Are you a first time homebuyer and have questions about the rising home values in the Dallas Fort Worth area?  You are not alone!  Questions keep pouring in from around the metroplex asking how long will this rise go on.  Here are 3 key areas to consider.

Interest Rates – Rates have been at an historic low for the past 8-10 years. Everything in the market is indicting that interest rates will go up.  While interest rates increase, they still remain below the average of the last 32 years.  Even with the slight increase over the last 12 months, rates are still in a great position.  Increasing rates will have a slight impact on home purchases but not have an impact on home values.

Home Values – Rising home values will increase the net worth of the home owner.  While contributing to 401K, and paying down debt, i.e. your mortgage, your home is still appreciating.  This is helping you achieve long term goals.  Even with the recent increases the market is indicating that in the next 12-18 months, homes values will increase another 5-6%.  In certain markets, DFW we are predicting a 30-31% increase in home values by 2020.

Mortgage Products impacting home values.  Mortgage products many years ago were 100% financing and little documentation needed.  That has changed!  Mortgage products are requiring people to put money down and actually qualify for the mortgage.  Products have been designed for first time homebuyers rather than people trying to get into rental markets.  All of this indicates that people purchasing homes today are much more sophisticated and qualified borrowers.

The market today of increasing values is much different than the previous market.  While we don’t anticipate home values increasing forever, we won’t see a significant decrease of value in the future either.

Feel free to contact me with any additional questions you might have.