For several days now an article has been floating around news sites that real estate prices are about to fall in Dallas, Denver and Houston. In addition I understand that the article was mentioned on one of the local TV stations. The article was written by a professor at a college in Florida who was part of a team that developed some kind of a Rent vs. Buy index. Here is a link to the article:
After reading the article, it is my opinion that the professor needs to find an Economics 101 class and retake it. If he did, he would probably hear about the Law of Supply and Demand. This Law is quite simple. It states that when demand exceeds supply the price rises. When supply exceeds demand prices fall and when supply and demand are equal prices are flat.
I can not speak to the Denver or Houston markets but I can the Dallas market. For the past several years Demand (people moving in the area and needing housing) has exceeded the Supply(number of housing units available). Here is a link about people moving to Texas and the Dallas area:
Now, how can you tell what the Supply/Demand in the Dallas area really is? That's simple! Just follow my blog www.mariesellsdallas.com. Every month, around the 8th, I write a post about residential real estate activity in the Dallas area. This post is followed during the month with posts about the residential real estate activity in 10 of the northern suburban Cities around Dallas.
One of the numbers is the article is Months of Inventory. This number is the amount of time that it would take to sell the current inventory (Supply)based upon the current sales(Demand). The months of inventory at the end of December was 2.1 months for the Dallas area. If you see this number increasing over several months then either more supply is coming on the market or demand is slowing. You can tell if it's more supply by the number of active listings on the market. Look at the number of sales to see if the demand is dropping.
A balanced Supply/Demand is considered to be 6 months. If this number is greater than 6 then the market has shifted from the current Seller's market to a Buyer's market.
If you are thinking about buying a home or selling your existing home give me a call and put my over 30 years of knowledge and experience to work for you.
One of the numbers is the article is Months of Inventory. This number is the amount of time that it would take to sell the current inventory (Supply)based upon the current sales(Demand). The months of inventory at the end of December was 2.1 months for the Dallas area. If you see this number increasing over several months then either more supply is coming on the market or demand is slowing. You can tell if it's more supply by the number of active listings on the market. Look at the number of sales to see if the demand is dropping.
A balanced Supply/Demand is considered to be 6 months. If this number is greater than 6 then the market has shifted from the current Seller's market to a Buyer's market.
If you are thinking about buying a home or selling your existing home give me a call and put my over 30 years of knowledge and experience to work for you.
Marie Walton, ABR, CRS, GRI, SRES
Ebby Halliday, Realtors
972-816-5197
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