There might be more housing inventory available, but mortgage rates are holding back buyers
PLANO, Texas (CBSDFW.COM) - New numbers reveal just how much the DFW housing market is slowing down.
Last year, there was less than a week's worth of available homes for sale, now there's more than two months of inventory.
What happened during an open house in Plano over the weekend is something North Texas real estate agents said they haven't seen in years.
"Under $500,000 in Plano with a pool is a great buy," veteran Collin County real estate agent Kimberly Woodard said. "A year ago, it would have been gone the same day."
Selling a house like this used to be a piece of cake for Woodard.
Woodard said this well cared for home in West Plano for sale at a bargain price went through a busy open house weekend still unsold.
"We had over 30 groups through, I mean it was a non-stop activity," Woodard said. "Would have thought there would be an offer on it. And we don't."
With interest rates on home mortgages approaching 6%, buyers are having to slash prices while sellers are becoming squeamish.
But Woodard and others in the industry said there are ways around high interest rates.
G.P. Theriot is a mortgage advisor who says a seller now faced with lowering their home price significantly can instead reduce it only a little and use a small portion of the sale revenue to help the buyer get a lower interest rate through what's called buying down points.
"They can still net a good portion of what they want to and at the same time the buyer now can have a lower payment because the seller is willing to pay down and buy their rate down," Theriot said. "I think even with the higher interest rate, remember you're marrying the house, not your financing."
North Texas remains one of the fastest growing regions in the nation which real estate agents say should sustain the housing market during this slowdown.
