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Market Watch

How Covid-19 Has Impacted The U.S Housing Market

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Covid-19 has lead to a whole host of economic issues from a large increase in unemployment, a decrease in consumer confidence and much of the economy has come to a grinding halt. If you were looking to capitalize through some housing purchases I have some bad news for you.

The median list price in the United States is actually rising it’s up around 1.4% year over year. However, home sales are down by 18% though which is also paired with a 7.4% increase in sale price over last year. Essentially this means that homes are being sold for quite a bit more even though far fewer of them are actually being sold.

Why Aren’t Prices Dropping?

Generally speaking home prices are up over the last five years and have been up since the 2008 financial crisis. This has been driven by an increase in demand for homes and relatively low supply. The low supply has been driven by low levels of housing construction and available land to build homes. This is why in many cities across the countries you’re seeing homes that were original a single home on a piece of land be split into two separate homes on the same lot. If you’re curious the easiest way to tell is if your home address has a letter so for example.

123 Example Street A and your neighbor might be 123 Example Street B.

https://public.flourish.studio/visualisation/2096484/?utm_source=showcase&utm_campaign=visualisation/2096484

Now, while usually a sharp decrease in demand leads to a decrease in list price we are also dealing with a sharp decrease in overall housing supply. Many home sellers pulled out of the market due to the uncertainty many of whom who might have been moving due to work might be furloughed. So, this has created an interesting anomaly in the overall housing market where you would expect prices to drop but haven’t. All of which is being driven by lack of participation on both ends as most people have simply pulled out of the market.

Closing Thoughts

Overall, prices haven’t decreased due to not many buyers looking to buy, and many sellers simply pulling their listings. The two have basically cratered identically leading to very little changes in overall prices.

Dallas Fort Worth Markets For September 26th 2019

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The Dallas Fort Worth market is still seeing solid growth and that continues to show this month. There is some good news and bad news mixed in so let’s get into it.

This month mortgage rates are less than ideal they are a not on the higher side but they aren’t ideal if you’re in the market to buy. Another note is these rates look to be staying the rates have remained stable at this point.

The Economy As A Whole

Consumer confidence fell sharply in the month of September. This is due to an escalation in the trade war with China among other factors. This is the largest decrease in consumer confidence in the last 9 months. Furthermore, investments contracted more sharply than previously expected which has renewed concerns of a recession. Jobless claims increased to a three week high however the four-week average fell to its lowest point since July.

The Housing Market

According to the FHFA home prices rose 5% from a year earlier even though in July the gains were the 2nd smaller gains in the last 4 years. Pending home sales were up in August 1.6%, however, a lack of available inventory is being blamed for lack of sales. This could be read as a good sign to sell as well as new home sales which rebounded 7% in august which is close to a 12 year high.

Closing Thoughts

The market is mixed about now while the trade way and fears of a recession are growing home sales still seem to be going strong. Only time will tell how well the market will perform!

Dallas Fort Worth Housing Market For July 2019

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The Dallas Fort Worth market is still seeing solid growth and that continues to show this month. There is some good news and bad news mixed in so let’s get into it.

This month mortgage rates are less than ideal they are a not on the higher side but they aren’t ideal if you’re in the market to buy. Another note is these rates look to be staying the rates have remained stable at this point. So if you’re hoping to get a better rate to wait it out a little bit as the fed is expected to reduce rates.

The Economy As A Whole

Some good news is that the Fed is expected to cut policy rates at next weeks meeting. The current speculation is between the 0.25% and 0.5% rating. Keep in mind the fed doesn’t control mortgage rates directly but a cut in policy rates can lead to mortgage rates being lower overall.

There are still worries of an economic slow down on a global scale but the stock market has remained strong due to strong corporate earnings and the cheap borrowing rates. Whether this will remain though is a bit more difficult to say.

The Housing Market

There was a 1.7% decrease in home sales last month which was to be expected. There is currently a bit of a housing shortage where there aren’t many homes on the market to be sold.

A bit of good news though is that newly constructed single-family homes saw an increase of 4.5%. This is a growing trend and should continue and showup in stats for the end of this month (July).

Closing Thoughts

The market is overall stable there is a mix of good news and bad news once the fed decreases the rate we will have a better idea if the market is going to see more growth or not!

Dallas Fort Worth Housing Market for June 2019

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The Dallas Fort Worth Housing market is seeing some stability this month so far.

Mortgage Rates have managed to stay right in the middle they aren’t too high or low. The good news is the mortgage rates are very stable and look to be continuing on that trend.

The good news though is that the wholesale and consumer inflation data shows that inflation poses no concern to increase rates in the near future. What this means is we can expect rates to stay stable in the near future.

However, on a negative note, this week’s jobs data came in a little weaker than expected and jobless claims rose unexpectedly last week. This can be a sign the economy is losing steam and that growth rates will continue to decrease.

Finally, due to the higher home prices and strong demand in large cities younger homebuyers are now currently driving into smaller cities or suburbs where prices are more affordable. For the home value, this is a good side but it might lead to an increase in the number of days on the market.

Dallas Fort Worth Housing Market for May 2019

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The Dallas Fort Worth Housing market saw some positive growth in the month of April there were some negatives but that’s to be expected.

Mortgage Rates have managed to stay right in the middle they aren’t too high or low. The good news is the mortgage rates are very stable and look to be continuing on that trend.

The economy as a whole though is a bit skittish due to president trump’s increased tariffs on Chinese imports. This trade dispute with China has not directly impacted mortgage rates as of now but the recently imposed tariffs could hamper global economic growth.

Home owners in our area also have shown an interest in improving their front yards. These spaces are now being used as sort of a mingling area where people can socialize with neighbors or passersby.

Finally, due to the higher home prices and strong demand in large cities younger homebuyers are now currently driving into smaller cities or suburbs where prices are more affordable. For the home value, this is a good side but it might lead to an increase in the number of days on the market.

Dallas Fort Worth Housing Market for March 2019

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The Dallas Fort Worth Housing market saw some positive growth in the month of March there were some negatives but that’s to be expected.

Median home sale prices for the month were $286,000 which is up 0.35% from March of 2019. This shows that the market is showing some positive but slow signs of growth. Which is a bit typical for this time of the year.

This month though we only had 3,822 sales for the month which isn’t bad but it’s still down by 11.36% from last year. This can be a sign that the economy is healthy and people aren’t leaving for opportunity elsewhere. However, it could also be a sign the economy is not doing well and people are not moving into larger homes we will need to see as the year continues.

The median number of days on the market was 57 days. This can be a sign people that are actively trying to sell their homes are having an easier time to sell them.

The number of new listings is down this month is up compared to last year by about 3.22% at 6,411 new listings. This can be because of a variety of factors but might tie into the increased values and increased number of days on the market.

The median price per square foot is up 0.75% to $134 which ties into increased property value. Overall in some areas, the market is performing quite well but the decreased sales of homes are something to look into for the coming months which looks to be a continuing trend from back in January.