Residential

Slump in Dallas luxury-home sales an early signal of turn to buyer’s market

I had to have one of the most difficult discussions a Realtor can have with his seller client last week. The conversation about reducing the price of their home and the discussion about the market leveling off and potentially dropping soon. I knew a turn in Dallas real estate was coming, but no seller wants to hear it. Some of the telltale signs were the emails at the end of September and the beginning of October from builders offering 5% commission if one of our buyers purchased their new builds. Normally it is 3%, or 4% if they are getting desperate.

You can see that builders are just now accepting the news that the market has topped off and there is nowhere to go except for a flat line. It is apparent that last summer was the best market we had seen in a long, long time. For the past 6 months the excuse was, “The election is causing everyone to wait on their home purchase.” And that is certainly the truth. No one wants to purchase or sell around one of the most influential elections of the century. Everyone has subconsciously associated the last new president taking office with this election. Remember what happened in 2008.

Read Article at MarketWatch.com

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