State of Housing Market

With stronger employment numbers the FED is continuing the path to raise the rate. The 30-year fixed rate stood at 5%. As the FED embarks on its journey to curtail raging inflation there is a high probability that the rates may go up in the short term.

According to Fannie Mae, the home purchase sentiment index decreased 3.4 points in June to 64.8 this is the lowest reading in a decade. The percentage of respondents who said it was a good time to buy increased from 17% to 20%. The percentage of respondents who said home prices will go up in the next 12 months decreased from 47% to 44%.

Home prices in DFW have not adjusted meaningfully due to the following
reason.

1. Increase in rates – Existing homeowners who list their homes will have to buy homes at much higher prices and rates. This is causing a shortage of inventory.
2. This crisis is not the same as the 2008-2009 financial crisis. The Financial crisis of 2009 was largely attributed to subprime loans. It was caused due the substandard credit policies that were adopted by mortgage lenders. In today’s world getting credit is still difficult. Most mortgages are fixed-rate mortgages locked in at historically low rates. Homeowners are in no mood to take on new mortgages.
3. DFW real estate market is one of the stable and strongest markets. A lot of the demand here was fueled by the migration of people during the pandemic from California, New York, and other states.
4. This migration may not come down but is bound to increase as tech companies look to reduce the workforce in the bay area and other areas more and more people are going to migrate to low-cost locations.
5. In the near future, the most that will occur in the DFW market is that prices may stop going up and may equalize at the current state. Builders are churning less and less inventory and the inventory is still 50% below the pandemic levels according to realtor.com

Markets don’t like uncertainty. The uncertainty on the rate hikes and how far the fed will go is certainly adding to the wait and watch among some buyers and sellers.

Mortgage rates are continually climbing

Prices in DFW are unlikely to take a nosedive in the short term as the demand for homes is still strong in the short term. 

Globitech announces a new manufacturing facility in Sherman

Globitech Semiconductor plans to build a wafer factory in Sherman with an investment of $5B creating 1500 local jobs. The factory is expected to start production in 2025 

Globitech is the second firm to move to Sherman, recently Texas Instrument announced a $30B investment in Sherman to create 3000 jobs and build a 300-nm wafer fab

Master-planned community coming on HWY I-20 and FM 1187

1800 plus acres of master-planned development planned near HWY I20 and FM 1187 in Fort Worth 

Development Highlight  

Parkside Village is a new community bring developed in Royse City off of I-30. The community will have green spaces, a pool, cabana, playground, pond, and fishing pier. It is a master-planned community

There are 2 key builders building at this location  

• Trophy signature homes  
• Meritage Homes.  

If you have any questions about these communities, please contact us  

Here are some links to the virtual tour and floor plans

The Callighan:  https://vmdfwl830-lush.mammothsteps.com 
The Allen:  https://vmdfwl840-elemental.mammothsteps.com 
The Channing:  https://vmdfwl850-crisp.mammothsteps.com 
The McCoy:  https://vmdfwl860-cool.mammothsteps.com 
The Matador:  https://vmdfwl870-sleek.mammothsteps.com 
The Winedale (MODEL):  https://vmdfwl870-sleek.mammothsteps.com