Dallas-Fort Worth homes are taking nearly twice as long to sell as they did 12 months ago, and the number of sales continues in a steep decline.
The average DFW home lingered on the market for 56 days in January compared to 29 days in January 2022, according to the latest Re/Max National Housing Report.
North Texas home sales continue the decline that began last fall, with sales down 31% from the previous year. The number of home sales in January totaled 4,580 compared to 6,605 in January 2022. Home sales were also down sharply from a month ago (6,608 houses sold across DFW in December 2022).
Home sale prices appear to be stabilizing and are up "only" 4.2% over last year -- the smallest year-over-year increase over the last 12 months. The median sale price was $375,000 in January vs. $360,000 in January 2022.
PRICE DROPS IN DALLAS-FORT WORTH
On a monthly basis, the price dropped 2.6%, from $385,000 in December. Prices in DFW peaked in May, according to the Re/Max data.
Over the past 12 months, more and more homes in Dallas-Fort Worth have been selling below the list price as the market continues to adjust, said Todd Luong, an agent with Re/Max DFW Associates.
“In these past 12 months, our market has actually seen a 4% drop in the close-to-list price ratio, which is one of the largest decreases in the nation,” Luong said. "It shouldn't be surprising that our drop is more pronounced than in other parts of the country, especially since the increase in our home prices have outpaced other cities in the U.S. for so long."
DFW ranks fourth in the U.S. for the largest decrease in close-to-list price ratio, according to the Re/Max report. The close-to list price ratio was 97% in January. That compares to 101% a year ago, meaning the median house in DFW was selling for more than the asking price at that time.
“You have to remember that the close-to-list price ratio in Dallas-Fort Worth was quite high a year ago,” Luong said. “After peaking in May of 2022, home prices are getting closer to what they were a year ago.”
Luong added that he and other agents are seeing more properties get multiple offers since the start of the year. “I didn't see this at all during the last quarter of 2022,” he said.
The Re/Max analysis includes primarily existing home sales data — houses that are owned and occupied before coming onto the market.
Another new analysis by Dallas-based HomesUSA.com shows that newly built homes in DFW, like existing houses, are taking longer to sell.
TIME ON MARKET IN DALLAS-FORT WORTH
The average time on the market for new homes in DFW increased to 95 days in January compared with 83 days in December and 53 days on the market a year ago, according to the HomesUSA.com New Home Sales Report.
But unlike the case with existing homes, builders can take heart in the fact that the number of new home sales rose month-over-month in January, albeit slightly.
The three-month moving average showed 1,505 homes sold in January, up from December’s total of 1,458. That said, many of the new home deals are being fueled by discounts, mortgage rate buydowns and other incentives being offered by homebuilders and their affiliates.
MORTGAGE RATES IN DALLAS-FORT WORTH
A third new study, this one by Zillow, suggests that what happens next in the DFW housing market will be heavily influenced by mortgage rates.
Monthly mortgage costs for a typical home being sold in the Dallas-Fort Worth metro area, with a 20% down payment, stand at $1,752 — up 45.8% year over year and compared to $919 in January 2020.
The “typical" home in DFW, according to the Zillow Home Value Index, was valued at $359,743 in January — up 4.5% year-over-year but down 0.7% month over month.
Zillow’s analysis also found the inventory of homes on the market is down 35% from January 2020 in DFW.
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