Texas is seeing an increase in home sales as buyers who strategically waited out last year's rise in mortgage rates are now pulling the trigger and purchasing new homes.
This trend will continue throughout 2024, with Dallas-Fort Worth reportedly recording the second-highest home sales growth in the nation in January. dallas express. As of January, home sales across DFW were up 14.2% year-over-year, increasing from 4,560 units in January 2023 to 5,208 units in January 2024, according to the RE/MAX National Housing Report.
The median sales price for homes in Dallas in February 2024 was $212,000, nearly $70,000 lower than in February 2023. With sales prices in the city down by nearly a quarter, the housing market appears to favor buyers over sellers.
Despite the continued decline, home prices in Texas remain significantly higher than they were before the pandemic. Home prices in Dallas remain 44% higher than they were before the coronavirus lockdown, according to an Axios report.
Katy Song, Chief Financial Planner at Domain Money, shared her top tips for first-time homebuyers in an interview with Axios.
Her first tip is to check their credentials. Taking an honest look at how your credit score stands is very important as it will determine if it is really the right time to apply for a mortgage.
As Song explained, individuals with bad or no credit should focus on building their credit score. This may include charging a subscription fee to your credit card to build your score before you commit to buying a home. It's also beneficial to pay off any credit card debt before applying for a mortgage.
Song also suggests that first-time homebuyers calculate the maximum monthly payment they can make. She recommends aiming for her 28% to 32% of monthly net cash flow as a safety net. Lenders are likely to approve a higher mortgage than a buyer can afford, but they don't take into account monthly expenses such as medical bills and subscriptions.
Finally, Song encourages first-time homebuyers to save up for a down payment. Recommendations vary by home, but a general guideline is to save at least 10-20% to keep your monthly payments comfortable and start building equity as quickly as possible.
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