April Newsletter- Markets Still Flying
“Winter’s done, and April’s in the skies, Earth, look up with laughter in your eyes!”
Charles G. D. Roberts
It has been an unusual April in North Texas this year and one of the windiest on record! The picture above was taken in the Azalea District in Tyler, TX a day before high winds came through and uprooted many trees in the area. Typically March is windy but this year April has felt like March. What about our housing markets? March and April are typically the beginning of the strong selling season that typically peaks in June or July. (you can check this out by looking at the history on the interactive charts if you are reading this on the blog) The markets are still going strong! Collin County is at an all-time high of a median sales price of $540,000. All four counties are up from last year.
With mortgage rates now higher than they have been in a decade, are there any signs of a cooling? It is of note that the numbers we are looking at are closed sales from March. Many of those went under contract in February so there is a lag in market impacts. The rise of mortgage rates will decrease the number of market participants, which will lessen the demand in turn balance out the market. However, this impact is not immediate. Once mortgage rates began to climb at a faster rate, many began to jump into the market to “get in before they get higher”. This reaction will dissipate and perhaps there will be some slight cooling in the market. Other market impacts to watch will be inflation, affordability, and rising rents.
With our current markets, the supply is still extremely low, houses are selling over list price and demand is still high. We will continue to watch our markets to see if there will be a slowing in the next few months. Here are the current numbers (remember to use the interactive links to get a good idea of how the markets are moving)
Median Sales Price
Months of Supply
Days On Market
Showings to Pending
Volume
Appraiser’s Corner
Check out this month’s information just for real estate appraisers. If you have information that you think would be good here, please let us know.
Great Appraisal Reads
Bias: Blame the Messenger?– George Dell
Who will drive future farmland prices? – Mike Downey
Do We Need a Neighborhood Section? – George Dell
Canada to Ban Foreigns from Buying Homes as Prices Soar – Bloomberg
A shift in demand for the housing market – Sacramento Appraisal Blog
Is Your Crazy Neighbor Lowing Your Home’s Value? – Cleveland Appraisal Blog
Understanding the Appraisal Part 3: The Cost Approach– Birmingham Appraisal Blog
I Can’t Get No Housing Satisfaction – Housing Notes, Jonathan Miller
Crazy Appraisal Stories! We all have them!– Appraisal Today
FHA adds 40-year loan term to COVID-19 arsenal- Housing Wire
Webinars
The Move to ANSI Standards Webinar– Valuation Review
Appraisal Policies, Principals, and Practices for Appraisers– FHA
Feeling ANSI about Fannie Mae’s New Measurement Requirement? – RAC
Free Webinar: The Appraisal Foundation 2022 Q2 Update– McKissock
“Let’s Talk Appraisals” Webinar with Jeff Allen & John Brenan -Cubicasa
What did I miss? What is happening in your market? Do you think housing prices will soon slow? What do you think the impact of inflation will have on the housing market? We will continue to watch the markets and provide monthly updates. Let us know how we can provide appraisal services and information for you!
About The Author
Shannon Slater
Shannon is a Certified Residential Real Estate Appraiser and serves as the Vice President of the DW Slater Company. She joined David at the DW Slater Company in 2006. Shannon graduated Cum Laude from the University of North Texas with a BA degree. Prior to joining the DW Slater Company, she was an Elementary School Teacher for the Pilot Point Independent School District. Shannon is an FHA Certified Appraiser. Shannon is a designated member of the National Association of Appraisers and a member of the Association of Texas Appraisers. In her free time, Shannon enjoys spending time with her family, singing in a local church choir, and tandem cycling with her husband.
Great job as always, Shannon. I appreciate the time you put into telling the story of your market. I’m anxious to see what the stats show over the next few months. In my area we are seeing a temperature change, but the market is still elevated beyond normal. It’s a play-by-play by the week to gauge any temperature change. What a time!!
It certainly is! We thought it was started to show signs of slight slowing but not this last month. It is still moving at a record pace. I know what you mean by trying to gauge the temperature, I too am anxious to see what the next few months will reveal. Thanks, as always, for your input!