We’ve been hearing so much lately about rising interest rates … though a decision on increasing the rate hasn’t happened so far.
But, given the strength of the DFW real estate market, we wondered how much an interest rate increase might affect the region. Here’s what our expert agents at Briggs Freeman Sotheby’s International Realty had to say.
Q: How might rising interest rates affect the real estate market in North Texas?
A: If an interest rate increase does happen this year, I don’t think it is going to have a significant impact on our market. With a lack of inventory of homes for sale an ongoing concern across the region, we will continue to have eager buyers looking for a place to live. Home prices in Dallas-Fort Worth have grown at a steady pace – no skyrocketing – so a rate increase of a half-point or a point won’t slow down the market.
Today’s investment opportunity: 6014 Azalea Lane | Listed for $1,479,000
A: The Dallas-Fort Worth market has strong employment and affordability – two factors that are much more important than interest rates in our area right now. As long as our economy continues to grow, home sales should rise at a steady, and healthy, pace. North Texas is still a focal point for business, and we expect to see more corporate relocation announcements this year. An interest rate increase should not rock the real estate market here.
Today’s investment opportunity: 3815 Bellaire Circle | Listed for $1,199,000
A: A lower interest rate almost always means a buyer can get more home for the money – so, even if the interest rates go up only slightly, it can change a buyer’s budget and limit a home search. Though the Fed seems to have backed off of a June increase, it looks like an interest rate hike is coming in the near future. It makes sense to decide on a new home now, before those rates go up.
Today’s investment opportunity: 8626 Lakemont Drive | Listed for $2,445,000
A: Interest rates are still considered to be near historically low levels – and even a half-point increase, if and when it happens, will keep rates very low. In the Dallas-Fort Worth market, where we continue to grow on a steady and healthy trajectory, keeping an eye on economic indicators such as employment figures is more important. Our local economy is extremely solid, with an outlook for continued positive growth. Real estate is a stable investment.
Learn more about living in DFW. Visit the Best Neighborhoods Site in DFW.
For more luxury homes throughout the Metroplex, see briggsfreeman.com. Click here to see the latest in real estate news. President and CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby’s International Realty with seven offices in Dallas, Fort Worth, Uptown, Lakewood, Ranch and Land, The Ballpark and Southlake.