Lately, the market has been adjusting to the higher interest rate environment and in terms of price appreciation, we have seen massive increases, then decreases and lately, even corrections. Currently, we are staying around the correction to a flat-type of growth and price appreciation in the Dallas-Fort Worth Market. This is all good news. We needed to see change and stabilization in the market. Prices were out of control there for a while, so everything is getting back to a more normal pace now.
In fact, in the Dallas-Fort Worth Market, we saw prices drop 1% as an average for the whole D-FW Market for the first time since 2020. But the reality is, you are still up 40% from where you were three years ago. And the other good news is that when you go to buy a new home, you will also get to realize the price appreciation that has stabilized lately. And on top of that, you will still get the 40% in appreciation you have accumulated the past three years on the sale of your property.
Overall, demand is strong in this area and not going to slow down any time soon since we simply do not have enough housing in the D-FW Metroplex. And for sellers, the bottom line is this… You must have the home priced right. Then, you will still get multiple offers and see a lot of attention for your property.
But now, I want to look at a breakdown of the numbers. And this time, we are going to look at it by all construction types and then take new construction out of the equation so we can zero in on what the numbers look like those of you who are current homeowners.
The average sale price for Rockwall County is basically flat, Kaufman County is down 1%, Hunt County is up .5% and Dallas County is down 1.1%.
For price per square foot, it is the same thing. It is basically flat from a year ago in March 2022. We are seeing flat price appreciation. But again, we are still up about 40% from the last three years, so that’s good news.
In terms of days on market, homes are sitting much longer. But it’s not a buyer’s market yet. We are still in a seller’s market when you look at the numbers.
In looking at months supply of inventory, all of these areas are still within the seller’s market range. But in Hunt County, it is on the cusp of becoming a buyer’s market. Sellers still have most of the leverage on selling their property right now is the main thing to know here.
The number of homes for sale has increased around 100%, except for in Dallas County, which is up about 50% over last year.
New listings on the market are the culprit of what we are seeing in our current market today, because we do not have near enough inventory in D-FW. Until we get more listings and more inventory, we are not really going to see things stabilize completely. We will keep seeing up and down, flat to small corrections, and then we’ll get some more inventory, and then see prices come back up again once that inventory starts depleting.
We will still probably only see single-digit growth in price appreciation, though. But ultimately, we need more inventory and more sellers to come on the market. This takes people continuing to get used to the “new, new,” though, which is basically the higher interest rates and sellers being okay with buying at those rates now.
People are getting somewhat used to the “new, new,” which is why we see activity getting back to more normal levels than they were previously… But for new listings right now, we are looking at around 10% up in Rockwall County, 11.9% in Kaufman County, 25.7% in Hunt County, and down 4% in Dallas County. What we need to be is closer to 100% up in new listings. But we probably aren’t going to see that soon.
Pending Sales, an indicator into April’s activity, shows sales are still down except in Hunt County. Hunt County has affordability, so there are more buyers there right now. But in general, the market is still in a recession in terms of the amount of transacted business in the real estate market.
For closed sales, Rockwall was an anomaly last month. It was up 25% in the amount of business transacted from a year ago. But Hunt was down 4%, Kaufman was down 15.3%, and Dallas was down 18.4% in closed sales. So, transactions are down in general.
Now, looking at things from a resale point of view and taking new construction out of the equation, you can see the market from a different perspective, which is more likely to be your perspective as a consumer that currently owns a house.
When we take new construction out, we see that Rockwall is flat on sales price, Kaufman County is down 3.3%, Hunt County is down 7.6% and Dallas County is down 2.2%. So, the takeaway here is that new construction is holding prices up a little bit when you average everything together. So, there is actually more of a correction that went on last month than what we could see previously with new construction added into the mix.
For price per square foot, this is still flat across the board. So, your value is holding up is what that means – you still have the 40% gain of the past few years.
Days on market is significantly higher here when you look at just resale homes. We are getting back to a normal market, though. It’s good and healthy – and necessary for this to rise in order to get back to a normalized market.
For months supply of inventory, it is still a seller’s market on the resale side.
For new listings, we are not getting near enough here. These numbers are much lower than they were with new construction included in the equation.
For pending sales, they are way down for Rockwall County, Kaufman County, Dallas County and then Hunt County is flat where the buyer is chasing value in this higher interest rate environment.
Closed sales were up some in Rockwall, but down a lot in Kaufman, Hunt and Dallas Counties. So, we’re still in a recession in terms of amount of transactions happening — and we have been since about August of last year.
But I see us coming out of it. So if you are an agent, that’s the good news for you. There are definitely indicators that we are getting ready to come out of this.
Around this time right now, you are all getting in your taxes and appraisals. And it will likely be up by large numbers. But you are going to have an argument to make. Because by the end of last year, we did not see those big number jumps in price appreciation.
I know that county officials aren’t excited about me saying this, but there should be a case for you to make a dispute on your property taxes.
As always, if you need any real estate help or advice, please reach out to us at M&D Real Estate at (972) 772-6025. We would love to help you with anything you need real estate related – whether residential, commercial, or property management services.
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