Market Report January 2022

Dear Neighbor,

It’s true—maintaining an oversized home as you prepare for retirement can be stressful. After a while, cleaning a large house and spending more money on updates just doesn’t make sense. Now you’ve decided to sell, but like most homeowners, you’re not sure where to start.

You want to get your home sold without a whole lot of stress and worry—and do it fast. That’s why you deserve the guidance of someone with experience in the field. Like you, I live in Heritage with my family and I know the neighborhood very well.  As you prepare for your transition, here are the top things to know about the Heritage real estate market:

 Competing Bids on Redfin Decreased to Less than 60% in November

According to Redfin, only 59.5% of the offers that were written by agents working for Redfin faced competition. The rate of offers that experienced competition hadn’t dipped below 60% since November of last year. This indicates that buyer demand is dropping as more homes are entering the market.

“Bidding wars are still happening, but buyers are starting to get more breathing room,” said Jill Thompson a Redfin agent in Indianapolis where the bidding-war rate dropped to 36.8% in November from 73.6% in October. “A few months ago, the typical home was going for $15,000 to $20,000—sometimes even $50,000—over the asking price. Buyers were paying cash, waiving inspection contingencies, and overlooking necessary repairs in order to win,” Thompson continued. “Today, buyers are more cautious about overpaying, aren’t waiving inspections as freely as they were in the spring and feel less of a rush to commit to a house after the first tour.”

What a Reduction in Competing Bids Means for North Texas

The data from Redfin includes information about several metro areas throughout Texas, which gives us a better understanding of what the situation looks like in North Texas. When it comes to our area, I’ve noticed similar patterns over the past couple months, which is entirely normal for this time of year.

Even though the percentage of homes that saw competing bids fell to less than 60% for the first time since November 2020, a similar drop occurs nearly every winter. While it’s always possible that we will see the continued climb of the real estate market throughout 2022, it is normal for a pull back to occur during the winter months.

As a Heritage homeowner, what does all this mean for you?

Well, if you’re thinking about selling in the next 12 months, now is the time to start preparing for the market.

In addition to working as an agent, I am a homebuilder. Meaning, I don’t just sell homes, I build them. That means I can help you with any repairs that may need to be made prior to going on the market, and work through items that might come up during the home inspection.

You will benefit from my real estate expertise as I give you step-by-step support and clear communication along the way. You’ve worked hard for what you’ve earned, and you deserve to capture your equity without a lot of stress and heartache. With my ROI-based property updates, highly targeted pre-listing marketing, and a systematized approach, you can rest easy knowing you are in good hands.

If you’re thinking about selling your home in the next 12 months, call me today for your Strategic Marketing Consultation 817-888-0683.

We will cover your goals and my unique approach to getting you the highest possible price in the fewest days on market.

Looking Ahead

Once the spring arrives, we should start seeing a notable increase in the amount of competition on the North Texas real estate market. Even during the cold winter months when sales always decrease, the decrease has been relatively small this year. During most years, the short lull in the market throughout the winter dissipates by the springtime. Although mortgage interest rates aren’t going to continue being as low as they were in 2021, the largest increases in interest rates are expected to occur in 2023, which means that 2022 is the perfect time to sell.

When you choose to sell your home mainly depends on the reason for your move. If you need to move quickly because of a job relocation, the low interest rates are still in place, which means that you should receive numerous bids on your home even if you list it during the winter. If your home creates a bidding war, you’ll find that negotiating a higher sale price is considerably easier especially with the help of a seasoned real estate professional.

Market Report December 2021

Dear Neighbor,

 

It’s true—maintaining an oversized home as you prepare for retirement can be stressful. After a while, cleaning a large house and spending more money on updates just doesn’t make sense. Now you’ve decided to sell, but like most homeowners, you’re not sure where to start.

 

You want to get your home sold without a whole lot of stress and worry—and do it fast. That’s why you deserve the guidance of someone with experience in the field. Like you, I live in Heritage with my family and I know the neighborhood very well.  As you prepare for your transition, here are the top things to know about the Heritage real estate market:

 

Zillow Pulled Out of the ibuyer Market

 

Last month, Zillow announced that it was pausing its buying of houses for the rest of the year and will be winding down its ibuyer program altogether. You may have heard of people getting an offer on their home from Zillow.  This was an effort by the hedge-fund backed company to get into the house flipping game.  Zillow was making all-cash offers to sellers and allowing them to close on their timeline and avoid listing their home on the market with an agent.  While the convenience factor was appealing for some sellers, many times sellers would discover going through the process with Zillow that they would have made at least 10% more money if they had listed their home with a traditional agent. Zillow charged sellers various market contingency fees and adjustments to the sales price after the inspections were conducted resulting in a lower net number at the closing table.

 

As the market continued to climb in 2020-2021, Zillow underestimated how quickly the market would rise and had overextended themselves with too many offers on homes across the nation.  Bottom line, they couldn’t figure out how to make money owning residential real estate.  As an investor, I have been watching this happen in North Texas.  We are now seeing all the homes Zillow purchased in Heritage being listed for sale.

 

What We Can Learn from Zillow

 

Zillow is a highly sophisticated company, backed by Wall Street that uses algorithms to inform their valuations, purchasing and selling decisions.  If they could not time the market, it stands to reason that we cannot either.  Zillow is seeing something that is causing them to sell.  Prices cannot keep climbing forever.  I think it would be wise for homeowners to take note.

 

As a Heritage homeowner, what does all this mean for you?

 

Well, if you’re thinking about selling in the next 12 months, now is the time to start preparing for the market.

 

In addition to working as an agent, I am a homebuilder. Meaning, I don’t just sell homes, I build them. That means I can help you with any repairs that may need to be made prior to going on the market, and work through items that might come up during the home inspection.

 

You will benefit from my real estate expertise as I give you step-by-step support and clear communication along the way. You’ve worked hard for what you’ve earned, and you deserve to capture your equity without a lot of stress and heartache. With my ROI-based property updates, highly targeted pre-listing marketing, and a systematized approach, you can rest easy knowing you are in good hands.

 

If you’re thinking about selling your home in the next 12 months, call me today for your Strategic Marketing Consultation 817-888-0683.

 

We will cover your goals and my unique approach to getting you the highest possible price in the fewest days on market.

 

Looking Ahead

 

  1. Existing Home Sales Will Pull Back

We can expect to see a mini surge before end of year and early next year. According to the National Association of Realtors, there were 5.7 million homes sold last year and 6 million in 2021. However, the overall existing home sales are projected to pull back by about 2% for 2022.  Still very strong historically, but a slight downward trend seems to indicate we could see things start to settle down (i.e. more supply, days on the market, less over-asking offers and lower sales prices).

 

  1. Fed Will Raise Rates in Late Q3/Early Q4

With Jerome Powell getting another term, it is a little more predictable how the fed will operate versus if we had a new Fed Chairman altogether. He has made clear his main focus will be on curbing inflation by reducing the fed’s bond-buying practice (quantitative easing).  This will inevitably lead to interest rates rising in the mid-term.  Economists are predicting rates will creep up and an overall increase of .07%-1% by late September-December 2022 timeframe. This will slow down the real estate market. Don’t wait until late next year to put your home on the market, now is the time to call your real estate professional to get your home sold for the most amount of money and appeal to the largest pool of potential buyers.

 

  1. Capture Your Home’s Equity, Reinvest and Put Some Money Away

Warren Buffett said that it is wise for investors to “be fearful when people are greedy, and greedy when people are fearful.” Sellers have enjoyed lining their pockets in this runaway real estate market. Looking at the economic tea leaves, we can see that now is a great time to capture your home’s equity, rebalance investments and save for a rainy day. Hiring a real estate professional will help you maximize the wealth you have built in your home.

Market Report November 2021

Dear Neighbor,

 

It’s true—maintaining an oversized home as you prepare for retirement can be stressful. After a while, cleaning a large house and spending more money on updates just doesn’t make sense. Now you’ve decided to sell, but like most homeowners, you’re not sure where to start.

 

You want to get your home sold without a whole lot of stress and worry—and do it fast. That’s why you deserve the guidance of someone with experience in the field. Like you, I live in Heritage with my family and I know the neighborhood very well.  As you prepare for your transition, here are the top things to know about the Heritage real estate market:

 

The Market is Shifting.

 

Right now, it looks like the market is leveling off. This could partly be due to the time of year, as most people are now settled from their summer moves and have their kids in school. A large part is likely due to the increase in supply. Builders have been trying to make their hay while the sun is shining by increasing housing starts.

 

According to the U. S. Census Bureau’s Survey of Construction, Texas accounted for 81.6% of the nation’s total single-family permits in 2020. DFW built more homes than the entire state of California last year! While inventory is increasing, there’s still opportunity to capture interest from buyers who can’t wait for a build and are ready to buy now. Working with a real estate professional to put the right strategy in place is key to making sure you sell high and fast.

 

Now is a Good Time to Sell.

 

It is very difficult to time the market.  However, if you have been thinking of making a move for your family, now is a good time to sell. The current situation is high prices, lower supply, and high demand for your home. Would you like to keep waiting at the risk of any one of these three factors changing? If you already know you want to move, I would recommend selling. Now is the time to capitalize on market conditions and leverage my real estate expertise.

 

“We would love to sell, but where would we go?”

 

I hear this question a lot, but I must say the cost of waiting is costing you a small fortune. Over the last year, we have seen houses in Heritage rise 13.2% versus 19% in Tarrant county as a whole. Yes, your home is rising in value, but you are also missing out on the appreciation of your next home that is likely increasing in value at a faster clip. Industry experts project home values will increase 7.7% over the next year nationwide.  If they are right, that means a house valued at $650,000 today will be worth over $700,000 by 2022. That’s over $50,000 being left on the table in a home that would suit your family better at this stage in your life.

 

Currently, interest rates are just above 3%. Not only will your purchasing power go down if rates slightly increase, but your payments will go up a few hundred dollars each month resulting in tens of thousands of dollars in extra interest over the life of the loan. All those factors considered, it makes more financial sense to buy now, locking in a price and rate which will save you a ton of money. If you are worried about overpaying, you won’t. Twelve months from now, you will be glad you made the decision to buy. If you are worried about finding something, that’s where I can help.  I would much rather you be proactive during these times with a clear strategy and my expert guidance versus being reactive to a shifting market.

 

As a Heritage homeowner, what does all this mean for you?

 

Well, if you’re thinking about selling in the next 12 months, now is the time to start preparing for the market.

 

In addition to working as an agent, I am a homebuilder. Meaning, I don’t just sell homes, I build them. That means I can help you with any repairs that may need to be made prior to going on the market, and work through items that might come up during the home inspection.

 

You will benefit from my real estate expertise as I give you step-by-step support and clear communication along the way. You’ve worked hard for what you’ve earned, and you deserve to capture your equity without a lot of stress and heartache. With my ROI-based property updates, highly targeted pre-listing marketing, and a systematized approach, you can rest easy knowing you are in good hands.

 

Looking Ahead

 

  1. The Heritage Market Is Shifting

 

Although we are still in a strong seller’s market (with low inventory), the data is not catching up with the changes in the market that I am seeing in my everyday negotiations. While houses are still getting an offer or two, they are not getting 4 or 5 offers and calling for “highest and best” by 6 pm on Sunday like we saw this past summer. I have seen more offers come through with financing as opposed to the unprecedented amount of cash buyers that we had in 2021. We are no longer seeing $30-40k over asking price offers. Most homes are selling for asking price or slightly less.

 

  1. Capitalizing On The Current Economy

 

Many experts are saying that the stock market is due for a 10% correction by March or April. The volatility in the stock market has more of an effect on the higher-end homes like Heritage compared to starter homes. Buyers and sellers will have to evaluate whether to dip into their portfolios in order to make a move.

 

No one can predict the stock market, and nobody knows the exact peak of the housing market.  As the old saying goes, “pigs get fat and hogs get slaughtered.” However, as a trusted real estate advisor, I want to tell you, if you were already wanting to move, now is the time to consult with a real estate professional to put a strategy in place to sell and capture the equity you’ve built in your home.

 

  1. What to Expect When Selling Your Home

 

Selling in today’s market requires you have the right strategy in place. It’s not as simple as listing your home on market. Those days are past us. You’ll want to have a clear marketing strategy that attracts qualified buyers. It’s not too difficult if you work with a professional who knows what they’re doing.

 

If you’re thinking about selling your home in the next 12 months, call me today for your Strategic Marketing Consultation 817-888-0683.

 

We will cover your goals and my unique approach to getting you the highest possible price in the fewest days on market.

 

To Your Success,

 

Joel C. Allen
TREC #0702231

Allen Real Estate Group, LLC.
All City Real Estate, Ltd. Co.
www.allenrealestategroup.com
joel@allenrealestategroup.com
817-888-0683

 

 

 

 

 

 

 

 

 

Market Report October 2021

Dear Neighbor,

Maintaining an oversized home as you prepare for retirement can be stressful. After a while, cleaning a large house and spending more money on updates just doesn’t make sense. Now you’ve decided to sell, but like most homeowners, you’re not sure where to start.

You want to get your home sold without a whole lot of stress and worry—and do it fast. That’s why you deserve the guidance of someone with experience in the field. As you prepare for your transition, here are the top things to know about the Heritage real estate market:

 

Home Values Are Increasing

The national inflation rate is at 5.3%. Inflation marks the general increase in prices and the fall of the purchasing value of money. As the economy is recovering from the COVID-19 pandemic, there are runaway prices everywhere you turn. If you had a dollar back in January, by December 31st this year it would only be worth 94.7 cents. If you had $200,000 saved up, by year-end it would only have the purchasing power of $189,400. My wife likes to shop at Costco for our family and she said that the price of a 10lb bag of chicken breasts has risen from around $18 to $28.99. Used car prices rose 29.7% compared to 2020.

To combat inflation, we need assets, because they’re a hedge against inflation. One of the best assets to invest in is the real estate ladder. For instance, home prices of 2,500 sq ft and above in our neighborhood have gone up 13.2% since last year. So, adjusted for inflation, a home worth $455,000 this time last year, would be worth $490,945. For homeowners interested in selling, enlisting the help of a real estate expert is crucial for developing a proper, profitable strategy.

Despite price increases, it’s still a great time to lock something in and buy. As a trusted real estate professional, “I eat my own cooking.” I am still buying real estate in this market. I just bought my 9th house this past month and plan to buy more.

 

Buyers Are Out in Droves

The Heritage market continues to see buyers eagerly looking for homes. The median days on market for homes 2,500 sq ft and above in August is down 90% from 41 days in August 2020 to only 4 days in August 2021. Months of inventory have dropped from 2.5 months to only 0.5 months. While buyers are eager, the rate at which you sell largely depends on your strategy. Having a real estate professional help you strategize and prepare your home with possible ROI-based upgrades can be the difference between thousands of dollars.

An Amazon Electric Vehicle Plant Is Coming to Fort Worth

Rivian Automotive Inc., the electric vehicle startup backed by Amazon, is preparing to invest 5 billion dollars in Fort Worth. Their proposed site will be adjacent to Walsh Ranch in South Fort Worth and span 2,000 acres.

If this all goes through, it would be one of the largest economic development projects in Texas’ history. I heard that the Texas Governor, Greg Abbott said that it was “priority one” for TxDOT to accommodate the additional traffic on I-20. According to Dallas Morning News, the factory would be able to produce 200,000 electronic vans and trucks and bring over 7,500 jobs by 2027, which is near twice as many jobs, and five times as much investment, as Toyota North America’s headquarters relocation from California to Plano.

So how does this affect you in North Fort Worth? Jobs bring people, people buy houses, which subsequently moves the real estate market. I expect to see home prices continue to climb. Traffic on I-20 bleeds over to 820, which connects to I-35. Some will prefer our schools, amenities, and being closer to the airport, so they won’t mind the commute to the plant.

As a Heritage homeowner, what does all this mean for you?

Well, if you’re thinking about selling in the next 12 months, now is the time to start preparing for the market.

In addition to working as an agent, I am a homebuilder. Meaning, I don’t just sell homes, I build them. That means I can help you with any repairs that may need to be made prior to going on the market, and work through items that might come up during the home inspection.

You will benefit from my real estate expertise as I give you step-by-step support and clear communication along the way. You’ve worked hard for what you’ve earned, and you deserve to capture your equity without a lot of stress and heartache. With my ROI-based property updates, highly targeted pre-listing marketing, and a systematized approach, you can rest easy knowing you are in good hands.

If you’re thinking about selling your home in the next 12 months, call me today for your Strategic Marketing Consultation → 817-888-0683

We will cover your goals and my unique approach to getting you the highest possible price in the fewest days on market.

To Your Success,

Joel C. Allen
TREC #0702231
Allen Real Estate Group, LLC.
All City Real Estate, Ltd. Co.
www.allenrealestategroup.com
joel@allenrealestategroup.com
817-888-0683