Investors often tout real estate as one of the most lucrative long-term investments, and this assertion holds true when examining trends in Rockwall County. From January 2020 to January 2024, the median market sales price for homes in Rockwall County and its five cities experienced a notable surge. For instance, if you had purchased a home in Rockwall in January 2020 for the median sales price of $323,000, its market value today would likely stand just over $500,000. This represents a substantial net increase in equity, approaching $50,000 a year.
As we transition into the spring of 2024, with an anticipated increase in housing inventory, the market dynamics are poised to intensify. The influx of first-time home buyers and newcomers to the area contributes to a highly competitive landscape, often resulting in multiple offers and further driving up prices. The solution is clear: take action now.
Believe it or not, the first step towards homeownership is not talking to a REALTOR®, but is consulting with a lender. Through a brief telephone conversation, lenders can assess your financial situation by inquiring about your income, monthly expenses (evaluating your debt-to-income ratio), and pulling your credit score. This initial consultation serves to determine your affordability, identify any inaccuracies in your credit report, and provide an estimate of the home price range within your means.
If your dream home may seem financially out of reach initially, compromises may be necessary. For instance, you might consider purchasing an older home in need of updates, such as one listed in Rockwall at $215,000. However, it’s crucial to ensure that the property meets the lender’s criteria for structural integrity, with a solid roof and foundation, to qualify for a loan. Alternatively, you may opt for a newer home located farther away, necessitating a longer commute.
Reflecting on personal experiences, many individuals, like myself, embarked on their homeownership journey with sacrifices. For example, my wife and I purchased our first home in 1975 in The Colony for $29,900. Despite facing a daily commute to Dallas for work, we valued the opportunity to own a new home.
Similarly, prospective homeowners today may find themselves considering areas like Royse City (only 32 miles from downtown Dallas), where 65 new builds are currently available, starting at $254,990. While this price point exceeds what we paid decades ago, the prospect of securing a lower interest rate provides a promising advantage.
Ultimately, the key takeaway is to overcome procrastination and take proactive steps towards homeownership. Most real estate agents have established relationships with lenders and are readily available to provide referrals and guidance throughout the process. By seizing opportunities in the housing market, you can embark on the journey towards achieving your homeownership goals.
Jerry Welch, Realtor
Jerry Welch is a full-time, professional REALTOR® with over 17 years in real estate and specializes in helping seniors transition. He holds an SRES (Senior Real Estate Specialist) designation, which reflects his extensive education on topics such as tax laws, probate, estate planning, and equity conversion strategies. He offers relevant information on current market trends as well as being a valuable resource regarding real estate transactions. He was one of the founding members and is a past chair of the Rockwall Chamber SSA (Senior Services Alliance) Program. (972) 800 3915
