DFW’s luxury market saw a significant surge in 2021 with the sale of ten homes at $10-plus million each. That’s nearly a 67 percent increase from 2020 according to a new report from residential real estate brokerage Compass.
What’s driving the surge? Low interest rates, strong demand, young affluent buyers moving to the area, and tight inventories are all factors contributing to the hot luxury market, with no end in sight. Expect to see high appreciation to continue in DFW.
Not quite in the $10 million market, but looking for a luxury home? If you’ve set your sights on a dream house with a price tag you thought was out of reach for a conventional loan, there is good news. In 2022, the Federal Housing Finance Agency (FHFA) raised the conventional loan limit for a single-family home from $548,250 to $647,200 – which is nearly $100,000 more than the 2021 cap. The adjustment comes after house prices increased 18.05 percent on average between the third quarters of 2020 and 2021.
This increased cap gives buyers more buying power. Now, instead of a jumbo mortgage – which would have been required when purchasing a home for up to $647,200 – buyers can now seek a conventional mortgage.