I was going to title the main newsletter ‘The Quick & The Homeless’, but that would have probably been misinterpreted by someone in this day-and-age. The point would obviously be to illustrate how fast the market currently is; until inventory starts to climb it’s going to remain this way. Given the mass immigration to the DFW area, the only things I can imagine will cause this is a spike in interest rates or hyperinflation. We’re in no danger of the former, but the later is starting to be discussed. This is anecdotal, but our usual Monday sushi meal spiked from $36-42 over the course of the last week. There was a time when it was in the upper $20s for the same meal… but I digress.
We are back to a market tempo similar to 2014, a time when I’d see a house come online at 8am, I’d take my clients for a tour at lunch, and immediately after they’d need to decide whether or not to make a play for it. It’s a market where a buyers moral victory is getting the house, especially when there is a backup offer in place that takes away your leverage as a buyer.
“But John, you bold yet oblivious savant”, I hear you ask, “Surely this can’t last for long and eventually the real estate market will come crashing back to Earth.” Well, dear reader, don’t expect anything to change for at least the next 2 years. There are simply too many people, too many jobs, too low interest rates, and too few homes to go around. The cost of building has skyrocketed due to a shortage of materials and labor, and builders are backed up a full two years from demand.
Spring is officially upon us, and I know that means for you what it does for me: Disc Golf. Thanks to the Covid lockdown, disc golf participation has more than doubled in the last 12 months, and although I’m sure the numbers will subside now that the economy has opened back up, many people like me are irretrievably hooked. If anyone ever wants a good excuse to spend 2 hours in the great outdoors, throwing discs at a big basket, give me a call. I’m just good enough to give some advice.