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."
Dallas is a city with many different sides. It's a tech hub, a foodie paradise, and a gateway to the Wild West. It's also one of the great cultural cities in Texas, and our real estate agents never cease to be amazed by Dallas' vibrant art scene.
The Dallas Arts District is at the heart of that scene. Located in Downtown Dallas, it's the largest arts district in the United States. From museums and art galleries to world-class restaurants and live music venues, there's always something fresh waiting to be discovered. Be sure to check out these attractions in the Dallas Arts District!
Contact us today to learn more about living, working, and playing in Dallas, Texas. It's a unique art and cultural hub in the Lone Star State, and our real estate agents are dedicated to helping you find your dream home in Dallas and the surrounding areas.
The Dallas-Fort Worth area is fun in every season, but during the summer months, the area is filled with summer events and activities to keep your family's calendar full! Our real estate agents love to spend their off-time at these entertaining places.
Fun is in season all year long. For friendly and experienced help buying or selling a home, contact us at RE/MAX DFW Associates.
Catching a baseball game is a fun family summer evening activity, and Frisco just happens to be home to one of the best ballparks in Minor League Baseball.
Head on over to Riders Park where you can watch the Frisco RoughRiders, a double-A affiliate of the Texas Rangers, compete in the Texas League. Our real estate agents love heading out to the park, grabbing some peanuts, and relaxing on a warm summer night. It's super easy to do because the park is just a short drive from some beautiful Dallas homes for sale.
About Riders Park
Riders Park is a beautiful ballpark equipped with plenty of seating, luxury suites, fun activities, and great food. Concession options include Rojo's, Frisco Smoque BBQ, Frank's Hot Dogs, Coop & Kennel, Fairlane's Hot Dogs, and Ono Pacific Grill where you can grab a delicious cheesesteak. There are also six bars throughout the park where you can enjoy beer, wine, mixed drinks, or frozen margaritas. The park makes for a great community asset that is conveniently located just a short distance from these Fort Worth homes for sale.
The park is surrounded by 5 parking lots, all of which open 2 hours before the game.
Upcoming Games and Promotions
The RoughRiders have several home games between now and September 11, with many taking place throughout the week. Below are some highlights from the upcoming schedule along with some great promotions:
Make sure to buy your tickets in advance for a fun summer evening with the whole family. View the full game schedule here. We love showing our support for our local sports teams, and a trip to Riders Park gives you the opportunity to enjoy America's favorite pastime. Contact us today for more information about local events.
Want to plan some outings that you and your kids can both enjoy? The DFW is full of family-friendly activities that are entertaining and educational. Our real estate agents love spending quality time with their families at these great spots around the Dallas-Fort Worth area.
Contact us RE/MAX DFW Associates for help with any of your real estate needs.
It may not be the horse-drawn sleigh of old, but your car serves as a perfect vehicle for seasonal adventures. Our real estate agents can't wait to take in these holiday light displays that are just minutes from Dallas homes for sale.
Have your own festive light display in your new DFW home. Contact us at RE/MAX DFW Associates to learn more.
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.
Have you thought about jumping on the bandwagon and making your home smarter in 2021? If not, maybe you should. There are so many ways smart features increase your home's comfort, security, and efficiency that a smart system bears looking at. What's more, if you're listing your home among Dallas homes for sale or Plano homes for sale, you might include the smart system and appliances as a selling point.
In case you're not familiar with all the features you could have with a smart system, let's look at a rundown.
Manage your home's environment from near or far with a smart thermostat. Use an app on your smartphone or tablet to control the temperature; depending on if you have an in-house humidifier, you might even be able to raise or lower humidity. Some systems can sense your approach and raise or lower the temperature for your comfort. Need an analysis of your energy usage? A smart thermostat can do that as well.
Whatever else is going on in our lives, Thanksgiving is a constant, providing us with a comforting sense of gratitude. Celebrate in style with a fine-dining feast from one of these upscale restaurants around DFW recommended by our real estate agents.
In 2021, will you be giving thanks for a new home in Dallas or Fort Worth? Contact us at RE/MAX DFW Associates for help with all your real estate questions.
North Texas home sales dropped in September by the largest percentage in more than seven years. Preowned home sales in the area fell by 7 percent from September 2017. That was the biggest year-over-year sales decline since early 2011, according to data from the Real Estate Center at Texas A&M University and North Texas Real Estate Information Systems. Home sales by real estate agents have been down in three of the last four months. Higher mortgage costs and years of rising home prices have caused some buyers to pull back from the market. Mortgage rates on average are currently about 4.7 percent — the highest level in seven years — and are expected to go higher in 2019. With September's sales decline, preowned home sales by real estate agents in North Texas are now flat with the same period of 2017. A record of more than 106,000 homes sold in the area last year. "We think things are going to be flat," said Dr James Gaines, chief economist for the Real Estate Center. The Dallas-Fort Worth housing market has cooled significantly since early in the year when sales were still up by double-digit percentage rates from 2017 levels.
Home price growth has also slowed. Median home sales prices rose by 4 percent in September from a year earlier to $251,000. For the first nine months of 2018, prices are up 5 percent from the sale period in 2017. With sales declining, the number of houses on the market in North Texas has growth to 25,895 preowned single-family homes listed with real estate agents at the end of last month. That's 16 percent more homes for sale in the area than a year ago. On average it took 44 days to sell the houses that trade in September — up 5 percent from a year earlier. Currently there is about a 3-month supply of homes available for purchase in the more than two dozen North Texas counties included in the survey.
Is the housing boom running out of gas? During the last few years, the home market has been on a tear in North Texas and in other parts of the country, with prices soaring and buyers lining up as soon as a sign hits the front yard. But there are growing signs that the fast-paced housing market is shifting gears, with a decline in sales in many markets and smaller price increases. In July, U.S. preowned home sales fell from a year ago for the fifth month in a row. And nationwide new home sales were down almost 2 percent in July, causing analysts at IHS Markit to question if the bull home market has turned bearish. "The economy is strong. Labor markets are solid. Yet, new home sales and single-family housing starts and permits have stalled. How can this be?" said Patrick Newport, executive director of the U.S. economics team at IHS.
Newport said rising home prices and higher mortgage rates have cooled the ardor for home buying. "This has choked off demand," he said. A slowdown in immigration and household formation could also be factors, Newport theorizes. In North Texas, year-over-year preowned home sales have fallen in many neighborhoods, and for the entire region, year-to-date sales were up a measly 2 percent as of July. At the same time, the double-digit percentage home price gains of the last few years have faded in Dallas-Fort Worth. Through the first seven months of 2018, median home sales prices were up only 6 percent from the same period last year, according to sales data from real estate agents.
Property agents say that some first-time buyers have given up after losing out to other buyers or all-cash investors who snapped up affordable homes. At midyear, the number of prospective U.S. homebuyers who said they planned to make a purchase in the next 12 months fell to just 14 percent — down from 24 percent in fourth quarter of 2017, according to the National Association of Home Builders. That's still another sign that the home market — while not in a traditional bubble — may be headed for slower sales in the year ahead. "It's clear that the winds that have boosted sellers over the past few years are ever-so-slightly starting to shift," said Zillow senior economist Aaron Terrazas.