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Housing Market Update | East Dallas | September 2023
If you’re a homeowner in East Dallas or planning to become one, I’m going to be sharing a BS free update on the latest housing market trends from August 2023.
What does BS free mean? It means no exaggerated statements and just the straight goods.
Make sure you stick around to the end of this blog or the video so that you can take advantage of some hidden opportunities whether you’re thinking about buying or selling a home in East Dallas.
Where is East Dallas?
Before we get started, let’s take a minute to specify what areas are considered to be East Dallas.
Basically, this market update includes all single-family homes from Central Expressway to the eastern border of Dallas, and from Northwest Highway down to I-30.
Here’s how it breaks down by zip code. East Dallas includes: 75206, 75204, 75214, 75218, 75228, and a very small portion of 75223.
How Much Supply is in the Market?
From a high level perspective, in August there was a 2.7 month supply of single family homes available for sale in East Dallas, which keeps things pretty firmly in seller’s market territory.
What does that mean? Months of supply tells you how many months it would take for all of the homes currently on the market to sell.
Four to six months of inventory indicates a more balanced market. Less than 4 months means there’s not a lot of inventory available which can drive price up. More than 6 months of supply means there’s lots of properties available for buyers to choose from which can drive price down.
So, how is inventory trending? Well, it’s been trending up since summer began, but that is typical for our market because more people put their homes on the market while more buyers are shopping for new homes, which is usually during the summer.
To be more specific though, August inventory was up from 2.4 months in July.
Inventory was also up year-over-year. In August of 2022, there was only 1.8 months of supply on the market.
What about Sale Prices?
In August, the average sale price for a home in East Dallas was $681,988. Please keep in mind that this was the average across all of the neighborhoods in this broad geographic area.
Sale prices ranged from $180,000 for an 894 square-foot, 3 bedroom, 1 bath home in Casa View, to $2.1 million for a 5400 square foot, newly constructed home in Lakewood-proper.
The average sale price is unchanged from this time last year, and down slightly from $706,578 in July.
List to Sale Price Ratio
In August, the average list to sale price ratio was 96.6 percent.
That simply means that on average, homes were selling for 96.6 percent of their original list price.
That’s a slight drop from 98.8% in July, and 98.4 percent in August of 2022.
How Many Days is a Home on the Market Before it Goes Under Contract?
On average it took 26 days for an East Dallas single family home to sell. That’s pretty much the same as July of this year, and up slightly from August of 2022 when it took 20 days on average to sell an East Dallas home.
I anticipate that home sales will take a little longer as we move into fall, but that’s a typical seasonal change that happens every fall as people shift their focus from home buying and selling, to getting back to school and work.
Interest Rates
Ok if you’re thinking about buying real estate in the near future, then you’re probably curious about mortgage rates. Rates peaked at 8 percent toward the end of August, but they are back down around 7.375 percent for a 30-year conforming loan, without buying points. Jumbo rates are slightly lower at 7.25 percent.
Interest rates move up and down depending on the most recent economic news that gets released and how the market responds to that news. That being said, my contacts in the mortgage industry think that rates will stay in the lower 7 percent range for the near future.
Forecast for September Housing Sales
One of the best indicators of what lies ahead for September is to look at how many home sales are currently pending.
When a home sale has shifted to the “Pending” status, it means that the buyer and seller have met their contractual terms and they’re simply waiting to close.
Right now, there are 85 single family home sales in East Dallas that are pending. This is about half of the number of sales that were pending during the same time last year. But that’s not of great concern to me, because for the majority of this year, total sales have been about half of what they were in 2022.
On average, these homes were on the market about 28 days before going under contract.
I’ll be able to tell you more about these sale prices in next months update. For now, I can tell you that September list prices are nearly 8 percent higher than they were in September of 2022.
Summary
So, to recap…..
- Supply or inventory remains low, which favors home sellers.
- The average sale price was down from July, and unchanged year-over-year.
- On average, an East Dallas home sells for 96.6 percent of the seller’s original asking price.
- In August, it took about 26 days to sell a home in East Dallas. That number will likely go up as we move into fall, like it does every year.
- Fall market activity will depend on the quality of the listings that come to the market and how buyers respond to interest rate stability or fluctuations. My prediction is that we will continue to see pops of activity from week to week as local and out of state buyers continue to search East Dallas for their dream home.
What this means to you
So, as you process this information, it’s really important to understand that macro-level statistics really only scratch the surface of market activity. The bottom line is that whether you’re buying or selling, your situation is unique and a general market update should always be taken with a grain of salt.
If you want an accurate market analysis for your home or you’re thinking of buying and want to know where hidden opportunities may lie, you can either request a free no-obligation market evaluation or book a call with me to have a no-pressure conversation about your options.
I’ll always just give you the straight goods so that you’re informed to make the best decision that’s right for you, based on your personal situation.
If that would be helpful, contact me directly so that we can set up a call. Otherwise feel free to check out my other blogs and I’ll be back next month with an updated, BS free report.
Thanks for tuning in and have a great day.
East Dallas Market Update | August 2023
If you’re a homeowner in East Dallas or planning to become one, you’ll want to read this blog or watch the video update because I’m sharing the latest real estate market trends, in East Dallas, from July 2023.
Make sure you watch or read all the way to the end so that you can take advantage of some hidden opportunities whether you’re thinking about buying or selling.
Where is East Dallas?
Before we get started, let’s take a minute to specify what areas are considered to be East Dallas.
Basically, this market update includes all single-family homes from Central Expressway to the eastern border of Dallas, and from Northwest Highway down to I-30.
Here’s how it breaks down by zip code. East Dallas includes: 75206, 75204, 75214, 75218, 75228, and a very small portion of 75223.
How much inventory did we have in July?
Alright, from a high level perspective, in July there was a 2.4 month supply of homes available for sale in East Dallas, which keeps things pretty firmly in seller’s market territory.
What does that mean? Months of supply tells you how many months it would take for all of the homes currently on the market to sell.
Four to six months of inventory indicates a more balanced market. Less than four months means there’s not a lot of inventory available which can drive prices up. More than six months of supply means there’s lots of properties available for buyers to choose from which can drive prices down.
So, how is inventory trending? Well, it’s been trending up since summer began, but that is typical for our market because more people put their homes on the market while more buyers are shopping for new homes, which is usually during the summer.
To be more specific though, July inventory was up from 2.2 months in June.
Year-over-year, there was little shift in the amount of homes available for buyers to purchase in East Dallas.
What was the average sale price of an East Dallas home in July?
In July, the average sale price for a home in East Dallas was $706,578. Please keep in mind that this is the average across all neighborhoods within this broad geographic area.
Sale prices ranged from $126,000 for a 7500 square foot lot off Parry Street, just north of Fair Park, to $2.45 million for a newly constructed home in Lakewood-proper.
The average sale price is up slightly versus this time last year, but it is down 10 percent versus last month.
Now don’t start thinking that the market is crashing because the average sale price can fluctuate quite a bit from month to month.
This graph shows the trend of sale prices in East Dallas over the last 5 years. As you can see, home owners in East Dallas have experienced a lot of appreciation.
List Price to Sale Price Ratio
In July, the average list to sale price ratio was 96.8 percent. That simply means that on average, homes were selling for 96.8 percent of the seller’s original list or asking price. That’s a slight drop from 97 percent in June, and 99.8 percent in July of 2022, but it is also still very healthy.
When we talk about how much homes are selling for in relation to their original list price, you may be wondering about how often homes sold at their original list price, or higher.
Well, in July, 166 sales were recorded and more than half of these sales were at or above the seller’s original asking price.
How Many Days Did it Take to Sell a Home in July?
On average, it took 27 days for an East Dallas single family home to sell in July. That is pretty much the same as June of this year, and up slightly from July of 2022 when it took 20 days on average to sell an East Dallas home.
I anticipate that home sales will take a little longer as we move into fall, but that’s a typical seasonal change that happens every fall as people shift their focus from home buying and selling, to getting back to school and work.
What About Mortgage Interest Rates?
If you’re thinking about buying real estate in the near future, mortgage rates are hovering in the low-7 percent range for a 30-year, conventional loan, and jumbo rates have been about the same for the past 3 to 4 months.
Interest rates move up and down depending on the most recent economic news that gets released and how the market responds to that news. That being said, my contacts in the mortgage market think that rates will stay in the lower 7 percent range for the near future.
August Forecast
One of the best indicators of what lies ahead for August is to look at how many home sales are pending.
When a home sale has shifted to the “Pending” status, it means that the buyer and seller have met their contractual terms and they’re simply waiting to close.
Right now, there are 75 single family home sales in East Dallas that are pending. This is about half of the number of sales that were pending during the same time last year. That drop is not of great concern to me, because for the majority of this year, total sales have been about half of what they were in 2022.
On average, these homes have been on the market for 30 days before going under contract, which is about 10 days more than August of 2022.
I’ll be able to tell you more about these sale prices in next months update. For now, I can tell you that August list prices are very much inline with the average East Dallas list price for July.
Rundown
- Supply or inventory remains low, which favors home sellers.
- The average sale price was down from June, but still higher year-over-year.
- Multiple offer situations are still happening, but a seller may receive 3 to 5 offers rather than 10 to 20.
- More than half of the homes that are listed, sell at or above the seller’s original asking price.
- In July, it took about 27 days to sell a home in East Dallas. That number will likely go up as we move into fall, like it does every year.
- Fall market activity will depend on the quality of the listings that come to the market and how buyers respond to interest rate stability or fluctuations. My prediction is that we will continue to see pops of activity from week to week as local and out of state buyers continue to search East Dallas for their dream home.
Final Details
As you process this information, it’s really important to understand that macro-level statistics really only scratch the surface of market activity. The bottom line is that whether you’re buying or selling, your situation is unique and a general market update should be taken with a grain of salt.
If you want an accurate market analysis for your home or you’re thinking of buying and want to know where hidden opportunities may lie, you can either request a free no-obligation market evaluation or book a call with me to have a no-pressure conversation about your options.
I’ll always just give you the straight goods so that you’re informed to make the best decision that’s right for you, based on your personal situation.
If that would be helpful, contact me directly so that we can set up a call. Otherwise feel free to check out my other blogs and videos and I’ll be back next month with another update.
Best Hardware Stores in East Dallas
These might be the coolest hardware store in all of East Dallas, and I definitely understand why my husband is always finding a reason to stop in these spots on the weekends.
When you live in the vibrant and bustling community of East Dallas, you quickly learn that this is a place where local businesses thrive and the community spirit is alive!
And sometimes even the most mundane of tasks can turn into a memorable afternoon. Which is why I’m exploring the top three hardware stores that are not only essential for homeowners but also a treasure trove of inspiration for those seeking the perfect Father’s Day gifts.
So, buckle up and get ready for an exhilarating journey through East Dallas!
Best Hardware Store #1
Nestled in the heart of Old Lake Highlands, at Northwest Highway and Easton, Rooster Home and Hardware is a hidden gem that provides customers with small town charm in the midst of Dallas.
They carry an impressive variety of both indoor and outdoor items for your home, and their staff is always friendly and willing to help.
If you’re looking to add farm fresh eggs to your home fridge, then Rooster has all you need to get started and to keep your chickens happy and thriving. They also have a beekeeper on staff and all the supplies you need to start your own bee colon.
One of my favorite aspects of Rooster is their family feel- you can feel their genuine commitment to the area and their customers.
This old-school hardware shop will have you feeling like you’re stepping back in time, in the best way possible.
Unsure of what you need, the knowledgeable staff will happily guide you in the right direction.
From touching up your garden to fixing a leaky faucet, Rooster provides all the necessary supplies to complete your project.
Best Hardware Store #2
Looking for that perfect tool or gadget for dad this Father’s Day? Then head on over to Elliot’s Hardware in Casa Linda off Garland Rd and Buckner.
Here, you won’t just find a store filled with aisles and shelves. Because unlike big-box hardware retailers, Elliot’s caters to home owners.
In the nuts and bolts section, you can buy the limited quantity you need for your project, rather than a quantity that would last you multiple lifetimes. And the Hardware Plus section at the back of the store has every door handle, drawer or cabinet pull, towel rack, and faucet you could ever want!
Need a little guidance? Just ask, and their engaging team of hardware experts will lead you in the right direction.
It’s like having a personal consultant for all your hardware and home improvement needs!
Best Hardware Store #3
Picture this: you’re browsing through power tools while sipping a cold beverage and watching sports. No, you’re not at home.
With big screen TVs all around the store tuned to sporting events, and a bar tucked in the back, Stone’s Ace Hardware in the Casa View neighborhood is not just your average hardware store.
The staff here is incredibly welcoming and helpful, and they go above and beyond to assist you in finding whatever you need.
From nails to paintbrushes, and power tools to grills, they’ve got it all!
And what makes Stone’s truly special is a level of coolness that you won’t find anywhere else.
Stop by the first Saturday of every month for a beer, and live music while you shop for whatever you need for your home or backyard oasis.
So, whether you’re a DIY enthusiast or you don’t want to miss any game that’s on TV, Stone’s Ace Hardware is your go to shop.
There you have it, folks—the top three best hardware stores in East Dallas!
From the unique experience at Stone’s to the charming ambiance of Rooster, and the unparalleled service at Elliot’s, these local businesses have it all.
Not only can you find everything you need for your home projects, but they also serve as the ultimate inspiration for finding that perfect Father’s Day gift!
So, let’s support our community, live the East Dallas spirit, and make these hardware stores your go-to destinations!
5 Best Sunday Brunch Spots in East Dallas
Sunday brunch is a standing appointment on most Dallasite’s social calendars and there are plenty of spots throughout DFW for you to enjoy your brunch cocktails and eggs benny.
But I am an East Dallas girl and have been for about the past 20 years so in this blog and video I’m sharing my Top 5 brunch spots in East Dallas. ⬅️ Click this link to view the video
I’ve saved my top pick for last so be sure to watch or read all the way to the end.
#5 – Hudson House in Lakewood
Hudson House is located at the southeast corner of Abrams and Mockingbird. The brunch menu here is not extensive, but it does have the essentials and they are tasty. Service is always outstanding as well
The cocktails here are legit! I highly recommend their Bellini – it’s frozen with a Grand Mariner melt down. Their martinis are excellent too.
Today we had the lobster benedict and the breakfast sandwich. We nearly licked out plates clean. Yum! 🤤
#4 – The AllGood Cafe
It’s called the AllGood because it’s literally All Good. For me, it’s a Deep Ellum institution. And if you want to feel like you’re in Austin, then the All Good will be the perfect spot for you.
Breakfast is served daily from 8a to 3p. The breakfast menu has a lot of egg dishes, sandwiches, biscuits and gravy, and pancakes of course. I mean, it is breakfast after all.
My personal favorite, the South Austin migas.
The AllGood is also open for lunch and dinner. I highly recommend all of their comfort food.
They’re located at 2934 Main Street which is at the corner of Main and Walton in Deep Ellum.
#3 – Terilli’s
Located on Lower Greenville, Terilli’s is also an East Dallas/Greenville Avenue institution that recently opened again for Sunday brunch.
I highly recommend making a reservation because they always pack a full house.
The new brunch menu includes their signature Italchos – which are basically Italian nachos. They also have salads, egg-focused brunch entrees with 3 types of hollandaise sauce, sandwiches and burgers, and traditional breakfast sides.
Be sure to check out the grapefruit and margarita martinis.
#2 – Lounge Here
If you’re looking for a stellar brunch spot on the east side of White Rock Lake, near the Arboretum, then you simply must check out Lounge Here.
Lounge Here has kickass finish out, a mighty menu and excellent service. The brunch menu has southern staples like biscuits and gravy, shrimp and grits, and chicken fried steak. They also offer a classic breakfast called “Here for You”, Eggs Benedict and a vegetable omelette.
Today I ordered the D’usse French 75 and charcuterie board. I know, it was very French of me. This French 75 is made with D’usse cognac instead of gin and it was delightful!
Lounge Here is located at 9028 Garland Road which is between Lakeland Drive and Old Gate Lane.
Last but not lease, my #1 all-time favorite….
#1 – The Old Monk
The Old Monk is a pub that will celebrate its 25th anniversary this year. If you’ve been in the bar slash restaurant business in Dallas for 25 years, you must be doing something right.
It’s located at 2847 Henderson which is at the corner of Henderson and Pershing.
Brunch is offered Saturday and Sunday.
The crowd is very mixed. There are young singles, young families, multi-generational families….basically, everyone comes to The Old Monk.
Dine in the completely open air patio, the enclosed patio, or inside. Regardless of where you sit, the food and service will be amazing.
I highly recommend ANYTHING on the menu. If you’re a fan of eggs benny, rest assured, the Hollandaise is made fresh daily. And my poached eggs have never been over-cooked!
Happy dining and I’ll see you soon!
Lochwood Market Update – May 2023
In this blog you’ll learn everything you need to know about April 2023 homes sales in Lochwood. Along with which home sales will close in May. And key information about the Lochwood homes that are currently listed for sale.
Which Lochwood home sales closed in April?
In all, there were 5 sales. Three of these homes sold for 100 percent or more of the seller’s original list price.
10510 Swallow is the first new-build to sell in our neighborhood. Construction on this home was completed in 2022 and it has been on and off the market at various prices that range from $1.275M To $1.175M.
The new-build on Lochwood also closed recently. I’ll report that sale next month.
10916 Ridgemeadow is not a new build, but it also sold for over $1M last month. This seller received multiple offers, which pushed the sale price over the $999,990 list price.
What these homes have in common is that they are all quite large. They have a minimum of 4 bedrooms and 3 baths and total square footage ranging from 3400 to 3700.
10847 Colbert Way and 11621 Saxon both sold over the seller’s asking price as well.
The other characteristics that define April sales are fewer days on market and fewer price reductions before these homes went under contract. During the fall and winter, I was reporting really high days on market and lots of price reductions.
What about a year-over-year comparison?
Year-over-year, Lochwood home sales are down 61 percent, but the median sale price per square foot is up 10 percent.
This is the case throughout much of the Dallas/Fort Worth area. Why is it happening?
Because home owners who have locked in interest rates around 3 and 4 percent are not willing to let go of that rate to get into another home.
What I am seeing now is that the people who are selling are doing so because they have to make a move. They are either being relocated for work, or they need to be closer to their children, or they’re retiring in a different area, or they’re getting a divorce. Those are the people who are selling.
The dynamics of low inventory (supply) and high demand from home buyers is driving our values higher.
Which Lochwood homes sales will close in May?
Seven sales have closed so far in May. Four of the sales were at 100 percent or more of the seller’s asking price.
Here are the homes that are under contract and scheduled to close later this month, or in June:
11 homes are currently listed for sale in Lochwood. The days on market for these listings range from 4 to 290!!! Yes, the one that has so many days on market is that one on Waterbridge. Honestly, I feel bad for that seller.
To view the homes that are currently on the market in Lochwood, go to robynflessnerprice.com/lochwood.
The lowdown
Let’s wrap up with some key take-aways:
- Motivated buyers have accepted the reality of higher interest rates. They understand that they can either pay a higher interest rate now, or they wait to buy and pay a higher interest rate and a higher sale price later. They also understand that while they’re waiting, they’re missing out on a lot of appreciation. Our property tax values, most of which are below what a Lochwood home could sell for on the open market, are proof of that continued appreciation.
- Speaking of property taxes, I ran comps for nearly 50 of our neighbors. Many of them had the Homestead Cap applied to their value. I could not find evidence to substantiate lowering the capped value for one homeowner. Not one! Unfortunately, a lot of home owners think that the only way they can impact their property tax liability is to protest their value. But there is another way. Plan on attending city, county and school district meetings in the fall when they set their portion of the property tax rates. You can learn more about that by visiting the Know Your Taxes website. This site is sponsored by Texas Realtors and it’s all about property tax transparency.
- We are still in a seller’s market because inventory remains very low. Well below the amount needed for it to be considered a balanced market. Multiple offers common again. Only this year, a seller may receive 3 or 4 offers as opposed to 15 to 20 that they were getting in 2020 and 2021.
That’s all I have for you today.
Be well,
12 Tips for Winning in a Multiple Offer Situation
Have you heard that competition is fierce among people looking to buy a home in and around Dallas/Fort worth?
Do you want to know what you can do to separate yourself from the competition when a home seller has received multiple offers?
Look no further because in this blog I’m arming you with 12 Tips to Winning in a Multiple Offer Situation
Be sure to watch or read all the way to the end to get the most important tip for competing in a multiple offer situation.
Winning Tip #1
Make sure your agent contacts the seller’s agent to find out what the seller’s actual needs are.
Will price drive their decision?
Do they need a generous leaseback?
Or is there some other hot button that you can push in how your offer is written and presented?
The only way to find out is if your agent actually communicates with the seller’s agent. This may sound pretty obvious, but you’d be surprised how many agents assume they know what sellers want.
Winning Tip #2
Make your highest and best offer as it relates to the sale price of the house.
The reason that I emphasize your highest and best is because you will not know what other buyers have offered. And in turn, the other buyers will not know what your offer is either because, in our market, offers are blind.
Listing agents do not disclose the sale prices or terms of the other offers. You have to bring your a game from the get-go.
Winning Tip #3
Minimize the number of days in the option period.
Why? Because as a buyer you have the unrestricted right to terminate the contract for any reason during the option period.
Show the seller that you mean business by giving yourself enough time to have the home inspected and negotiate repairs and concessions, but do it as quickly as possible.
Winning Tip #4
Since buyers have to pay the seller a fee to have the unrestricted right to terminate during the option period, it makes sense to offer the seller more money for the option period than you would if you were not in a multiple offer situation.
I recommend a minimum of $100 per day, in most situations. And, remember that if you close on the house, the option fee gets credited back to you at closing.
Winning Tip #5
Increase the amount of earnest money that you deposit with the title company.
One percent earnest money is standard in most situations.
If you want to show the seller you’re really serious about buying the house, you can increase that deposit.
In my opinion, this is mostly symbolic because earnest money is refundable if you terminate during the option period or according to some of the other standard terms of our contract. However, some sellers find it appealing.
Winning Tip #6
Use the listing agent or seller’s preferred title company.
Title or escrow is performed by an unbiased third party who helps to facilitate the transaction.
Their rates are regulated by the state, so your costs do not vary much from one provider to the next.
This is a very easy way to appease the listing agent and the seller.
Winning Tip #7
Offer to pay for your own title insurance policy.
Which party pays for the buyer’s title policy is always negotiable.
If you’re not in a multiple offer situation, then it’s customary for the seller to pay for the buyer’s title insurance policy. However, if you are in a multiple offer situation, this is a great way to put more money into the seller’s pocket.
Winning Tip #8
Waive the seller-paid home warranty in your initial offer.
In our market, it is customary for a seller to pay for 1 year of home warranty coverage for a buyer. However, if you waive that fee, you’re putting more money in the seller’s pocket. And, you can always purchase your own home warranty before or after you close on the house.
Winning Tip #9
Attach an appraisal waiver addendum to the contract.
An appraisal waiver gives sellers confidence that they are getting the price that buyer offered for the property whether or not it appraises for the contract price.
Be sure to speak with your agent and lender so that you fully understand the terms of the waiver.
I’m not going to go into more detail here, because how you structure the waiver may be different from one property to the next.
Winning Tip #10
Reduce the number of days that you have to obtain credit approval, or eliminate the need for credit approval completely.
Credit approval is a component of the financing addendum for your contract.
You will need to speak with your lender to determine how to reduce or eliminate this time period. Again, fewer days for financing approval is a way to reduce risk for the seller.
Winning Tip #11
Offer the seller a complimentary leaseback.
A leaseback gives the seller the ability to stay in the home for a pre-determined amount of time, after you close on their property.
Why would a seller need to stay in their home after closing?
Well, if they need the proceeds of this sale to close on their next purchase then they are going to need time to find their next home and close on it.
Also, sometimes sellers want a week or so after closing to have time to pack and organize their move.
Regardless of the reason, if the seller needs a leaseback, and you can accommodate their need, then give them the lease back.
Winning Tip #12
Make sure that you structure your offer so that it meets the seller’s needs, with as few risks as possible.
Depending on the level of competition, you may use one of these tips, all of them, or some combination of the 12.
Communication with the seller’s agent, your agent, and your lender are key to putting yourself in the best position to secure your dream home.
Be well,
7 Secrets to Stress-free Home Buying
Does the thought of navigating the home buying process make you feel stressed or give you anxiety? And is that stress and anxiety keeping you in a home-buying holding pattern? Well, take a deep breath and relax because in this blog I’m sharing my 7 Secrets to Stress-free Home Buying.
As always, you can either read these tips for yourself, or watch the video version by clicking here.
Be sure to watch or read to the end so that you can be a home buyer who walks away from the closing table and says, “That was so easy!”
Stress-free Home Buying Secret #1
Engage a realtor who you trust to help guide you through the home buying process. Working with someone who you trust will immediately help you reduce your stress.
A good agent will listen to your wants and needs and help you make decisions about your purchase based on those wants and needs. They will also refer you to vendors they’ve worked with in the past who have helped their other clients achieve their goals. Ask your agent to explain the home buying process completely and in detail so that you understand what happens in each step, what decisions you’ll need to make along the way, and how much time you’ll have to make them.
Stress-free Home Buying Secret #2
Get your finances in order by speaking with a mortgage lender. Not sure who you should talk to? Ask your agent which lenders they work with and speak with each of them to determine which one you communicate with best.
A good loan officer will take your overall financial goals into consideration when they recommend loan products and programs for your specific needs. They will make recommendations about debts you might want to pay off, or leave alone. You don’t have to be debt-free to buy a home.
They will provide you with an estimate of your closing costs so that you’ll know how much cash you’ll need to bring to the closing table.
They will also know how to “package” your file so that it gets through the underwriting process as quickly and smoothly as possible once you have a home under contract.
Stress-free Home Buying Secret #3
Know your maximum purchase price and the price point where you’re most comfortable buying a home. Oftentimes, they’re not the same. This will help you avoid looking at homes that are priced beyond your comfort level. It will also help you know when to increase your price, if you cannot find a home that you like in your initial price range.
Stress-free Home Buying Secret #4
Start putting together a list of features you want your dream home to have and share it with your agent.
Are you a home chef? Then you’ll probably want a kitchen that’s updated and has lots of storage for all of your gadgets.
Do you want a pool? Then you’d only want to look at homes that already have a pool, or make sure you’d be able to build a pool in the backyard.
Personally, I love walking my dogs. i do it every day, so living in a dog-friendly and walkable neighborhood was very important to me.
Stress-free Home Buying Secret #5
Get familiar with the neighborhoods where you think you want to live. Go to open houses in those neighborhoods and drive through them during daylight and evening hours. Talk to folks who live there and ask them what they like and dislike about the area.
Stress-free Home Buying Secret #6
If you have kids, or you plan on having kids and schools are important to you, then start researching the schools that serve the neighborhoods where you think you want to live. Set an appointment with the principals so that you can take a tour of the school and learn as much as you can about it.
Stress-free Home Buying Secret #7
If you’re a first time home buyer, know that your priorities, wants and needs may change as you look at more properties. It’s totally normal to think you know what you want, and then change your mind when you actually start looking at properties. just make sure you communicate that to your agent so that they can best help you find the one.
The bottomline is to be prepared by doing your research, communicating with your agent and lender, and working with reputable professionals.
Those are the secrets to making your home purchase as stress-free as possible. See how easy that was!
If you really want to be prepared to buy a home in Dallas, then you’ll want to watch my next video: 11 tips for winning in a multiple offer situation
Our market can be extremely competitive because we have high demand for housing and low supply. Prepare yourself by knowing how to set yourself apart from the competition on a multiple offer situation.
Have a great day!
How Much Is Your Home Really Worth?
Recently, I received a call from a woman who has been thinking of selling. She said, “Robyn, I need to hurry up and sell because the housing market is going downhill.”
I replied, “Well, I am working with several buyers right now and they’ve all been in multiple offer situations thus far in 2023, so I’m not sure that’s accurate. From what I’m seeing, prices are holding or increasing. Where are you getting that information?”
She replied, “Redfin says that my value is $600K and when we met in the fall, it was $725K.”
“You do realize that’s based on an algorithm, not actual comparable sales, right? They’re probably pulling in a sale or two that have closed recently, but that aren’t in as good of condition as your property. Have Redfin or Zillow ever actually been inside your home to see its condition?”
“No, and that’s a good point. I never thought of that.”
And that folks, is the problem with relying on online estimates to determine the value of your home. In this blog I’m going to break down why online estimates of value are complete nonsense here in Texas, and how you should go about determining a more accurate market value for your property. You’ll want to read all the way to the end, even if you’re not thinking of selling, because this information can also help you determine whether or not the market value assessment that you receive from the appraisal district is an accurate basis for your property taxes. Afterall, everyone wants to sell for as much as they possibly can, and pay as little tax as possible.
Home Sale Prices Are Not Publicly Disclosed
Sale prices of real property (commercial or residential) are NOT publicly disclosed because Texas is a non disclosure state.
What’s real property? The term “real property” refers to land and improvements on it, like buildings and other structures.
What’s a non disclosure state? Texas is one of about a dozen states in the US where there is no law requiring the sale price of real property to be disclosed to the state or local government, or local appraisal districts. Period. Bottom line.
The only place where home sale prices are disclosed is the local Multiple Listing Service (MLS). The only people who have access to that information are those who pay to have access to it, like local realtors and appraisers the appraisers who evaluate your home when you’re getting a loan or refinancing.
Where Do Online Entities Get Their “Info”?
So where are these online entities getting their information to ascertain the “value” of your property?
Well, I am not privy to their intellectual property or algorithm, but I can tell you that list prices for homes are publicly disclosed. Most realtors push their listing data to consumer websites like Redfin and Zillow and even the websites for our own brokerages. It’s part of how agents market or raise awareness about properties for sale. So a seller’s list price is public information.
In addition to list prices being publicly disclosed, so are mortgage amounts. When a home buyer closes on a property in Texas, and has acquired that property with financing, the mortgage amount is included with a batch of information that’s sent to the county. It’s my guess that these websites are looking at list prices and mortgage amounts to develop their assessment of the sale price.
What’s Left Out of Their Valuation?
Any homes that sold for cash. Obviously there is no mortgage amount if a buyer uses cash to purchase their home.
Second, and probably most importantly, what these websites do not know is the actual condition of your home or any of the homes in your neighborhood, because they’ve never set foot in them.
Why would you rely on someone or some thing, who has never even seen your home, to dictate the market value of it?
Every Day Example
Two homes next door to each other, with the same square footage, bedroom and bathroom count, and built the same year. In the real world, not the online world, these homes can vary in value by hundred of thousands of dollars if one has been completely updated and the other has never been touched.
The websites that consumers are relying on do not differentiate between the two. And that is exactly what happened with the example that I used when I started this blog.
The site that my client was referring to, in order to determine the “market value” for her home was pulling in estimated sale prices from properties that did not even compare to the improvements and updates that she had put into her home.
How To Get an Accurate Value
Contact a realtor who will actually visit your home to observe its condition, and then pull the most recent sales from the multiple listing service that are truly comparable. And, if you work with me to do this, I will actually put together an electronic presentation that shows you the sales that I pulled from the MLS so that you can see all of the details, (photos too) for the most comparable sales.
Want to know the value of your home?
If you have questions about market value of your home, or any of the other content I post online, or send via email, please reach out to me! I am happy to answer your questions as they relate to your specific situation.
Have a great day!
Lochwood Neighborhood Market Update : March 2023
Hello + Happy almost spring! This is your monthly update for home sales in Lochwood. As per usual, I’ve created a video update that you can access by clicking on the YouTube link, or you can scroll down and read the same content for yourself. Your choice! Quick reminder before you move on to the update. You should receive your Assessed Market Value from the Dallas Central Appraisal District in March or April. I am happy to help you determine whether or not their value is accurate. We’ll just need to a quick phone call so that I can get some of the details about your home. On to your monthly update!
It has taken a minute, but home sales in our neighborhood market are finally starting to pick up again! Home sales started to decline in the fall of 2022, much like the rest of Dallas/Fort Worth and the US for that matter because of higher mortgage interest rates. It seems as though home buyers have accepted that they will pay higher interest rates and as a result spring market has come early in DFW. The demand faucet turned on again about mid-January. Home sales are starting to tick up and so are prices. Buyers find themselves competing with one another for the really good properties. The graph below shows the number of homes sales in Lochwood, by month, for 2021, 2022 and 2023.
What Housing Crash?
Buyers are coming back to the market for a few reasons. First, they’ve come to accept that interest rates are not going to drop significantly anytime soon. Also, many are taking advantage of temporary rate buy downs. This is a seller-paid rate buy down that reduces the mortgage interest rate that buyers pay during the first two to three years of their mortgage. I’ll release a blog and video that explains rate buy downs later this month. The other reason that buyers have come back to the purchase market in full force is because our local market didn’t “crash” as they were hoping. The Dallas/Fort Worth housing market has not had a significant loss in value since mortgage rates increased. Smart buyers realize that they can either pay a higher rate now. Or, they can wait to buy and pay a higher rate and higher sale price later. Which would you choose?
The chart below shows the median sale price in Lochwood from February 2020 through February 2023. There was a drop in September 2022, but that was an anomaly because the overall trend line continues to rise.
February Home Sales
There are not a lot of individual sales for me to report this month, but if you want the details of the sales that did close, they are listed below. Two of these sales had a significant number of days on market. The homes on Carissa and Rogue Way were originally listed in 2022, so they had accumulated a lot of days on market. The listing on Ridgemeadow was only on the market for eight days before it went under contract. I actually met the new owners of this home when I was walking one of my dogs this week. They’re a lovely young couple and so very excited to be a part of the Lochwood community.
Lochwood Home Sales YOY
Year-over-year statistics are a little lackluster. Days on market may remain high for a little while as we work our way through some of the homes were listed in the fall and winter, but there are several homes under contract that will close next month, that have very few days on market. Inventory is a little higher, but 1.4 months is still well below what would be considered a “buyer’s market.” What’s most important is that our values are holding steady. Click here to view homes that are currently for sale in Lochwood.
That’s all I have for you this month. Reach out to me directly if you have any questions about the value of your home or the market. I am always here for you!
Lochwood Market Update: January 2023
It’s helpful to be up to speed on real estate market activity whether you own a home in Lochwood, or you’re considering buying a home in Lochwood. In this market update I’ll dig into the home sales that closed in December and listings that are currently pending sale and actively being marketed for sale. Be sure to read all the way to the end for the most important information: key take-aways and a 2023 forecast.
If reading a blog post isn’t your thing, click the YouTube link below and you’ll get all of the same information via video.
Let’s get started!
Looking Back: December Sales
The table below details all of the Lochwood homes that sold in December 2022. In all, there were 2 sales. One of these homes sold for 100 percent or more of the seller’s original list price (far right column). For the purpose of comparison, in December of 2021, there were 12 total sales and 6 of those homes sold for 100 percent or more of the seller’s original list price.
The most “interesting” sales to close last month was at 11815 Meadowspring. This listing raised a lot of eyebrows when it was originally put on the market in mid-July for $1.1M. The house itself is nearly 4,500 square feet, which is quite large and somewhat comparable to newer construction in the neighborhood. However, the finishes in this home were not comparable to new construction. Therefore, it sat on the market until it was re-listed by another agent in October. This agent put it on the market at $750,000. After about 30 days on market, the price was reduced to $650,000, and that’s when it went under contract.
Looking Back: Year-over-Year at a Glance
The next table gives you a snapshot of how the market performed in December of 2022 compared to the same time last year. Once again, overall sale prices for 2022 remained higher than the sale prices of 2021. The number of homes for sale (inventory) was similar. Days on market were up, but 22 days is somewhat “normal” by historic standards. Closed sales and showings dropped off.
It still cost a home buyer twice as much to borrow money for their mortgage, but interest rates did start to drop in November and bounced around in December. Again, read all of the way to the end of this letter for my interest rate forecast.
What’s Happening Right Now? Pending and Active Listings
There is currently one home sale pending in Lochwood: 10556 Evangeline Way. This home was originally purchased in January 2021, remodeled, and put back on the market as a “flip” in August 2022. 135 days on market, and 8 price reductions (totaling $125,000) later, it went under contract. It should close before the end of this month.
Two other homes have sold since the beginning of the year. Both of those homes sold much more quickly and closer to the seller’s original asking price than this property on Evangeline Way.
There are currently 14 homes listed for sale in Lochwood. That’s the same number of homes that were actively marketed for sale in November and December. Prices for these listings range from $359,000 to $1.2M. Ten of these listings have had one or more price reductions.
Click here to view homes that are currently on the market in Lochwood.
Now, when you read about listings having hundreds of thousands of dollars in price reductions (like Evangeline Way) before going under contract, you may start to think that the market is tanking. Let me be clear. The market is not tanking!
You have to weigh the good with the not so good. Many Lochwood listings are still selling very close to the seller’s original list price and with few days on market. Those that are experiencing massive price reductions were priced far too high to begin with.
Key Take-Aways and Forecast
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- Interest rates will continue to bounce around as the Federal Reserve works to bring inflation down. Most economic experts that I follow believe that mortgage interest rates will settle between 5.5 and 6.0 percent by the end of 2023.
- Most of the mortgage professionals that I work with report that home buyers are taking advantage of rate buy down programs. I anticipate that we will likely see buyers continue to ask sellers for a contribution toward their closing costs so that they can buy down their interest rate.
- Mortgage application rates have increased since the first of the year. People don’t apply for mortgages unless they’re preparing to buy a home. This is an excellent indicator of a strong spring market on the horizon.
- If a home hasn’t sold, and the property has been on the market longer than the average or median days on market, then the seller should consider offering funds toward the buyer’s closing costs so that prospective buyers can buy down their interest rate. The reason that this is an effective strategy for sellers is that helping the buyer attain a lower interest rate is actually more cost effective than lowering the list price of the house. I’ll discuss this in greater detail next month.
- 2022 sale prices were significantly higher than 2021. I anticipate that the appraisal district will increase most homeowners’ market value assessment by the full 10 percent in 2023. Ten percent is the maximum amount that your value can increase if you have a homestead exemption on your property.
- Dallas County property tax rates have been set at 2.51 percent. This rate is lower than what Dallas homeowners have paid for the past two years. Yay!!!
- The real estate economists at the National Association of Realtors ranked the top 10 performing markets for 2023 and DFW was ranked third behind Atlanta, Georgia and Raleigh, North Carolina. Yay DFW!
- DFW home values will likely increase by at least 5 percent in 2023.
Thank you for your time today. I am hopeful that you can see that our market is not all doom and gloom because it is not. And, if you put off selling because you thought that the market was slowing down, you may want to re-evaluate. Inventory/supply is still very low and it looks like buyers/demand is turning around.
Please reach out if you have any questions about the local market. I will always respond, and if I do not know the answer, I will find out for you.
