Record low-interest rates and people relocating to North Texas are adding fuel to an already hot housing market.
For years, we've known how fast the North Texas housing market moves.
But right now, McKinney realtor Jared Tye says the pace is mind-blowing.
“It’s wild. There’s a lot more buyers right now than there are homes for sale,” Tye said.
Homes barely hit the market, he said, before dozens of offers are made, some $50,000 or more above the asking price.
Get top local stories in DFW delivered to you every morning. Sign up for NBC DFW's News Headlines newsletter.
“There are a ton of bidding wars going on,” Tye said.
Among the reasons for the rush: People are relocating from other states, stimulus payments are helping make down payments, and record low-interest rates beginning to creep up.
Local
The latest news from around North Texas.
“A client says I'm paying higher than I would have for the house but my mortgage rate is so low that the actual payment may be comparable to what they would have paid two years ago before the price went up,” Tye explained.
Despite his warnings, Tye said some buyers are willing to take big risks to snag their dream home like waiving option periods.
“Even if they get an inspection and they find something bad, they're still going to be committed,” he said.
An S&P CoreLogic Case-Shiller Index released this week shows home prices in the Dallas metro area jumped 9.2% in a year's time.
Homes are so expensive that buyers who may need to move again in a couple of years are being urged to really consider whether now is the right time to buy.
“That could be a little risky because if the market drops a little bit they could be in a position where it’s hard to sell a year from now,” Tye said, adding he’s cautioning buyers against purchasing at irrationally high prices.
