The North Texas housing market is downshifting quickly, with Dallas-Fort Worth being the only U.S. market to see a decrease in home sale prices last month, according to a report released today. DFW home prices are down 1.9% year over year in July, according to the latest Re/Max National Housing Report.
And what a difference a month makes. Last month, DFW led the U.S. for home price increases, with June prices up 29.3% over the previous year. In hard numbers, home sales prices in DFW fell to $413,900 in July from $422,000 in July 2021. Homes in DFW spend an average of 23 days on the market before selling.
Higher interest rates and inflation, as well as record home prices, triggered a sharp drop in demand for housing, said Todd Luong, a realtor with Re/Max DFW Associates: "Here at our Re/Max office in Dallas-Fort Worth, our listings are currently getting on average 2.7 showings per week," Luong said. "Last year, at this same time, our listings were earning on average 5.9 showings per week. That is a huge drop in buyer demand compared to the previous year. Record home prices and higher mortgage rates have forced many potential buyers out of the market, especially first-time homebuyers."
While the latest trends may disappoint some sellers, buyers now have more choices and better opportunities for good deals, Luong said. Luong said that the DFW housing market has been challenged with low inventory for years and reached an all-time low earlier this year, with only a two-week supply. Now, however, inventory is increasing. "Although buyers have more choices now, it is still not a balanced market as we only have about a two-month housing supply," Luong said. "In a normal market, you have about a five to six-month supply of housing."
A new report from Zillow also found falling home values, although the numbers didn't match Re/Max's precisely because of different study methods and different geographic definitions of DFW as a metro area, among other reasons. According to Zillow's findings, the Dallas-Fort Worth metro area's typical home value is $396,904, down 1.1% since June, the first month of decline. Values are up 55.4% since July 2019.
Zillow also reported that the mortgage payment on a typical home in DFW is $2,633 a month, including taxes and insurance. That's up 77.4% compared to July 2019.
According to Zillow, inventory in DFW has risen 10.2% since June, and the share of listings with a price cut in July was 22%, compared to 15.6% in June. Nationwide, after two years of unprecedented growth, home values fell for the first time since 2012 as competition for houses eased, according to Zillow's July market report.
The slowdown is being driven by decreased competition among buyers. Zillow's analysis says that affordability pressures have pushed many to the sidelines, and buyers are waiting in the wings to resume their search if and when prices relax a bit. Skylar Olsen, Zillow's chief economist, called the flattening of home values "a badly needed rebalancing. This slowdown is about discouraged buyers pulling back after the affordability shock from higher rates," Olsen said. "As prices soften, many will renew their interest, and we will continue our progress back to 'normal.'"
Luong said he sees positive signs in the market. The interest rate for a 30-year fixed mortgage dropped below 5% after peaking in June. More than 290,000 new jobs were added in Dallas-Fort Worth last year, so North Texas has one of the strongest labor markets in the country. "Reasonably priced homes that are in good condition and move-in ready are still selling very fast," he said. "However, the bidding wars have subsided considerably across the board."
No matter whether you prefer Dallas homes for sale or Fort Worth homes for sale, the Dallas-Fort Worth area is full of fun and surprises for the whole family. Local businesses bring lots of character to the DFW, and markets – from swap meets to farmers markets – go on every day of the week.
You'll never have to go far to have an exciting time looking for unique treasures. From the big cities to the small suburbs, communities make plenty of space for local markets. In fact, there are so many options you may not even know where to start.
Let's visit just a few of the DFW's fascinating markets perfect for shopping local:
Our real estate agents know there are plenty of places in the area for local shopping. It's one of the many perks of living in the area!
Contact us to find out more about Dallas-Fort Worth today.
September 25 is National Comic Book Day, and in honor of the occasion, we highly recommend paying your local comic book store a visit. We're lucky to have some really great comic shops here in Dallas, Fort Worth, and the surrounding areas.
Of course, we know you don't need a holiday just to raid the bins at your favorite comic book store! If you're wondering where you can always find the latest issue of your favorite comics in the DFW, our real estate agents know just where to go.
Great comic book shops are just the beginning of what the area has to offer. Contact us today to learn more about life in Dallas, Fort Worth, and the surrounding areas!
Love to cook? If so, you may be looking for a dream kitchen among Fort Worth homes for sale. You probably have some good ideas about what you want in a kitchen, but our real estate agents have some insightful advice that might make you reconsider what you're looking for. For instance, many homeowners think large when it comes to kitchen space, but experts say it's more important for your kitchen to be organized than to be expansive.
Make the most of your kitchen with these upgrades.
Still looking for a home complete with the perfect kitchen for all your culinary adventures? Our agents can help. Contact us today.
Renovating or updating your home is an exciting prospect. Whether you plan on living there a while longer or are fixing it up to sell soon, doing much-needed updates can be satisfying. Before you get too carried away, though, here are a few words of caution from our real estate agents.
If you're looking to sell your home soon, home improvement projects are a great way to boost its appeal to buyers. For more information about what upgrades sell the best, or to speak to an agent, contact us today.
No matter how big a house is, we seem never to have enough storage space. The problem might be you just haven't unlocked the secrets of a good storage strategy.
If you're considering homes among Dallas homes for sale or Fort Worth homes for sale, and you're wondering if the storage will be sufficient, just keep these tips in mind for how you might expand the storage space in your new home.
All these small changes will add up and provide you and your family more space so you can live more comfortably in your home.