Are you planning to buy or sell homes in the Dallas aea in 2021? Like many other parts of the U.S., the Dallas area has benefited from the recent pandemic regarding home prices and activity. The recent trends are a boon for those looking to sell their Dallas homes but can pose a few challenges for those looking to buy as they will likely be frustrated by low inventory and sky-high prices. No matter which side of the equation you’re on, getting the most information you can on the market is a good way to ensure you make a solid real estate choice.
Listing Prices Are Up
The median listing price for Dallas homes for sale is currently $449,200, up 9% from one year ago today. The increase in prices is essentially a reaction to the increased demand for housing and the willingness of homebuyers to spend a little more on a home they are likely to spend more time in as the pandemic continues.
Inventory is Down
Spurred by the record-low mortgage interest rates and flexibility in living arrangements due to the pandemic and work-from-home trends, buyers have gone on a purchasing spree in the past year that has left the Dallas housing inventory depleted. There is currently only a 1.1 months inventory of single-family homes on the market, and many buyers are having trouble finding a home that fits their needs. This has led some prospective buyers to rent, causing the average rent of an apartment in Dallas to surge more than 7% in the past year. It has also led others to stay in homes they would have otherwise sold, further reducing the number of homes for sale on the market.
Time on the Market is Steady
While some parts of the U.S. are seeing homes fly off the market in less than a week, homes for sale in Dallas are remaining on the market for a median of 45 days, a trend that has not changed since earlier in the summer though it’s slightly down from last year. This could be happening because buyers are looking for other options due to the low inventory, and those homes that are on the market for over a month could have significant problems that keep them from selling, or they are overpriced.What the Trends Mean for Buyers
Though there are currently almost 3,800 homes for sale in the Dallas area ranging in price from $3,500 to $37.5 million, buyers could still have trouble finding a home that suits their needs. To navigate this competitive market, consider the following tips:- Get pre-approved for a mortgage. Put your best foot forward when making an offer by handing the seller your letter of pre-approval. This shows you’re serious about buying the home and that the deal is unlikely to fall through due to financing issues.
- Make sure you learn about listings early. Increase your chances of snagging your dream home by learning about it as soon as it hits the market (or sooner). Work with a well-connected realtor who can alert you when homes will soon be listed or when they’ll be pocket listed and not advertised to the general public.
- Be flexible. You likely have a vision in your head when it comes to your ideal home, but you may not get everything you want when inventory is this low. That’s why it’s a good idea for buyers to understand their “needs” (such as a home in a certain school district or the number of bedrooms) and “wants” (like a pool or luxury master bath suite.) This will help your realtor narrow down options and keep your expectations realistic.
- Make a clean offer. Come out of the gates strong and beat out your competition by making an offer that’s at or above listing price and that drops common contingencies based on financing, appraisal, or the results of an inspection.
What the Trends Mean for Sellers
The outlook is more positive for those selling Dallas homes, but that doesn’t mean sellers can get lazy when it comes to their pre-listing checklist. Here are some tips to help them maximize the value of their home in a competitive market.- Price your home competitively. Even though inventory is down, you still need to price your home right to attract potential buyers and encourage offers. The best way to price your home fairly is to work with a realtor who can perform a comparative market analysis that looks at what similar homes in your area have recently sold for.
- Stage it. Having your home professionally staged can increase how much it sells for while reducing its time on the market. If you don’t want to have a pro stager come into your home, you can still experience some of the benefits by staging it yourself, or you can appeal to those who view it online by having it virtually staged.
- Get professional images and video taken. Many of those viewing your home will first see it online, which is why pro images and video are vital. Your images can be used in the listing and both images and video or a crucial component to your strategic online marketing campaign.
- Be prepared to move. Hot homes in Dallas can sell for 4% over listing price and go pending in 12 days or less. If your home sells quickly, you need to have a moving plan—whether that’s to a new home in Dallas you’ve purchased or into a rental to buy you some time while you look for suitable houses.