DALLAS — This article was originally published by our content partners at the Dallas Business Journal. You can read the original article here.
While the impact of the Federal Reserve's interest rate cuts on the housing market remains to be seen, there are many neighborhoods in the Dallas-Fort Worth area where homes have been selling "PDQ" even with high rates. That's "pretty darn quick."
One neighborhood is near Galleria Dallas. Another is in Tarrant County. A third is in Richardson.
ZIP code 75244 east of Galleria Dallas leads the way, with homes spending an average of 43 days on the market in the second quarter.
That's according to a Business Journals analysis of data from Black Knight Inc., which looked at the fastest-selling ZIP codes around the nation. The analysis focused on ZIP codes with at least 20 homes sold in the quarter and a minimum average home price of $350,000.
The 75244 neighborhood includes parts of both Farmers Branch and Dallas. Interstate 635 and Midway Road cut through the heart of it and it’s bounded by Marsh Lane to the west, Dallas North Tollway to the east and Forest Lane to the south. It lies just across the tollway from the Galleria shopping mall and mixed-use development.
The average listing price of homes sold in the area was $861,950 in the second quarter, according to multiple listing services data compiled by the Business Journals.
The 75244 average of 43 days on the market was tops in the Metroplex but was quite a bit higher than the fastest-selling ZIP code in the nation: homes spent an average of 27 days on the market in Q2 in Washington State's 98043, north of Seattle.
Nationally, average days on the market fell 11% between the first and second quarter to 81. That was up about 2% from a year prior.
In Texas, homes were selling in just 36 days in the 77094 ZIP code in west Houston, making it the fastest-selling market in the state. The average list price of the homes sold in the area in the second quarter was $712,413.
Within DFW, ZIP code 76039 in the Tarrant County city of Euless was the second-fastest selling area, at an average of 45 days on the market in the second quarter. The average listing price was $434,731.
Third-fastest was the 75080 ZIP in Richardson, generally east and south of the University of Texas at Dallas and west of U.S. Route 75. Homes sold in an average of 46 days and the average list price of the homes was $544,408.
There was a three-way tie for fourth — homes spent an average of 48 days on the market in the 75093, 75287 and 75067 ZIPs.
75093, in Collin and Denton counties, includes the affluent Willow Bend neighborhood on the west side of Plano just east of the Dallas North Tollway as well as the Prestonwood area west of the tollway. The average listing price in the second quarter was $855,499.
The 75287 area, in Collin County, also includes part of Plano and lies southwest of Willow Bend, just south of President George Bush Turnpike and generally along the Dallas North Tollway. Homes sold there in the second quarter were listed for an average of $607,695, according to the MLS data.
75067, in Lewisville, had an average listing price of $390,610.
Rounding out the 10 fastest-selling ZIP codes in North Texas:
- 75208 in the Denton County city of Flower Mound, averaging 49 days on the market, listed for an average of $628,910
- 76054 in the northern part of Hurst in Tarrant County, averaging 49 days on the market, listed for an average of $458,026
- 75019 includes parts of Coppell, Dallas, Grapevine and Carrollton, averaging 50 days on the market and were listed for an average of $738,348.
The highest average listing price of homes sold in DFW was Highland Park's 75205 ZIP code. The 71 homes that sold through the MLS in 75205 in the second quarter had an average listing price of nearly $2.2 million and spent an average of 59 days on the market. That's still quite fast in the luxury housing world.
It's also worth noting that many homes sold in high-end neighborhoods such as Highland Park are off-market or pocket listings in which the seller does not place the property on the MLS, but an agent has a listing agreement.
The national picture
Among the nation’s 10 fastest-selling ZIP codes, 30 days was the average time on the market — considerably faster than the national average of 81.
According to Business Journals research, the fastest-selling ZIP codes were clustered mainly around tech hubs, particularly Seattle and San Francisco — despite many of those markets being classified as overvalued.
Average home sale prices up 53% since 2019
Black Knight data reveals the average sale price for the second quarter was $683,563, an increase of almost 6% from the first quarter and up a whopping 53% from pre-pandemic sales figures.
Among the second quarter’s fastest-selling ZIP codes, $1.4 million was the average home price.
Yet despite surging prices, many ZIP codes adjacent to the country’s major metros remain competitive housing markets. California accounts for more than half of the nation's 1,000 priciest ZIP codes for home values, followed by New York (96) and Massachusetts (74).
In California, homes sold in 58 days on average in the second quarter. Massachusetts ZIP codes reported 69 days.
Among American ZIP codes where average home prices topped $3 million, average time spent on the market was 74 days.
The luxury market has been insulated from some recent real estate trends as buyers and sellers are less affected by affordability challenges.
Average annual increases in home equity have now approached 10%, tying many homeowners' rising net worth to their real estate holdings.
Coupled with the mortgage lock-in effect, some markets could still be slow to thaw even with anticipated rate decreases.