Goodbye 2022 - Hello 2023

Good-bye 2022👋

Did you know?

*The 30-year fixed-rate mortgage averaged 6.27% as of December 22, according to data released by Freddie Mac on Thursday. That’s down 4 basis points from the previous week — one basis point is equal to one-hundredth of a percentage point. Rates have dropped for the sixth week in a row. Rates were last at this level in mid-September. Last week, the 30-year was at 6.31%. Last year, the 30-year was averaging at 3.05%. (CNBC)

*5 good financial news in 2022? Yup...

1. Savers are earning more with higher interest rates.
2. Those contributing to their retirement accounts are buying in at lower levels
3. For home buyers, some prices have come down. And rent jumps seem to be cooling in areas too.
4. The 3 major credit reporting bureaus — Equifax, Experian, and TransUnion — dropped fully-paid medical debts from credit reports. Consumers will also get 12 months (up from 6 months) before unpaid medical debt shows up on their credit report. Starting in 2023, credit reports won’t include unpaid medical debt that’s less than $500.
5. 49 jurisdictions (two states and 47 cities and counties) will meet or exceed a $15 minimum wage for some or all employers by year's end. While this has fueled labor costs, we should not forget that employees who are paid too little to survive seek government assistance.....that we have to pay for too!

* Newly built homes grew to represent an increasing share of homes for sale in the U.S. this year up to a record high of 29% of single-family listings during the third quarter of the year. In November, 36% of builders offered price reductions and 59% offered other incentives to buyers, which is relatively high and has been increasing since July, according to the NAHB. However, this is below the peak of 59% of builders offering price reductions in October 2007, as the housing market began to shift.(Mansion)

Interesting to know...

* The number of Las Vegas home sales dropped 51.8% in November compared to the same month a year ago. Las Vegas was one of the real estate boom markets recently as people left large cities in the West to find less expensive cities that might also have lower costs of living.

* The number of homes sold dropped by 49.9% in Salt Lake City, 49.8% in Stockton, and 48.7% in Oxnard, CA (-48.7%). San Jose, which is the most expensive city in the US based on median home value also saw a drop of just over 50%.....with much higher prices though, the DOLLAR volume may not read as poorly.

Good to know...

* Homes lose most of their heat via cracks (38%), walls (17%), basements (21%), ceilings (5%), leaky low insulted windows (16%) and doors(3%).

* In a recent survey 51% of respondents said they love a kitchen island and consider it essential.

Hello 2023 🥳

What to know...

The market for sellers has cooled to its slowest point since the pandemic began in 2020, but that doesn't make it great for buyers. The rapid change in interest rates has caused buyers and lenders to use caution.  Federal Reserve chairman Jerome Powell confirmed Wednesday that there will likely be more interest rate increases this month, but the rate hikes are expected to be smaller than the 75-basis point rate hikes seen earlier this year.

However, these conditions don't actually favor buyers or sellers right now.  Experts predict residential real estate prices to fall, but not by much in the Dallas-Fort Worth area over the next year. Experts say although we are seeing lower prices, they will be minor, because Dallas did not get as “out of hand” as places like Austin, or other cities across the country, plus there is still stronger economic growth ahead and employment is growing, with job creation and relocation in most fields still on the rise." 

All the above actually spells hope for sellers and buyers. In Dallas-Ft Worth, residential real estate holds its value. Current interest rates impact on mortgage payments should be offset somewhat by lower prices and more selection. Plus with interest rates expected to drop within the next 3 years, refinancing in 2026 might prove to be the economic salve to mortgage holders.

Sellers who have owned their property for at least 18 months or longer, in the Dallas – Ft Worth area, are still positioned to enjoy a nice profit, even if at slightly lower prices than 3 months ago.

The Dallas-Ft Worth market looks like a potential WIN-WIN for buyers and sellers in the first half of 2023!  So, let’s get a deal going today!! 🤗