When scrolling through news feeds, you may mentions of dark skies hanging over the housing market with rising rates and high property prices. But the long-term outlook suggests rays of sunshine in a U.S. market that is remarkably solid.

Homeowners Are Sitting on Historic Equity

Over the past two decades, there has been a significant shift in U.S. homeowner stability. According to the Federal Reserve, today's homeowners have amassed a combined $35 trillion in home equity and are sitting on worth that’s more than double the mortgage debt they hold.

That wasn't the case in 2008 when home equity and mortgage debt were roughly equal.

Today’s equity is building at a considerable rate. According to the National Association of Realtors, a typical U.S. homeowner who bought a median-priced home five years ago has accumulated about $100,000 in home equity due to price appreciation. After ten years of homeownership, that wealth accumulation jumps to over $200,000.

Texas Ranks Well for Untapped Equity

The latest ATTOM U.S. Home Equity & Underwater Report found that 42.5% of Texas homeowners with mortgages are currently equity-rich, meaning they owe less than half of their home's estimated market value.

DFW Prices Are Steady and Negotiable

According to Realtor.com, the median year-over-year list price for homes in the DFW area held flat at $439,990.

This isn't true for many housing markets across the country. Home prices in Chicago rose 6.9% year-over-year. New York City and Cleveland saw increases of 4.2% and 3.1%, respectively, while home prices in San Francisco rose 2.2% over the past year.

In the DFW area, sellers are increasingly willing to negotiate. Over the past year, an average of 26.8% of active listings featured a price reduction, outpacing the national average of 18.8%.

Mortgage Rates Are Stable

While we probably won't see a return to historically low rates of a few years ago, today's rates are reasonable and steady – a sign of a healthy housing market. According to the latest Freddie Mac Primary Mortgage Market Survey, benchmark 30-year fixed mortgage rates have leveled off, providing predictability for borrowers planning for the long term.

With DFW home prices holding flat, sellers offering price reductions, and rates staying steady, now is a good time to buy a home. To discuss the best financing options, contact a member of the Decker Group at (214) 908-6792 or connect with us online.