-time mark that lasted from 1991 to 2001. And while our economy should hold up well through the remainder of 2019, the prevailing sentiment among economists is that a recession looms ahead.
"We may not have another moment like this for years to come, so take advantage of it!"
Even so, a lot of consumers continue to struggle financially. On one hand, low mortgage interest rates have helped to offset housing affordability, but on the other, rising home prices are outpacing median household income growth. To further drive economic prosperity, the Federal Reserve recently reduced the benchmark interest rate to 2.25%—something the central bank hasn’t done in over a decade.
This is a lot of information to take in, and it begs the question: What does it all mean for our local housing market? Let’s pore over the numbers:
In July 2019, the number of new listings in North Texas was up 2.5% compared to the same month last year, reaching just over 15,000. Meanwhile, pending sales have dropped under 10,000 units—about a 6% decrease.
This is a recipe for inventory growth, and in our market, we’ve seen a 4.8% supply increase year over year. Right now, 43,000 units are listed on the market. At the same time, the median price point for the Dallas-Fort Worth market is up 2.9% at $271,000. In keeping with our higher inventory, the average home is spending 21 days on the market—a sharp increase of 21%. And our months’ worth of inventory has by increased 9.1% from last year.
Looking at the big picture, interest rates are considerably lower than they’ve been the last two years, but supply is higher than it’s been in that same time frame. We’re beginning to see signs of stability as our market balances out. All in all, it’s a great time to sell your current home and get into your new home. We may not have another moment like this for years to come, so take advantage of it!
If you have any questions about today’s market or you’d like more information about how our team can you help you buy, sell, or invest in real estate, please reach out to us. We look forward to serving you!
