I saved writing this towards the end of the month because I had a few economic summits to attend before my monthly prognostication.
The dreaded R-word is on everyone’s minds. The economy is being stimied by spiraling interest rates. Around the corner is job losses and possibly a further stock market correction. Although we have a period of relative discomfort ahead, this will be nothing like 2009. The government printed trillions of dollars and paid people to stay at home, causing too much money chasing too few goods. Sprinkle on that terrible monetary policy over the last few years, and we have the worst inflation in 40 years. Once inflation is tamped down, interest rates will settle again, probably 4.5-5.5% by this time next year.
Despite interest rates being so high, it is now a fantastic time to buy a home. “But John, you wise yet immature savant,” I hear you say, “how is it a good time to buy with interest rates where they are?”. First of all, dear reader, interest rates will go down and we’ll see another refi boom. Secondly, the market is no longer seeing multiple offers going 10% over list price. Sellers are willing to negotiate. If you find that perfect house, now is the time to get it before rates drop and the frenzy begins again. Also, look for builders to cut great deals through the rest of the year.
As I’ve said before, do not look for a “market adjustment”. More people moved to Dallas this year than any other metropolitan area, and balancing the number of buyers with active listings is going to take years. I’m not saying prices are where they were in June, but we’re still 10% up than we were in January.
Another reminder the 6th Annual John Angell Real Estate Group Pumpkin Carving Competition is this month. Email me a pic of your pumpkin. It will be judged on the total quality of the image (background, lighting, angle, creativity and intricacy of the pumpking carving). Judging takes place on Halloween night Monday, October 31st at 6pm.
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