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March DFW Market Update


March DFW Market Update

Hello March!

Did you know that Dallas and Austin are among the top 3 cities where millennials are flocking to? According to a recent study conducted by SmartAsset, Dallas ranked third with 24,000 people from this generation moving into the city from other states. And they’re not the only ones – with our warm weather (hasn’t it been glorious lately?), absence of state income tax, and strong job market, it’s no wonder people of all age groups are migrating to Texas.

Many are predicting that due to higher mortgage rates, many sellers with current mortgages locked below 5% will sit tight, and buyers will see more concessions from sellers. However, we live in Texas, where the GDP of Texas at $2.02 trillion is larger than the GDP of all of Canada at $1.99 trillion. Texas is also the 5th largest producer of oil at 4.8 million b/d, way ahead of Iraq at 4.1 million b/d (Texas Federal Reserve). Moreover, the Texas economy continues to grow faster than the US economy.

I don’t see any slowdown in prices or a recession coming for us here in the great state of Texas. Don’t obsess over short-term thinking and headline-making news stories. Timing the bottom is always difficult. So, if prices do come down, being able to select the best property at a fair price may still be better than buying what is left over once prices hit bottom and the markets are much more competitive. If you’re currently renting at $4,000 per month, buying a property at $5,000 per month may seem like a lot, but over three years, you’ll have spent $150,000 on rent (assuming 2% annual rent escalations). In those same 3 years, you will have grown your equity in the home and benefited from the mortgage interest and real estate tax deduction.

There’s never a bad time to purchase a home, and if you have any real estate questions, please feel free to let me know. I’m here to help!

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Alison JensenMarch 4, 2023