DALLAS — This story originally appeared in the Dallas Business Journal, a WFAA news partner. To read the latest business or real estate news, visit their website.
The average price of a new house in Dallas-Fort Worth declined by more than $10,000 last month, and the new home sales count fell slightly.
The three-month moving average of new home prices in North Texas stood at $502,686 in September, down from $512,934 in August, according to the latest New Home Sales Report by Dallas-based HomesUSA.com.
New home prices also dropped in Austin and San Antonio last month. Houston was the anomaly, as the average new home price in the Bayou City set another record at $429,225 vs. $426,115 in August.
Austin's three-month moving average price decreased in September to $541,563 from $555,927 in August. In San Antonio, the average new home price decreased in September to $400,473 from $406,099 in August.
Over a two-year horizon, new home prices are up sharply in all four major markets in Texas.
In September 2020, the three-month moving average price was roughly $375,000 in DFW, $420,000 in Austin, $350,000 in Houston, and $300,000 in San Antonio.
In percentage terms, new home prices at their current levels are up roughly 34% in DFW, 33% in San Antonio, 29% in Austin, and 23% in Houston compared to where they stood in September 2020.
New home sales fell slightly last month in DFW to 1,144 vs. 1,149 houses sold in August.
DFW homebuilders are responding to sharply higher interest rates by offering incentives to buyers and higher commissions and bonuses for real estate agents, said Ben Caballero, CEO and founder of HomesUSA.com.
“With inventory increasing, and the pace of new home sales stabilizing, Dallas builders are implementing multiple strategies to avoid price reductions,” Caballero said in the latest report.
Meanwhile, housing starts across Dallas-Fort Worth fell by more than a third in the most recently completed three-month period as homebuilders pulled back due to diminished demand as mortgage rates rose.
Dallas-Fort Worth active new home sale listings reported to the Multiple Listing Services increased last month, according to HomesUSA. In September, the three-month moving average of active new home listings in DFW was 6,249 compared to 5,581 in August.
In addition to DFW, the Houston, Austin and San Antonio metro areas also reported an increase in new home sales inventory last month.
The outlook for future sales remains relatively robust. Based on local MLS data, pending new home sales rose statewide and in all four Texas major new home markets last month, according to HomesUSA.
Statewide MLS data shows pending sales in September were 4,412 vs. 4,308 in August.
Pending new home sales last month in DFW were 1,659, up from 1,619 in August. In Houston, pending sales in September were 1,570 compared to 1,566 in August. In Austin, pending sales in September were 670 versus 646 in August. And in San Antonio, pending sales last month were 514, up from 477 in August.
