Dallas, Texas, has a lot going for it. In 2017, the real estate market was red hot. Home values in the Dallas area has increased over the last couple of years. The low inventory is driving home sales in the area. Low inventory means that there are more interested buyers than homes. This creates a strong housing market for Dallas with many potential buyers contacting places like Magnolia Realty in Dallas, TX.
Understanding What a Hot Market Means
In a balanced housing market, there is about six months of supply. This means if everyone purchased a home it would take six months before there would be no more properties on the market. However, a lower inventory of houses means the Dallas real estate market could run out of houses for potential buyers to purchase. This makes the housing market a seller’s market and not a buyer’s market.
How a Buyer can Get the Property They Want in a Hot Real Estate Market
When trying to find a home in a hot housing market, it is important to have financing prior to finding the home. Cash buyers are out there, and they have the advantage. They can purchase the home immediately while a buyer without financing must take the time to obtain a lender. Getting pre-approved before looking for houses won’t stop a cash buyer from snapping up a home, but it will give other potential buyers more of an advantage.
Know the Housing Budget and Stick with It
Every potential buyer has a housing budget. The purpose of a budget is to find an affordable home. It allows a potential buyer to find their home quicker because they aren’t wasting time looking at houses they can’t afford. Another budget of a budget is future costs. Buying a home more than a budget can cause a person to run into foreclosure problems later if they can’t afford the property.
Remember It’s a Sellers’ Market
Don’t waste time quibbling with a home seller about a few pennies in the offer and counter offer. A seller doesn’t have to agree because they know they have an option of getting other potential buyers who will agree to their offer. This doesn’t mean there’s no negotiation. It means that nickels and dimes don’t matter when it comes to buying a house in a seller’s market. This means the seller has the advantage. That doesn’t mean the potential buyer can’t wait if the home is too expensive. They may be able to find another home within their price range.
Making a Home Purchase in Dallas, Texas
Texas has seen a lot of big increases in housing cycles before, but this time is a little different. The increase in the housing market is coming from corporation relocations and other expansions such as current buyers already having a home. Dallas is one of the hot housing markets in the country. It’s important to find the right home before it’s purchased by someone else.