My Thoughts On The Future of Real Estate
I wanted to share some information from DallasNews Business. As you can see by the chart below, home prices in D/FW have increased by 11% over the last year. That means if you were looking 1 year ago for a $150,000 home, that same home will now cost you $166,500. If this trend continues, not only will the cost of buying a house increase but so will your interest rate. With the nation’s debt where it stands and with all the money our nation is printing, it’s naïve to think that inflation will not be substantial over the next few years.
North Texas sees record home sales numbers, prices in May
All this is to say, I believe most people will never be able to save at the rate of the price increase and the interest increase which seem to be inevitable. I know it is hard to find the perfect house right now with all the multiple bid situations. Many buyers have gotten frustrated and have decided to continue to rent. I believe that this is the biggest mistake you can make at this time. My hope is that none of my clients make the mistake I did when I was young. I put off buying a house when interest rates were low and home prices were low as well. I was doing a lot of traveling, and home prices and interest rates increased to the point that I was unable to buy for many years. Yes; I am that old! This was during the Carter Administration and home prices not only sky rocketed, but we had double digit inflation, too. I thought I got a real bargain when I finally did buy because I got 7% plus, while many paid 12% plus.
Take advantage of the fact that the housing market has still not fully recovered and interest rates are still low!
Bill Mueller is a licensed broker associate and CNE (Certified Negotiation Expert) with Smart Realty in Colleyville, Texas.
Bill has been an established business leader in North Texas, spanning over 2 decades. Accomplishments include ownership of a management placement service, a chain of resumes services, a nation-wide career fair company and a national internet job board. These life experiences and the relationships developed have helped him gain a genuine appreciation and understanding of people, and have been instrumental in the development of his character and integrity.
Bill is a husband and father to 4 married children (3 girls and 1 boy) and the proud grandfather of 8 grandchildren.