What can buyers and sellers expect from the rest of our 2019 market here in Ellis County and in the DFW Metro area?
First, let’s look at the current market statistics in Ellis County. We have 2.5 months of inventory, which means we’re still in a strong seller’s market. However, the tide is starting to turn in favor of buyers. This means if you’re a seller and you’ve been sitting on the fence, now is the time to capitalize on current conditions.
Furthermore, the average days on market is 60 days, and the list-to-sale price ratio is 96% (for our clients, though, the average list-to-sale price ratio is 99%). I’ve been selling real estate for over 25 years, and this has been one of the craziest markets I’ve ever seen. What I love about it is buyers have been able to buy homes at top dollar and then sell them later for an additional profit—even with Realtor fees.
Now, in terms of our broader DFW Metro market, there are four trends buyers and sellers need to be aware of in 2019, according to Realtor.com:
- More homes on the market. Additionally, luxury homes will stay on the market longer, which means sellers in the higher price ranges will need to be more creative to get their home sold in a timely manner.
- Shrinking affordability. We’ve seen a ton of economic growth in the DFW metroplex recently, but moving forward, affordability will become an issue for buyers, especially in the $250,000-and-under price range. When you combine this trend with rising interest rates, first-time buyers run the risk of getting priced out of the market.
- Changes in buyer demographics. Last year, 45% of all homebuyers were millennials (Gen Xers made up 36%, and baby boomers accounted for 17%). The buyers who will really be able to capitalize on the 2019 market are move-up buyers, because they’ll be able to use the equity they’ve built up as their current homes have appreciated and roll that equity into their next homes.
- The new tax law. Obviously we won’t know the full extent of this law’s impact until after April 15, but it’s still something to keep an eye on in terms of what kind of mortgage deductions you can make.
Overall, our market is still performing well. If you’re a seller, as I said, there’s no better time to enter the market than right now. If you’re a buyer, I’d advise you to jump into the market as well. Interest rates are climbing, but they’ve stalled a bit recently and are hovering around 4.375%, which is still historically low.
Whether you’re buying or selling, don’t hesitate to give my team a call so we can help you accomplish all of your real estate goals. If you have any other questions about our market, feel free to reach out to us as well. We’d love to speak to you.