The State of Real Estate: Summer 2022
Dallas temperatures are heating up as we approach summer, and the Dallas real estate market continues to be on fire. Will it ever cool down? It's hard to say for sure, but this week, we're going to take a peek at what the real estate market looks like now and what you can expect in the coming months. The more you know about what kind of market you're working with, the better prepared you can be to sell or buy a home.
Staging by Staging Dallas / Photo by Lance Selgo/Unique Exposure Photography
More Buyers are First-time Home Owners
According to the 2022 Texas Homebuyers and Sellers Report, 32% of all Texas homebuyers from July 2020 to June 2021 purchased a home for the very first time. The median age for these home buyers was 30 years old and made around $82,000 a year. For comparison, the median household income for Texas homebuyers was $107,500, $5,500 more than the national median, during this time frame. This means that although the first-time homebuyer makes less annually, more people are interested in having a place of their own.
Here's a breakdown of how Texas compares to the rest of the U.S. as both first-time homebuyers and repeat homebuyers.
According to the same report, there are a few reasons that more people from 2020 to 2021 were motivated to buy a home. However, the reasons differed for the people that chose to buy a new home or a previously owned home.
Top 3 reasons respondents from the survey wanted to buy a new home:
Avoid renovations or problems with plumbing or electricity
Amenities of new home construction communities
Ability to choose and customize design features
Top 3 reasons respondents from the survey wanted to buy a previously-owned home:
Better overall value
More charm and character
Just as the homebuyer has their own motivations to make a move, the home seller has their own set of reasons for selling their current home.
Top 3 reasons:
Change in family situation (marriage, birth, divorce, etc.)
The home is too large
The home is too small
Single-family Home Prices Continue Rising; Inventory Decreases
The Texas A&M Real Estate Center's Spotlight Report for March 2022 had some insightful statistics regarding what our current market looks like.
The average sales price rose 17.3% from $411,446 in March 2021 to $482,607 in March 2022
The median price rose 22.92% from $325,000 in March 2021 to $399,505 in March 2022
Days to sell declined from 71 to 63.
Despite rising prices and declining inventory, a larger amount of people desire to own their own home for the first time due to a variety of reasons, whether it's for new construction or a home that was previously lived in. We can expect this trend to continue as rental prices increase and the millennial generation grows their families. Do you find yourself looking to buy and/or sell? Despite the hot market, home staging is a good idea. Read about why here and contact us for a consultation.