Everything has changed in real estate over the past full 3 months. So how have the rising interest rates affected Plano, Texas?
The GREEN LINE is the number of sales in each price range. Most sales are happening at the 400k to 600k range. That makes sense, as the majority of 'move-in ready' 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 Days On Market, or DOM. 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 DOM needs to be in the 15-30 day range. The homes in the 400-600k price range had to wait around 27 days to find buyers.
Let's break down what's happening in each price range.
The 68 or so sales took over 25 days to sell (on average). The average build date of these homes was 1982 and the average size was 1,888 sqft. So plenty of buyer demand here from investors looking for income-producing rentals and regular folks alike. This price segment represents the cheapest, mostly move-in-ready homes you can find in Plano. Demand is strong, but sellers are not getting anywhere near full asking price. It's a Buyer's Market in this price range with the average home selling at a 4.28% discount (or around 16,000 dollars).
@ Buyers - Did you know banks will include upgrades and renovations into your home purchase loan? Use the market discount to your advantage and use these dollars to get upgrades you usually only find 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.
157 sales as the previous price range that sold in around 27 days. This is the HOTTEST price range. Higher interest rates may have trimmed the number of buyers in most price ranges, but this is where the MOST sales activity can be found. This is as good as it gets for sellers since this price range has the highest number of buyers actively shopping for a home. It's still a Buyer's price range with an average discount of 2.67% (or about 13 thousand dollars).
@ Sellers - After updating your home and doing some upgrades, it's easy to get greedy and ask for 10-20k MORE than they should when choosing their list price. But 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 your list price when they see the weakness of your 20+ days on market.
Almost 110 homes sold in around 28 days on market (average). Watching these homes sit on the market, do you want to know what happens to homes after 15 days on the market? Sellers realize that they have to drop their price if they want to attract a buyer. 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? 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 with an average discount of 3.07% (or around 17,000 dollars).
About 73 homes sold in around 33 days on market (on average). Buyers have the leverage on most homes in this price range but it's not all bad news if you are a future seller. The nicest homes for sale in this market are still being sold within a week or so of them hitting the market. These amazing know they will get full value if they are willing to wait for a full-price offer. For the other 98% of homes in this price range, they need upgrades to attract a serious buyer. It's a Buyer's Market now and will get even better as we enter the new year. These homes are selling at an average discount of 3.42% (or around 22,000 dollars).👀
Advice for Sellers:
All of this is temporary. Right now there are more homes for sale than there are buyers. If you are a seller above 400k, count on selling at a 3% discount or more unless you have a truly exemplary home. It only takes three buyers to establish real estate values in your 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 (by little or a lot). 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 400k to 700k 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 Plano, 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,