So with rents averaging around $1000 for a two-bedroom apartment in the Metroplex, it is almost cheaper now to buy than rent. Does this have the troops stirred up about home- buying again? Yes…maybe. More agents are telling me how the market for first time homebuyers is picking up in Dallas. I went north to Plano and talked with André Kocher of Keller Williams and Wade Betz of Guardian Mortgage Company about the new, more fiscally conservative homebuyer coming in for loans.
Candy: We’ve seen the good news that home sales continue to rise in our area, the investors are loving Dallas, but who are these new homebuyers? Do they really exist?
André: They do! By and large, they are a more conservative and cautious group. They are interested in buying a home because the historic low rates mean they could own for less than they are renting. However, they want to make sure they don’t get into trouble down the road.
Many of our clients have studied Dave Ramsey and are practicing his tenants. (Editor’s note: Dave is a financial media guru who teaches followers to have a zero tolerance for debt.) They are out of debt or working to get out of debt. They are saving up higher down payments – around 10% for conventional loans – and they are interested in 15-year mortgages. Many are keeping their mortgage payments to 25% or less of their monthly income. (more…)