CEO Today Magazine - October 2022

massive sell-off of real estate while home values were still high and rates were still low in Q1 2022. As rates continued to rise, with absolutely no indication of slowing down this year, home sales slowed proportionally. Sellers were no longer getting dozens of offers, homes were sitting on the market for more than 24 hours, and buyers became more hesitant to buy. There is fear, on one hand, for buyers who don’t want to overpay for the home and fear for sellers, on the other hand, for not being able to afford anything better than the property they already have. Many homeowners capitalised on the refinance boom in 20192020-2021 and had locked in historically low-interest rates. Selling that home meant losing that rate. Sellers were faced with selling and utilising their significant equity gains as a down payment on something different (bigger homes for growing families, smaller homes for downsizing empty nesters, etc.), but their buyer power significantly dwindled with the rise in rates into the 4%-5%-6% ranges over a short period of months. A lot of sellers panicked that they might struggle to find a better property than the one they already own or that they might end up paying more for something that doesn’t fully satisfy their requirements. Many buyers had become frustrated with the state of the seller’s market over the past few years, and especially the past year, and were becoming discouraged. Those buyers who tirelessly searched for homes, sometimes submitting numerous offers, ended up leasing homes. DFW already has a strong leasing market because of our millennial population, robust inbound population growth, and a thriving economy. The new ‘local renters’ squeezed the lease market even tighter. We started seeing lease homes in bidding wars! It is not unusual in this market for a tenant to offer to pay an entire year’s rent up-front to secure a lease. We are starting to see the market stabilise with less of the roller coaster effect. Pricing strategies for home listings have fallen more in line with actual sale prices and we are even seeing rebounding price reductions. The market is far from “balanced” or “normal.” DFW remains a seller’s market because of the lack of inventory. However, buyers should find it less difficult in the coming months as I expect the pace of rising home prices to decrease. My advice to clients remains unchanged – now is a good time to buy. DFW has had seven consecutive years of record highs for both home sales and median home prices.* * Texas REALTORS® review report for the last year. is being made with an expert partner there to support and guide them. We only work with clients where we can add true value. When you work with us, you are not working with just any broker but one who isn’t afraid to be an industry disruptor. Every client, every transaction, and every partnership is unique – we care about the details. This approach allows us the opportunity to analyse a situation, provide in-depth insight and recommendations, and firmly negotiate to deliver the best possible deal based on our clients’ needs strategically and creatively. Simply put, we are committed to our clients’ success. What’s the current state of the market in Dallas/Ft. Worth? As mentioned earlier, the market was a strong sellers’ market up until early 2022; then we started to see the pendulum swing again. It was just as much of a shock to realtors, as it was for lenders when we saw unprecedented interest rate increases in 2022. I was writing loans the week after Christmas in the 2% range, and we jumped into the 3% rate range shortly after the start of the new year. Today, we would be thankful to see rates in the 3% range again. The real estate market in DFW saw a ripple effect from the rise in rates. First, there was a THE CEO INTERVIEW "People work with Emmly Group not because we are the biggest brokerage in town but because we are one of the best at what we do. "

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