Each Friday, Robbie Briggs, CEO of Briggs Freeman Sotheby’s International Realty, writes about luxury, trends, business and more in the advertising pages of the Mansion section of The Wall Street Journal. Below is his letter of July 15, 2022.
FROM MY PERSPECTIVE
“Don’t worry. A crash isn’t coming.”
A senior economist said that in May about the housing market — and I agree. Yes, after two years of soaring sales, we are starting to see signs of moderation ahead, but that’s an OK thing. According to the major news outlets analyzing housing from a national perspective, bidding wars are waning and a cooling-off is on the horizon. Nevertheless, our own markets here in North Texas — while not immune to the economic factors influencing real estate nationally — continue to experience heightened activity.
Bottom line: Texas has a strong economy and more to offer than ever — and lots of people continue to move here to take advantage of it all.
The nation’s economy has certainly become more turbulent with the fluctuating stock market. The level of inflation not seen in four decades remains a critical concern, and interest rates are rising in response. But, as I write this, the rate for a 30-year fixed mortgage has dropped to 5.3 percent, after peaking at 5.81 percent in mid-June. That rate is up from 3.11 percent on January 1 of this year, but it’s important to remember that the rate at the start of the 2000s was around 8 percent, and the average from 2000 to 2021 is 5.14 percent. (Does anyone remember when we saw almost 17 percent in the 1980s?)
There is more positive news in North Texas. According to the Texas Real Estate Research Center at Texas A&M University, the median price in the Dallas-Fort Worth-Arlington metro area increased by approximately 21.5 percent year-over-year, from $311,000 to $376,500. (That metro area price exceeds the statewide median price, by the way.) In the first quarter of this year, the total sales volume increased by approximately 0.5 percent year-over-year.
We’ve analyzed all of this for you in our latest Market Moves report. It’s all yours at briggsfreeman.com/market-moves. There is a cooling-off coming, and you’ll need to know what that means to you. Guess who your best source of advice is, now and always: Your Briggs Freeman Sotheby’s International Realty agent. No one has the information and instincts to put it all in perspective — in markets hot and cool.
Robbie Briggs
CEO
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