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."
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.
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!
The parks and trails of the DFW area have so much to offer, and now is the perfect time for an outdoor adventure with your furry friend. Many of the best DFW trails are dog-friendly, with beautiful green spaces to explore and plenty of opportunities for your pup to play with new friends. There are trails located in popular parks and nature preserves and trails that connect multiple local outdoor attractions. Our real estate agents have all of the details, with our guide to 6 trails that you and your dog will love in DFW.
Cedar Ridge Preserve – 7171 Mountain Creek Pkwy, Dallas, TX 75249
The Cedar Ridge Preserve is a nature preserve located close to Dallas homes for sale, with various trails to explore. It's a popular spot for bird-watching, with wooded trails that are also ideal for adventures with your pet. There are a total of 13 short trails winding throughout this outdoor space, all maintained beautifully by a dedicated team of conservationists.
Tails 'N Trails Dog Park – 950 SE Green Oaks Blvd., Arlington, TX 76018
Ideal for dogs who love to socialize, the Tails 'N Trails Dog Park is easy to reach from Arlington homes for sale. This space includes an expansive off-leash dog park that's perfect for playtime, along with trails to traverse. You will frequently find plenty of other dogs here for your pet to play with, especially if you visit on weekends.
Northshore Park Trail – 2908 N Park Dr., Flower Mound, TX 75022
You'll find tons of great trails to explore near Flower Mound homes for sale, including the popular, multi-use Northshore Park Trail. This trail, which is part of Northshore Park, is used by mountain bikers, hikers, and pet owners from throughout Flower Mound. When you're looking for a quiet, secluded spot for a walk, try visiting in the morning or early evening.
Preston Ridge Trail – 6994 Belt Line Rd., Dallas, TX 75254
Looking to explore multiple parks on the same day with your pup? The Preston Ridge Trail connects a variety of parks within Dallas and can even take you all the way to Plano. You can pick up the trail at Fretz Park, then follow it for more than 6 miles as you visit Salado Park, Campbell Green Park, and points beyond.
Trinity Forest Trails – 4750 Great Trinity Forest Way, Dallas, TX 75216
If you're searching for a trail system that offers long, scenic walks, the Trinity Forest Trails are sure to catch your eye. This trail loop runs for more than 10 miles, connecting an eclectic collection of outdoor attractions that include Trinity Forest Golf Course, the Texas Horse Park, and the Trinity River Audubon Center. This trail is twelve feet wide and fully paved, so there's plenty of room for outdoor fun, even when the trail gets busy.
Tandy Hills Natural Area – 3400 View St., Fort Worth, TX 76103
There are plenty of gorgeous outdoor spaces to explore near Fort Worth homes for sale, starting with the 160-acre Tandy Hills Natural Area. This conservation area provides a window into the past of DFW in a classic Fort Worth prairie environment. The land has never been developed and is especially beautiful in the spring when prairie flowers are in full bloom.
Ready to find a Texas home that both you and your favorite pet will love? We can help. Contact us to buy and sell homes throughout the DFW area.
The crisp air of late fall makes this a particularly good time to go for a bike ride in the Dallas-Fort Worth area. And with Go For a Ride Day coming right up on Sunday, November 22, our real estate agents are excited to share some of our favorite bike trails in the DFW.
Contact us today to learn more about life in the Dallas-Fort Worth area. From wide-open spaces to vibrant cities and towns, it's an incredible place to live, and our team is always ready to help you find your dream home.