With what seems like an ever-changing (and drastically changing) market, buyers and sellers are left wondering how this change will affect them as they look to buy or sell their homes in the near future. Earlier this year we had the chance to interview our broker, Mark Wolfe, and hear his expert opinion on how the rapidly changing real estate market affects you. We hope our interview with Mark will help guide you to better understand what's happening in the market and what this means for you.
Mark is a native Dallasite and has been a player in the real estate industry for the last 48 years. Mark and his wife founded RE/MAX DFW Associates in 1982 and today, it is one of the largest brokerages in the country.
Q: Can you explain the role of a broker?
Mark: A broker is not only the owner of the real estate company but is also someone who mentors and guides the agents that work for the brokerage. In my brokerage, I currently have 320 agents and I am liable for these agents as well.
Q: How has the market changed this year?
Mark: Over the past year, we've seen unprecedented inflation and price increases. Some markets have leveled out while others have remained "hot" markets. We are in a unique time where we are seeing inflation along with supply chain issues and other world events that are affecting our economy. All of these together have had a tremendous effect on the housing market. We experienced a market "boom" where any home could sell at any price but that wasn't sustainable forever. Interest rates have increased to help combat inflation but we are still playing catch up.
Q: Is the 2022 market doing what you expected?
Mark: In many ways, yes. I expected to see massive inflation and interest rates rise and knew that this would affect the housing market. However, the thing that has surprised me is how the market changed overnight. I don't ever think I've seen a market change that quickly. While the market typically gradually changes, at the beginning of May this year, we saw it change drastically within days.
Q: What are buyers and sellers contending with today that prior to May they weren't?
Mark: I was doing some research in "Showing Time" where our agents book their showings and in May of this year we were averaging half of the showing appointments that we had done in May of 2021. Additionally, so many homes went on the market. We saw a 33% increase in listings in the month of May alone.
Q: Is this change leading to prices decreasing and home values declining? Do current homeowners need to be concerned about their home value declining?
Mark: It appears that in this new market the home values are maintaining. What is changing is the need to go significantly over the asking price to get a home. It's still a great market, but it's a different market.
Q: So, if I'm a buyer, what do I need to know about this change in the market?
Mark: Buy now! Interest rates are only going to continue to rise. Start looking for a home now and find a lender that will allow you to lock in the interest rate. Take the time to find the home you want, but get the rate locked in.
Q: If I'm a seller, what do I need to know about this change in the market?
Mark: There will be more homes on the market than we've seen in the past. So, as a seller, you need to have things fixed up and the home staged. Make sure your home is picture perfect and you will still get top dollar when you go to sell.
Q: Would you say that now more than a year ago it's so important to list your house appropriately and not be too aggressive with the list price?
Mark: Definitely. The market is changing. It is still going to be competitive because the need for homes in the DFW area will keep a demand, however, it is more important now to make sure your home is priced right.
You can listen to the complete interview with Mark in the podcast linked above. For more real estate news, economic predictions, and local housing market updates, subscribe to our bi-monthly email list.
If you're thinking about buying or selling your home, give us a call. We'd love to help you think through how to make the most of this ever-changing market.
Until next time,
Brianna and Keelie