Happy Summer! 

2023 has been quite the ride as far as the real estate market goes. From inflation-fueled mortgage rate hikes and failing banks to a worsening housing affordability crisis, it’s been anything but the status quo. 

I want to keep you updated on some of the trends we’re seeing — some of which will impact the options available to your clients when deciding whether to sell their house or refinance for a divorce equity buyout. Note: The following are national trends. Below that are local metrics I’ve put together so you can gauge the climate of our local market.

• Lack of inventory: As of July 2023, months supply of inventory for Collin County, which measures the number of months it takes to sell a home, was 2.2 months. Six months of inventory represents a balanced market, favoring neither buyer nor seller. With less than 3.0 months, the market continues to favor sellers strongly. 
• Lack of affordability: In part due to the sharp increase in mortgage rates we’ve seen this year (hovering near 7%), 5.5 million households can’t afford to buy compared to a year ago. In fact, housing affordability continues to fall. The National Association of Realtors Housing Affordability Index reports the number fell to 96.2 this spring. An index below 100 means that a family with a median income has less than the income required to afford a median-priced home.
• Days on market correction: After peaking in January 2023 at 45 days on market, Collin County has come back down to 19 days on average as of July 2023. This signals that our local market is picking up speed. Noting that buyers are still in demand for properties priced to move and in great condition. 

The extreme lack of affordability is balanced out by the extreme lack of inventory, thereby keeping home values high and days on market low. 

Local Trend in Prices: 

Currently, our market is seeing an Upward trend.

Pricing Note: House values can fluctuate through the seasons. Spring is a different market than the fall; mid-summer looks much different from the end of the year. So in order to get an accurate reading as to whether or not prices have fallen or risen, we use the “year over year” barometer. 

Local Days on Market:

Days on Market (“DOM”) Note: This metric will tell us how long it takes for homes to sell. This number is largely driven by supply and demand. An uptick in interest rates can cause DOM to increase; a drop in unemployment can cause DOM to decrease. All sorts of economic factors can affect this number, and ultimately, DOM affects pricing. When there are low days on market, prices go up; when DOM increase, prices go down. 

Market conditions are constantly fluctuating. Values that exceed 90 days are likely no longer relevant. If you’d like an updated valuation, feel free to give me a call directly or email us.

**Please note the data included herein is procured from the North Texas Real Estate Information Systems as of August 15, 2023 for an end date of July 31, 2023.