Everything has changed in real estate over the past 3 full months. So how have the rising interest rates affected Garland, Texas?
Let's break down what's happening in each price range.
The 55 or so sales took over 23 days to sell (on average). This is more about the age/condition of the properties than the number of buyers willing to purchase in this price range. The average age of these homes was 1963, and the majority of these homes were NOT MOVE-IN READY. So negotiations had to happen in order to find the right price/true value for each of these homes. There is plenty of buyer demand here from investors and regular folks alike. It's a healthy price range, with plenty of low-budget buyers competing for affordable homes here. Sellers can confidently list their home for sale expecting a fair market value within 2-3 weeks on the market.
@ Buyers - The wise move here is to buy an ugly home for a discount and use BANK money to make it look brand new, inside and out. Most buyers don't know that you can include upgrades and renovations into your home loan. Use the market discount to your advantage and use the money you save to get upgrades that are usually only found in new homes. We help you find, design and transform these properties so they fit HOW you do life. It's worth a conversation! Schedule a quick call with me to get the know-how on the least expensive way to live in a custom home.
104 homes sold in around 26 days (on average). This is where the most affordable "move-in ready" homes can be found in the city and the 2nd hottest price range in Garland. The average year built for these sold homes is 1970, with the average size being 1,522 sqft. The prices are low enough to attract buyers from surrounding cities and sellers are getting 97.93% of their original asking price. It's another Healthy price range for buyers and sellers alike.
Almost 118 homes sold in around 24 days on market (average) make this price range the HOTTEST part of the Garland real estate market. The average year built for these homes is 1978 and the average size is 1,771 sqft. Most of these homes may be over 40 years old but they don't look that way on the inside, with updates and upgrades to attract buyers who want the "new home look" without paying the full price tag of a new home. Higher interest rates have trimmed the number of buyers in most price ranges, but this is where the MOST buyers can be found. It's a Strong & Healthy price range, with a good balance between inventory and buyers to purchase them.
@ Sellers - Warning: After doing the updates and upgrades, it's too easy to get greedy and ask for 10-20k MORE than you should when choosing their list price. THIS IS A MISTAKE - When you price unrealistically, buyers know this... And by the time you reduce to a fair price, it's too late. Buyers very rarely pay fair market value when they see the weakness of your 20+ days on market. So by asking for 10-20k more, you end up getting much less than you normally would. We will help you get it right from the start, so you get the absolute most money. This is real money at stake!
About 50 homes sold in around 35 days on market (on average). These homes are largely built in the 80s and early 90s with an average size of 2,059 sqft. They are "older/not too old" homes with higher prices that most buyers can't afford to pay (due to higher interest rates on home loans). Watching these homes sit on the market, do you know what happens to their owners after 15 days on the market? To find a buyer, sellers are forced to realize that they will have to drop their price. This is what is happening here. Buyers have the leverage and sellers are willing to sweeten the deal in many ways beyond a discount. Did you know that sellers are allowed to pay money towards reducing your interest rate...Making your mortgage payments go down? This and MORE ways to "sweeten the deal" are on the table for negotiation to get you to buy their home. I would love to talk with you more about how to make these negotiations work for you. This price range? It's a BUYER'S Market.
Almost 59 homes sold in about 23 days on market. The majority of these homes were built in the 90s and early 2000s, with an average size of 2,541 sqft. The bigger homes always struggle to find buyers due to their higher prices, but this is another sign of why 'It's So Great to Own Property in Garland' (it's a book I'm writing : ). When "big home buyers" start shopping online, they put in their desired sqft and sort by "lowest price", most of the homes pop up in this city! So if you have a large home, you can count on attracting buyers from surrounding cities that are far more costly by comparison. It's a Healthy price range, with buyers paying fair market value and sellers mostly getting the price they are asking for.
With an average of only 24 homes sold in 22 days, it's a delicate balance between buyers and sellers. The majority of these homes are located in the newer part of Garland and built in the last 10 years, with an average size of over 3,000 sqft. It's another case of buyers following the discounts, leading them to Garland. These buyers are paying 20-30k less than the list price as sellers lower their prices after their homes sit on the market for a couple weeks. And these homes are big, with great amenities like big/open floorplans, game rooms, media rooms, and even swimming pools. It's a Healthy price range, which is amazing when compared to how this same price range is fairing in other cities (not great at all).
Advice for Garland Sellers:
This is the GREAT payoff for owning real estate in an average-income area. Affluent cities attracted more buyers (armed with cheap interest-rate loans) and they competed in bidding wars that OVER-HYPED their prices. And NOW when home prices have gotten too expensive, buyers go "on the hunt" to find a home they can afford... And this is where they land. Due to this, sellers in Garland (for the most part) are keeping their large, recent gains in value. Being surrounded by high-priced real estate doesn't hurt either! By comparison, Garland looks like an excellent deal for those looking for a short drive-time to work AND getting much more for their money. So it's a great time to sell, especially with recently declining interest rates making mortgage payments more affordable for even MORE buyers. Want to sell at a later time? Then consider an even better option... To convert your house into an income-producing property. It's never too early to think about retirement. There is an opportunity to make a wise decision here, so let's review all of your options so you don't have any regrets. Learning more is just part of the process.
Advice for Garland Buyers:
You have the leverage, the power, and the ability to negotiate big discounts! But since Garland is attracting so many buyers, you will have to compete with a few other bidders to get the home you want. It's not a bad thing! In other cities, prices are still dropping by 5-10% in most price ranges because there are far more homes than buyers. So, see this as an indicator that you are buying at the bottom of a market that can only go UP. As long as surrounding cities have over-hyped values, Garland real estate values will be kept afloat by a steady stream of buyers that see homes in this city as a great deal by comparison. Advice: Rest easy and feel good about buying here, and target outdated homes to negotiate big discounts. Please consider this: The market deduction for a home with bad flooring may be 20k, while it may only cost 10k to install new floors of your choosing. This puts an extra 10k of equity into your "home piggy bank" that you get paid when you sell this property someday. See how purchasing with strategy can build your retirement funds? Imagine if you leveraged multiple discounts from ugly paint on the walls, an outdated kitchen AND bad flooring. You would get a home with your desired look and feel while gaining 30k or more in equity. As your real estate guide, I would love to answer your toughest questions about how this process works and give you a customized, step-by-step plan to finally have the home of your dreams (at a dream price)! It's all within your reach.
In as little as 15 minutes, you can get answers to your real questions...
Thank you for taking the time to read through this real estate guide for homes in the city of Garland, Texas. Use this info to get a general idea of what's going on over the past 3 full months, and reach out to me at timothy@timothyhenley to start talking specifics related to you buying or selling a home. Great info is more valuable than gold or silver, and will free you up to see the next steps towards living your new life. Whatever that looks like!
Your Real Estate Guide for Life,