Mortgage interest rates are currently hovering around 7.25% and some economists are predicting that rates have not yet finished rising. Normally, we would expect this to seriously disrupt the local real estate market. The good news is, Trophy Club as a whole is proving to be quite resilient. Our supply of homes is still very low - only 6 homes are currently active in The Highlands, only 29 in Trophy Club. Prices are stable, and days on market is consistently in the 30-35-day range, on average. There were 55 closings in the past 12 weeks, brisk sales for this time of year. Demand for homes in Trophy Club remains stubbornly strong (a good thing!).
Why is the supply of available homes so low? There is a financial dis-incentive for current homeowners to sell, so fewer homes are going to market. Homeowners with fixed mortgages well below current rates are opting to stay in their homes rather than move to a home with substantially higher monthly payments. Here are some national statistics that help explain why:
| Homeowner Mortgage Rates (2023) | |
| Below 3% | 23% |
| Below 4% | 62% |
| Below 5% | 82% |
| Below 6% | 92% |
Why is the demand for homes strong and rising? One hypothesis is that the return of office workers to the workplace may be propping up demand in our area. According to a recent survey of 200 companies by CBRE. a commercial property firm, more than 65% of office-using firms say their employees are back in the building vs. only 12% in April 2020. This trend varies by category, but 71% of Financial and Professional Services firms, as are prevalent here in the 114 corridor, report being back in the office. Recently, Charles Schwab announced that it would require employees to be back in the office beginning in January.
What can we expect to happen this Fall? Typically, after a back-to-school lull during the midsummer months of July and August, home sales pick up momentum in the Fall. Every indication we have today is that this will hold true again in 2023. The people we have talked to who were initially shocked at the rise in interest rates seem to be coming to terms with a buy-now, refinance-later approach. If you are considering a move, give Kristin a call. She'll work with you every step of the way, including providing complimentary design and staging services to ensure your home stands out from the competition.
Call for a fee consultation (817)542-8772.
