Dallas – Fort Worth housing market: sales are down, inventory on the market keeps climbing, rising prices slow down
Dallas – Fort Worth, Texas – Fort Worth In Dallas-Fort Worth, home sales continue to decline, inventory on the market continues to increase, and home prices are rising at a slower rate.
According to the most recent Re/Max National Home Report, the active housing inventory in the DFW market is up 94% over the previous year, but sales are down 13.7%. In August, 9,182 homes were sold throughout DFW, compared to 10,635 residences in August 2021.
The average DFW home sells in 30 days, a 55% increase from last year’s average of 23 days on the market.
August’s typical house sale price in DFW was $405,000, which is 14.1% higher than the same time last year but 2.2% lower than July. In North Texas, the median sale price was $354,949 at this time last year.
According to a second research, Texas real estate brokers are the most doubtful that their markets will continue to acquire inventory in the future. Local agents estimate buyers in Texas will have only 19% more homes to choose from by the end of the year, while agents in the other popular Sunbelt state of Florida estimate buyers will see 30% more inventory by the end of the year, according to a HomeLight survey of more than 1,000 top real estate agents in the country.
Despite the fact that sellers continue to have a strong position in the DFW market and the majority of the United States, agents observe numerous signals of transition. Over the past two years, more than 90 percent of U.S. real estate agents continuously reported a seller’s market in their region. In a recent survey by HomeLight, however, only 51% of agents described their local market as a seller’s market. Prior to three months, this percentage was 95%.
DFW home inventory availability exceeds two months at present.
In DFW, a shift is occurring, but it is not a buyer’s market, according to Kelly Boulton, a HomeLight Elite Agent featured in the paper.
“I am observing more inventory,” remarked Boulton. “Compared to January 2022, when North Texas had an inventory supply of two weeks, we now have an inventory supply of over two months. I am observing reduced prices and fewer buyers. However, I observe many offers on homes priced below $400,000 in certain markets.”
The optimal supply of properties on the market is six months.
Michael Coburn, broker/owner of Re/Max Town & Country in Allen, Texas, stated that many DFW sellers have been hesitant to react to the new pricing reality as the market evolves.
He stated, “We are still seeing a large number of house sellers who believe they can continue to price their homes too high for today’s shifting market and that purchasers are still prepared to pay above fair market value, which is simply not true.” “There are still many purchasers on the market looking for residences, but with higher borrowing rates and a larger supply, they are searching for more reasonably priced properties. “Sellers are soon realizing that selling a home correctly in today’s market is considerably more difficult than they anticipated.”
Will interest rates increase or decrease?
Coburn noted that potential homebuyers who now have a mortgage with an interest rate of 3% or less are far less likely to put their home on the market and purchase another home with an interest rate that is double or higher than their existing rate. The good news is that purchasers entering the market have more options, and if interest rates fall, they can always refinance, he said.
In this market, the best piece of advice for purchasers is to “marry the house and date the rate,” according to Randy Key of Churchill Mortgage in Dallas.
In an interview with the Dallas Business Journal, Key stated, “Historically, interest rates rise and fall, and we’re currently in a time of rising rates.” “We inform many of our clients that this may be the best rate we see over the next decade. It may also be the greatest rate we’ve seen, and it may decline by a point or a half the next year.”
Key stated, “You are not married to that interest rate.” If interest rates drop to a point where refinancing makes sense, you just remortgage.
How the North Texas housing market compares to the national average
Last month, house sellers throughout the nation, on average, accepted bids below their asking prices, according to Re/Max. This is another evidence of the housing market’s rebalancing. In August, the average close-to-list price ratio across the report’s 51 metro regions was 99%, indicating that residences sold for 1% less than the asking amount. This is a decrease from 101% in July.
August’s average close-to-list price ratio in DFW was identical to the national average of 99.9%. This is a decrease from 101% in July and 102% a year ago.