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."
The DFW is a delightful blend of urban amenities and country flavor. Contact us at RE/MAX DFW Associates for help with all your real estate needs.
St. Patrick's Day is coming right up on March 17. It's a holiday that brings a wealth of enjoyable annual events to the Dallas-Fort Worth area.
If you're looking for a way to have fun and get your blood pumping this March, be sure to check out one of these great St. Patrick's Day festivals, 5ks, races, and runs in DFW!
There's always something fun and exciting happening in the Dallas-Fort Worth area. Contact us today to learn more about life in DFW and talk to our real estate agents about finding your dream home 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.
Our real estate agents love having an excuse to enjoy a sweet treat. March 14th is affectionately known as "Pi Day" -- and we think that's close enough!
There are so many great bakeries in the DFW area, you might want to start visiting them now, so you're prepared when the big day rolls around. Here are a few of our favorites.
Are you looking for a "sweet" deal on a new home? Our agents would love to show you some of the area's best neighborhoods! Contact us today to discuss your goals and get started.
The Central Flyway is one of America's most highly trafficked bird migration routes, and the Dallas-Fort Worth metro area is smack-dab underneath it. That makes this one of the best areas in the country for birdwatching.
One of the things our real estate agents love most about life in the DFW is its abundance of outdoor recreation. That includes incredible birding opportunities. Be sure to check out one of these top birding sites in Dallas, Fort Worth, and the surrounding areas.
Contact us to learn more about life in the Dallas-Fort Worth area. The DFW is a hub for business and culture that also happens to offer incredible opportunities for outdoor adventure.
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.