The real estate market in Dallas is being anticipated to witness some changes in 2013. The house prices may again increase across the state of Texas and this will definitely affect the Dallas real estate market. Market experts are also expecting changes in the mortgage sector. The real estate market prices of Dallas were a stable gainer in the previous years. The increase in value was almost 9% to 10%. This steady rise in housing prices is expected to continue even in this new year.
The increasing demand and the changing economic condition are reigning over the state at this time and this according to experts is the key reason behind this price hike. The Dallas-area enlargement may also get a bit of higher. All these events may leave an impact on mortgage market too. The opportunities of mortgage modification may get adjusted.
The rise in interest rates may slow down the mortgage business. The refinance activity may also get the hit. Records show that the local house inventory levels are very low since 2000. This inclination may continue in 2013 also as the price range in the north Texas could grow more. According to the eminent economist Dr. James Gaines, if the inventory shows no sign of improvement, then the price hike may touch unbelievable heights. So, definitely this may turn out to be the most profitable time for them who desire to sell their houses.
If the supply of homes remains tight in the market, then the price may rise even higher. Quite obviously, this will affect the mortgage market too. The mortgage rates are also anticipated to maintain a low key during the first half of 2013. As reported by Freddie Mac, the second half of this year may see slight increase in the rates. The increase will not be that much effective though.
There is still hope according to market analysts. Continued construction works, the growth in home value and increased home sales may herald some changes in the mortgage market. The housing prices are expected to grow up by 3% and consequently the property values will be strengthened. With the increase of households, the statistic is also expected to be modified to 1.25 million.
As per the real estate agents, the one reason for which the potential home sellers of North Texas including Dallas may prepare to take the initial step is the availability of little properties. According to the investors the laws of supply and demand may be applied here, but many experts even deny this. Chuck Dannis, the famous Dallas real estate appraiser claims that these issues are directly influenced by inflation, rather than the laws of supply and demand.
According to Dannis, home appraisers may not like to sign off on huge increase of price unless it’s supported with dependable data from the closed home sales. Well, lenders are very much conservative about the appraisals and this may leave some impact. The increased home prices can be cushioned by considerably low mortgage rates. Mortgage modification will also be affected due to lower mortgage rates.
The real estate market trends are changeable and the trends that are experienced today can be changed any moment in near future. This is just the beginning of 2013 and a lot of facts are yet to be covered. There are full chances of various changes in the real estate and mortgage market in next few months. When mortgage interest rates are not expected to jump up more than 6%, there is still a chance of recovery. So, it’s better to keep a vigilant check on the fast changing trends and consider investment accordingly.
Rikk is a Community Member of mortgagefit.com and has been contributing his suggestions to the Community since 2011. He has also made notable contributions through various articles written on different subjects related to the mortgage