Rising interest rates have some people convinced that home prices will start to drop. Will that happen here in Dallas?
For starters, it's important to remember that interest rates are just one factor that can affect home prices. Other factors include the strength of the economy, population growth, and housing supply and demand.
In Dallas we have a strong economy and the population is growing rapidly. In fact, 300 people move to Dallas every day! That's a lot of new people looking for homes.
There is also the issue of supply. Right now, there is a lack of housing inventory in Dallas. This is especially true for entry-level and middle-priced homes. Strong population growth and limited supply is pushing prices upward, even in the face of rising interest rates.
In the luxury market, there are less buyers qualified to purchase a home. As interest rates go up, we begin to see price reductions and motivated sellers who want out of this competitive environment as soon as possible!
So, what does all this mean for Dallas home prices? Interest rates are just one factor that can affect prices. Our strong economy and population growth will continue to drive demand for housing in Dallas. The lack of inventory will put pressure on prices in the lower price ranges. In the luxury market, we are already seeing price reductions and motivated sellers. If you're thinking of buying a home in Dallas, call us today! We'll help you find the perfect property at the right price.