Home prices in Dallas-Fort Worth have hit a plateau, with little change from June to July and remaining relatively steady compared to last year, despite interest-rate hikes. According to a report from North Texas Real Estate Information Systems and the Texas Real Estate Research Center at Texas A&M University, the median single-family home price in the area remained flat at $415,000. While prices are about $20,000 below last summer’s peak, they are still 47% higher than pre-pandemic levels in March 2020.
Contrary to fears of a housing bubble, experts from Texas A&M University suggest that a harmonious decline in both supply and demand has struck a balance, resulting in a boost to the housing median price. Despite mortgage rates more than doubling over the past two years, home prices in the Dallas-Fort Worth area have not experienced the significant decline that was anticipated. The local report includes data from existing-home sales, and while sales made directly by builders are not included, market analyst Residential Strategies found that North Texas builders sold a record-breaking number of homes from April to June.
Dallas-Fort Worth Home Prices Remain Steady Despite Interest Rate Hikes
Home prices in the Dallas-Fort Worth area have remained relatively flat from June to July, marking the end of five consecutive months of gains, according to a report from the North Texas Real Estate Information Systems and the Texas Real Estate Research Center at Texas A&M University. Despite the recent interest rate hikes, the median single-family home price in the region remained unchanged at $415,000. While this figure is about $20,000 lower than last summer’s peak, it is still 47% higher than pre-pandemic levels in March 2020.
Contrary to fears of a bursting housing bubble, researchers at Texas A&M University have noted that a balance between supply and demand has led to a boost in the housing median price instead. The increase in mortgage rates, which have more than doubled over the past two years, did not have a significant impact on home prices in the area. Jim Gaines, a housing economist for Texas A&M, mentioned that the expectation was for home prices to fall by 10% to 15% with the higher rates, but this did not occur.
The report primarily includes data from existing-home sales, although it also incorporates some new-home sales through real estate agents. However, sales made directly by builders are not included in the report. Market analyst Residential Strategies found that North Texas builders sold a record-breaking number of homes from April to June. This surge in sales, along with the region’s population growth and high employment, has contributed to the stability of home prices in Dallas-Fort Worth.
While some areas of the country have experienced more significant price declines, Dallas-Fort Worth’s housing market remains buoyant due to its strong economic fundamentals. The July report revealed a 6% decrease in single-family home transactions compared to the previous year, with homes selling on average after 39 days on the market and at 97.3% of the list price. The region continues to face a tight market with only 2.6 months of available inventory in July, far below the equilibrium of six months.
Collin County emerged as the most expensive county in North Texas, with a median home price of $530,000. On the other hand, Ellis, Kaufman, and Tarrant counties experienced double-digit percentage sales declines year-over-year. Real estate agent Angelia Ekholm of The Agency expects home prices to level out for the remainder of the year, with a potential seasonal rush in December. Ekholm highlighted that some homes are still receiving multiple offers, indicating continued demand in certain price ranges.
In conclusion, while home prices in Dallas-Fort Worth have remained steady in recent months, they have not seen significant declines despite interest rate hikes. The region’s robust population growth and strong employment market have helped to keep prices afloat. However, the tight inventory and increased competition for homes continue to pose challenges for buyers. Real estate professionals anticipate a stable market for the rest of the year, with a potential surge in activity during the holiday season.
Takeaways:
- Dallas-Fort Worth’s median home price remained unchanged at $415,000 from June to July, despite interest rate hikes.
- The region’s housing market has not experienced significant declines and has remained 47% higher than pre-pandemic levels.
- The balance between supply and demand has contributed to the boost in the housing median price.
- Dallas-Fort Worth’s population growth and high employment have helped to keep home prices stable.
- The tight inventory and competition for homes continue to present challenges for buyers.
