Economic shifts, reality TV and the pandemic fueled a lot of upheaval in the U.S. real estate markets. Not only did home values soar but pent up savings, higher equity and consumer demand among new DFW homeowners forced to stay home merged to fuel a home-improvement boom.
And not only did they spend — Hearth reports an 82% increase in home repair activity — they also dialed in to sources like HGTV, learning more about the possibilities of home improvement, real estate investing (and flipping) and the notion of becoming landlords. With increased home values, typical owners also realized higher equity in their homes.
According to CNBC, Just over 15 million residential properties were considered equity-rich in the second quarter, meaning mortgages on those properties was 50% or less than the value of the home, according to ATTOM Data Solutions.
“Homeowners saw their equity rise far and wide throughout the United States during the second quarter of this year in yet another sign of the housing market punching back against the Coronavirus pandemic,” said Todd Teta, chief product officer with ATTOM. “More property owners rose into equity-rich territory and escaped the seriously underwater lane, putting more money into the average household.”
As Covid quiets, is this the end of a trend?
Experts are predicting a slowdown in the activity, as materials costs have soared, stay-at-home mandates have vanished and now, owners have faced the shock of markedly increased property taxes, especially in Dallas and Tarrant counties. Rates which loom even larger when a DFW homeowner exemption is removed for a rental property.
And now, for many DFW homeowners the TV dreams are over — it’s getting real out there. Increased material costs mean even projects in process are going over budget. Attention spans are back to pre pandemic distraction levels so projects are stalling. And, the realities of being a landlord (more repairs, tenant issues) are swaying decisions to back away from the trend.
What we’re seeing and the remedies for owners
At WelcomeHome (your most-trusted DFW home buyers), we are seeing the volume of calls increase as owners look for a way out in the Dallas-Fort Worth market. Our company process negates the need for owners to make additional repairs to prepare houses for sale before we make a fair market value offer. Also, our ability to close in 10 days or less with no closing costs or financing distractions means the burden can be lifted in days not months. Welcome Home also guarantees a $5,000 earnest money check on contract providing sellers with the assurance our contracts are solid and streamlined to bring a fair outcome with no gimmicks or tricky financing. That’s uniqueDFW homeowners looking to sell, and it’s been part of our 25-year history.
“We are actively working with DFW homeowners including rental owners, people who have inherited property and actively buying as-is houses,” says David Metts of Welcome Home. “And regardless of increased values, with our experience as DFW home buyers, we continue to operate on a cash basis and get deals done fairly and quickly. One phone call or visit to our website can get your contract done in 45 minutes and you house sold in less than a week.”
If you have additional questions you can submit an inquiry via the form on our Home page, or visit our FAQs page for answers.
