DFW Summer Market Update

Dated: 07/21/2020

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Few things about the future are certain ever, but that is especially true right now with all of the unknowns surrounding the current pandemic and recession. While there’s no crystal ball that can predict the future of the real estate market, here’s what has been happening and what we know about our market today.

Throughout history, there have been plenty of recessions, and there have been plenty periods of economic prosperity in between. Remember that a recession is defined by economists as 2 or more consecutive quarters of GDP decline. The economy has always been a cycle of ups and downs over time. The 2008 recession hit hard, and the resulting wounds are still healing for some, so it’s no surprise that many homeowners worry about the value of their homes taking a nosedive. However, with the exception of the 2008 recession, home prices remained fairly consistent during other recessions in previous decades, and home values recovered once the national economy stabilized again. Remember that home lending practices played a part in causing the 2008 recession, so it’s not a surprise that home prices were impacted as a result. The current recession had other causes, including trade disputes and, of course, pandemic shut downs.

Another historical trend has been that new home starts declined during previous recessions, likely due to a combination of fewer buyers contracting to build new homes and home builders pulling back on speculative build jobs (homes built to be sold to buyers that can’t or don’t want to wait for construction). Because of this, when the country comes out of recession, there is often a shortage of available housing.

As of June 2020, we have seen a steady reduction of new home inventory for sale. Overall, the inventory of homes for sale, new and pre-existing, has decreased by 33% when compared to June 2019. At the same time, overall sales increased by 11%. So far, time on the market has remained pretty consistent, and home prices are trending up by about 3% over last year. Interest rates dipped below 3% for a while, and have remained historically low, while consumer confidence has increased. Demand for suburban homes and land have been especially strong as more and more professionals are working from home and not tied to a reasonable commute (see our previous blog on this topic here). 

Like they say, the best time to buy a home really has to do with your needs and financial ability, more than what’s going on in the market. That’s especially true when you have to sell a current home in order to buy the next one. We all love a good deal, but the market you sell in is the same market you’re buying in unless you rent for a while or move to another city with entirely different economic conditions. 

Contact a GroupWatsonAgent TODAY for Professional Advice & Expert Direction.

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972.370.1775 | BuyOrSell@GroupWatson.com


12924 State Highway 78 N, Blue Ridge Texas

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Tom Sonnier

Tom is a customer focused, detail-oriented professional who specializes in building relationships and garnering trust. He spent 20+ years owning a successful Franchise business, which taught him to st....

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