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."
If you're a homeowner, you know that spring cleaning is essential to a clutter-free home. When winter cold fades away, and spring sunshine appears, it's time to roll up your sleeves and tackle some of those indoor and outdoor chores around the house. Our real estate agents know that buyers pay attention to small details that reflect an organized, well-maintained home. Tackle every spot in your home, even the ones that are commonly overlooked, with these helpful tips.
In a busy household, cleaning the refrigerator, stove, microwave, and dishwasher are chores that often get pushed aside. Although they take time and energy, they're essential to prevent a buildup of spills and food residue, rodents, and potential fire hazards in the kitchen. When spring cleaning:
Sweep and mop under large appliances
Get rid of old food in the fridge
Clean the stovetop and oven with a degreaser
Remove spills and food residue from the microwave
Remove food debris and any broken glass from the dishwasher
Clean coffee makers, toasters, and can openers to remove bacteria
Spring cleaning provides the perfect time to check the expiration dates on food, get rid of old or unwanted items, and organize your kitchen pantry. For faster cleaning, remove items shelf by shelf, starting with the top shelf. Place items on your kitchen countertops while cleaning pantry shelves with warm soap and water or a spray cleaner that removes grime and stains. If you want to label or reorganize food items, this is the perfect opportunity.
Cabinets, Closets, and Draws
Cabinets and drawers can quickly become filled with clutter and unused items, especially after living in a home for a while. Buyers interested in Dallas homes for sale don't want to see clutter overflowing in cabinets, drawers, and closets. Spring cleaning provides the perfect opportunity to get rid of unwanted items, old clothes, and expired medications, so your home doesn't look neglected.
Under Kitchen and Bathroom Sinks
Areas under kitchen and bathroom sinks are commonly used to store cleaning products and household essentials. These areas are often neglected and subject to a buildup of clutter, moisture, leaky pipes, and mold. If garbage disposals are not cleaned regularly with disinfectant, they can build up bacteria from food debris and unpleasant odors. Potential home buyers often check under kitchen and bathroom sinks to look for signs of rotten wood, mold or mildew or standing water that signal potential plumbing problems.
Ceiling Fans. Chandeliers, Lamps, and Sconces
When it comes to cleaning, indoor and outdoor lighting fixtures are often overlooked. For many homeowners, indoor ceiling fans, chandeliers and sconces, lamps and lampshades, and outdoor lighting fixtures don't get cleaned on a regular basis. Unfortunately, the grime, dirt, and dust that builds up and blocks light makes indoor spaces look dark and dingy, and outdoor spaces unappealing to potential buyers looking for Fort Worth homes for sale.
Air Ducts and Vents
Dirt and debris that builds up in air ducts and vents can cause excessive dust in your home and respiratory problems for your family. To remove dust buildup from vents, remove them and wash them with hot soapy water. To clean your air ducts, you need to schedule a cleaning with a local professional HAVC technician who has the proper equipment.
Take the time for spring cleaning to ensure a well-organized, healthy home. If you're interested in buying or selling a home, contact us to find out how we can help with your real estate needs.