Wednesday’s interest rate hike, the fourth given for the price fight, continues to affect the housing market, even in North Texas.
A DFW retailer said shoppers are more cautious, fearing they won’t be able to make purchases.
The 30-year mortgage rate has already exceeded 7% for the first time in two decades, according to mortgage giant Freddie Mac.
Michele Wood and her husband are ready to retire at home in Arkansas if they can sell their house in Denton.
“I wish we did this in August because our house would probably be sold by then,” Wood said.
Their three-bedroom, two-bathroom home on White Dove Lane has been on the market for 27 days.
There have been some interested buyers, including two competing financial offers that came in asking, but no deal has been made.
“Yeah, I was a little surprised, but the real buyer is out there,” said buyer Joanne Condi, of Remax DFW Associates in Frisco.
Condi said North Texas’ red-hot home market is cooling as the summer is tough and interest rates are low and competition is driving up prices.
“In places like Coppell, if I had an open house there, I’d have 30 couples line up,” Condi said.
These days, only a few prospective buyers show up for open houses.
Sellers and buyers must contend with rising interest rates, fewer shows and more inventory.
“I think we should know that interest rates are at 7-8%,” Condi said.
Condi said inventory in and around Denton is currently holding up to two months, but he doesn’t expect North Texas to get six months worth of inventory that would prove a good home brand for both retailers and consumers.
Home prices are falling.
He said, “Krum, which is closer to the north of here, has started to reduce their prices.” “Frisco continues to lower their prices.”
Some marketers are also turning to another belief.
Wood is willing to offer the buyer $3,000 which can go toward closing costs or if the buyer chooses to apply for a ‘point buydown’ to help reduce their interest.
“It’s a little expensive. It can be $1,000-$2,000 sometimes depending on the credit score of the buyer and how much they’re putting down,” said Condi of the buydowns. “There are some lenders out there that do even two purchases and can go down to 5%. So, for the first year, you can get it at 5.5%, the second year of your mortgage may be. 6.5% in the third year will return on your mortgage interest.”
Condi advises prospective sellers to find an experienced realtor first.
“Don’t spend $50-60,000 in repairs before you call the dealer because you’re not going to get all that money back,” he said.
Be patient but be prepared, as the tree urged.
“Always prepare your house for when someone says: I’d like to come in,” Wood said. “Sure! Come right over. I’m ready for it.” Condi holds an open house at 1501 White Dove Lane in Denton on Sundays from 2 p.m. to 4 p.m.
Condi is holding an open house at 1501 White Dove Lane in Denton on Sundays from 2 pm to 4 pm.