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."
As a DIY person, you get a two-part thrill from doing things yourself.
If you're a DIY kind of homeowner, you may think selling your home is the ultimate do-it-yourself project. However, when it comes to selling your home, our REALTORS® know using the For Sale By Owner method is not necessarily the best choice. Marketing a home is exciting indeed, but experience tells us, your FSBO strategy will likely cost you more money than you save on sales commissions. Ask yourself these questions.
When you prepare your home correctly, you get more lookers and a better price. When you're selling a house you've lived in for a long time, it's easy to become oblivious to faded paint, broken tiles, and other conditions in need of attention. Little problems make your home less attractive to buyers. Any offers you receive will likely reflect anticipated repair and upgrade costs.
A real estate professional would walk through your home and recommend pre-listing adjustments such as repairs, decluttering, depersonalization, staging and curb appeal enhancements.
If your price is too high, buyers may quickly scan your listing then move on to more reasonably priced homes. The "2017 NAR Profile of Home Sellers and Buyers" revealed that 15 percent of FSBO sellers had difficulty pricing their homes. REALTORS® recommend comparative market analyses of similar homes sold and pre-listing appraisals to resolve difficult listing price issues.
The NAR study found that many DIY sellers relied on yard signs and relatives to get the word out. Twenty-eight percent didn't market their homes at all. While some listed via MLS and Facebook, most FSBO online marketing stats were surprisingly low. This approach can be problematic since 51 percent of buyers found their homes online.
If real estate professionals make marketing look easy, it's because they have experience and professional resources. Real estate professionals list on MLS sites, Agency websites, and social media, and they have a built-in client base. They also have an agency budget to market homes via print media, direct mail, online videos and other sources.
Unless a potential buyer has a pre-approval letter (not a pre-qualification), you shouldn't get too excited when they come to tour your home. Pre-approval means a lender has reviewed their financial and credit data and decided they are mortgage-worthy. While that letter won't guarantee a mortgage approval, it lets you know they're a serious buyer.
Each element of your negotiation/sales process--offers, counter-offers, sales agreements, closing documents--require written contracts. Each contract outlines seller and buyer duties, responsibilities, and the steps you must take to make the sale a reality. When you do it all DIY, you might end up hoping for the best as you sign off on a contract written by the buyer's attorney.
NAR's 2017 study determined that professionals negotiated better sale prices. The average home price for an FSBO sale was $190,000 while homes listed and sold by real estate professionals went for an average of $249.000.
Selling a house can be far more complicated than you imagine, but our professionals are ready to assist you. Contact us at RE/MAX DFW Associates when you're ready to list your home for sale in the Dallas - Fort Worth real estate area.
Since the Christmas holidays come only once a year, families with homes in the Dallas-Fort Worth area spend time planning for this most special of seasons. Family dinners, secret gift-wrapping sessions, Christmas card lists, (and most importantly) picking and decoration of the Christmas tree are all part of the holiday season.
The Christmas tree with its unique collection of ornaments and lights has a tradition that goes back hundreds of years. They are a fun and cheery part of the holiday celebration and picking out the perfect Christmas tree for your Arlington home is an exciting event for the whole family. Here are tips to find the healthiest and freshest trees for your new home in the Dallas-Fort Worth area.
Contact RE/MAX DFW Associates when you're searching for Dallas homes for sale. Our real estate professionals live and work in our communities and have first-hand knowledge about our local areas.
In a study released earlier this year, GoodCall, a South Carolina data analysis firm, revealed three Collin County cities--Frisco, Allen and Richardson, were among the best cities nationwide to buy forever homes. According to GoodCall, "High-ranking cities are those that generally are affordable with growing home values, growing population, low unemployment and crime rates, and an educated population. Texas is the place to go if you're looking to settle in for the long haul."
Our team at RE/MAX DFW Associates--especially our REALTORS® in Frisco--weren't too surprised with GoodCall's results. We live and work in the local area and love our community.
Let's take a look at why Frisco ranked #3 on their list.
It's not hard to understand why Frisco has earned its name as the"Texas Rising Star." Frisco, a suburb of Dallas, is one of the fastest-growing cities in the United States where home values are rising.
Frisco's residents enjoy living in a community with local pride and small-town charm while being only a short drive from the excitement of living in the DFW Metroplex.
Frisco is home to a multitude of entertainment and attractions including NFL's Dallas Cowboys headquarters and training center, the FC Dallas soccer team, the Frisco RoughRiders Class AA baseball team, the Dallas Stars NHL team, and the Texas Legends.
We've got hiking trails, biking trails and parks located throughout Frisco just waiting to be explore and enjoyed. We've got an outdoor adventure waiting for you: Hiking and biking...you'll find it, taking your kids for an afternoon at the park...got that too. Frisco has received the designation as "Tree City USA" by the National Arbor Day Foundation.
Whether your tastes run from simple to sophisticated, Frisco's culinary scene offers s variety of options for any appetite. Order a burger from Kenny's Burger Joint or an Italian delight from Tavolo Italia. Indulge in Texas BBQ from 3 Stacks Smokehouse or finish the evening at Andy's Frozen Custard.
Frisco is the ultimate shopping mecca. Second only to sports in our community, shopping is one of the most popular things to do in Frisco. Visit Stonebriar Centre in North Dallas if you prefer a shopping mall experience or for the charm of boutique shopping in Frisco, visit the Blue Door Boutique or Lillian Welch.
Frisco continually racks up accolades from nationally recognized publications like CNN, Money Magazine and Men's Journal as "The Best Places to Buy a Forever Home," "One of the Best Place to Live," and even, "#1 Place to Raise an Athlete." USA Today ranked Frisco as the second safest city in Texas to live.
When you're ready to make Frisco your forever home, contact our local experts at RE/MAX DFW Associates to start your home search.