Everything has changed in real estate over the past 3 months. So how have the rising interest rates affected the buying and selling of homes in Carrollton, Texas?
The GREEN LINE is the number of sales in each price range. Most sales are happening at the 350k to 500k range. That makes sense, as the majority of homes are in that price range. But let's go one step further... How long did it take for those sellers to find buyers?
The BLUE LINE is the Cumulative Days On Market, or CDOM. It's great to see that all these homes were sold, but that doesn't tell how long it took for these sales to happen. In a healthy market, the CDOM needs to be in the 15-30 day range. In the 350-500k price range (the busiest), it took an average of 29 days to find a buyer.
Let's break down what's happening in Carrollton price ranges.
The 30 or so sales took about 35 days to sell (on average). This is more about the condition of the properties than the number of buyers willing to purchase in this price range. The majority of these homes were NOT MOVE-IN READY. So negotiations have to happen in order to find the right price/true value for each of these homes. Plenty of buyer demand here from investors and regular folks alike. It's a HEALTHY price range (with plenty of investment opportunities).
46 homes sold in about 27 days on market (on average). Big discounts start appearing after a home has been on the market for 30 days. At 27 days on market, this price range is barely hanging on. This is where the cheapest move-in ready homes can be found in the marketplace. Buyers Win this price range.
About 90 homes sold in around 33 days on market (average). At 30 days on the market, sellers realize that they have to drop their price to attract a buyer. That 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? This and MORE 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.
Strange things happening here. 35 homes sold in about 22 days on market. This is NOT NORMAL. Usually, the higher the price range...The fewer buyers there are. And with less buyers, you have homes that sit on the market for a looooong time. But that's not happening here for some reason. Congratulations Carrollton sellers in the $500-600k price range, you have plenty of suitors to purchase your homes. I don't expect this to last, but it's a Healthy Market with plenty of buyers to purchase available homes.
About 30 homes sold, but it took them almost a month and a half to find buyers (on average). The only homes sold WITHOUT HUGE DISCOUNTS in this price range are the beautiful properties that win the beauty contest among available homes on the market. Truly amazing homes are immune from high-interest rates and crazy markets. In a red-hot market, they sell for list price plus 5-15% so at least buyers now have a chance to own these dream homes for an honest price. For the REST of the homes out there, it's a battle to capture a buyer. It's a SUPER BUYER'S Market.
Advice for Sellers:
All of this is temporary. Right now there are more homes for sale than there are buyers, but the balance isn't so bad that it would cause anything to tip over. If you are a seller above 600k, count on selling at a 5% discount or more unless you have a truly exemplary home to sell. It only takes three buyers to establish real estate values in a neighborhood. So look around at the homes being sold around you. These are your greatest indicators as to whether your values will stay steady or lose value incrementally. The problem is that most sellers are in scramble mode to find a buyer, so they betray others' homes values to quickly cash out. If you must sell, let's talk about options to convert the home to a rental until interest rates lower. There is a wise decision to be made here, so let's review all of your options to avoid having regrets. IF you have to sell, there are some hidden strategies for attracting buyers to your home that most other sellers (or their agents) have no clue about (hint: it's what attracts people to buy a new home).
Advice for Buyers:
Temporarily, you have the leverage. It may not last quite as long as most reporters of "doom and gloom" are reporting (about a recession in 2023). While I may not know the immediate economic future, I do know that the Texas economy and our real estate values are surprisingly strong in the middle of the market, where most buyers/sellers meet to do business. This is the 300k to 500k range. For the moment, the number of buyers in the market has reduced so much that there are too many homes available. This means that buyers are getting discounts, interest rate reductions, upgrades and much more than they would otherwise. As your real estate guide, I would love to answer your toughest questions about how to proceed and give you a customized, step-by-step plan to finally have the home of your dreams.
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 Carrollton, Texas. Use this info to get a general idea of what's going on over the past 90 days, 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,