Texas is hot — and not just its climate. Dallas-Fort Worth is the fastest-growing metro area in the country, and it’s easy to see why.
Job opportunities, affordable cost of living, and great schools are just a few reasons people are clamoring to move to the Lone Star State. The state’s walkable cities and its weather, foodie hubs, and vast recreational and cultural opportunities are icing on the cake.
If you’re looking to buy a new home in DFW, but have been taking the “wait and see” approach hoping for lower interest rates and dropping housing prices, you may miss out, real estate experts warn. We’ll bust some of the myths around today’s housing market — and show you why now may be the best time to find that special place to call your own.
Myth: Housing prices will go down if I just wait.
Housing prices in DFW are among the fastest-growing in the nation (with median prices up 21.4% over July of last year), and experts predict that North Texas prices are unlikely to dip over the next five years. In fact, nationwide housing prices are expected to remain steady, especially in sought-after markets like DFW.
After a major shortage that influenced rising prices, housing inventory is finally growing with Dallas-Fort Worth listings up 25% from last year. Normandy Homes is doing its part in easing the housing shortage by building new homes in some of the area’s most desirable communities like Frisco, McKinney, Prosper, and Celina.
If you currently own your home, now is a great time to move up! Take advantage of the equity you’ve earned by selling now and moving into a home suited for your next phase of life. Growing families are looking for more square footage, amenity-filled neighborhoods, and quality school districts. Putting down roots in North Texas means creating a well-rounded quality of life in a stable market.
Myth: Interest rates are too high.
While borrowers are missing the historically low mortgage rates of 2021 (which fell just under 3%), a long-term overview helps paint the bigger picture. Twenty years ago, 30-year fixed interest rates hovered between 6%-7%. Today’s rates, around 5.5%, are still relatively low. If you’re waiting for bottom-dollar rates, you could potentially miss out on cashing in on your current home’s equity and moving to a house and neighborhood more suited to your family’s needs. If you really need that lower interest rate, consider a rate buy down and/or rate lock program. And remember that you can always refinance later.
Myth: If I buy now, my home’s value will drop when the housing bubble bursts.
Remembering 2008, homebuyers are understandably nervous about another plunge in home values. But important differences exist between today’s housing market and that of the mid-2000s. First, inventory was high two decades ago and loosening regulations meant loans were approved for those who were unable to qualify in the past. Adjustable rates started increasing, causing millions of homes to go into foreclosure.
However, today’s housing market is remarkably different, with caps on adjustable rate increases and less home inventory. Right now, a big undersupply of homes exists with only a two-month supply of homes available. A six-month supply is a sign of a healthy market, leaving plenty of runway for new homes. The rate of rising home prices has slowed, but a “bubble burst” is not likely.
“As I’m seeing prices adjust already in response to higher rates, higher inflation and new supply, it tells me the market actually seems to be moving toward normalization without a bubble-like bursting,” George Ratiu, a senior economist for Realtor.com, told Money.com.
For Texans, it’s an even better long-term outlook. CNBC named Texas number four on the country’s most stable housing markets, citing the state’s rapid population growth and steady economic opportunities.
Don’t Wait to Find Your Dream Home
Now is a great time to take advantage of your current home’s equity and sell, then invest in a neighborhood you love. Learn more about Normandy’s up-and-coming neighborhoods in North Texas and start building the life you want today.
- Consider the resort-style pool, walking trails, and tree-lined streets of Bretton Woods, conveniently located in Frisco. These “forever homes” offer plenty of space with oversized lots and room to install your perfect outdoor pool and oasis. Get more room for your kids, weekend guests, and intergenerational living if caring for aging parents.
- If you love nature, check out the highly anticipated master-planned Painted Tree neighborhood in McKinney. Discover winding trails, playgrounds, 200 acres of open spaces, and the well-stocked Painted Tree Lake.
- Want a Caribbean-inspired beachfront? Check out The Lagoon in Prosper’s Windsong Ranch, plus the community’s on-site lifestyle program with social programs and fitness classes.
- Find great final close-out opportunities in some of Normandy’s hottest-selling communities at Estates at Shaddock Park in Frisco (Frisco schools) and South Haven (Coppell schools) in Irving. Both offer award-winning schools and family-friendly living.