It’s been a roller coaster year for the housing market. Prices started at record highs earlier this year with increased market activity and then, the market came to a screeching halt around late summertime, with closed sales falling dramatically and prices starting to inch back downward ever since. While the housing market has been more difficult to navigate for buyers, sellers and industry professionals, experts do expect the market to rebound in 2023 as rates continue to come back down.
The current 30-year mortgage rate is hovering around 6.57% as of December 28. While this is still double what it was over this time last year, it is still better than the historical average rate of 8% for a 30-year fixed mortgage, according to NAR.
The current average sales price in North Texas is about $419,000 dollars, an increase of 11.85% over December 2021. Homes are still gaining in equity, which is great news for homeowners and sellers in the Dallas-Fort Worth market. In Rockwall County, the average price Is $485,026, up 11.6% over last year. In Kaufman County, the average home price is $375,644, up 13.1% from 2021. In Dallas County, the average is $505,486, which is a 15.9% increase and in Hunt County, home prices sit around $312,799, up 6.8% over last year.
However, homes are now sitting a good deal longer on the market than they were in 2021, with the average days on the market inching upwards to 47 days, which is about 86% higher than this same time last year. The months supply of inventory, a leading indicator in whether we are in a seller’s market, buyer’s market, or balanced market, has also shifted. Currently, the average months of inventory sits around 3.3 months, up 104% from December 2021 and up by a whopping 1.9 months in just the last six months.
The big story of the year is still the major “pause” we have been talking about and have been in the midst of since July of this year. Closed sales are significantly down, by an average of 33% across the metroplex year over year. These are bigger numbers and drops in activity than what we saw even in the Great Recession. Only 1,397 homes closed in November 2022 in Dallas County, compared to 2,133 in November 2021.
Also down is the percentage of list price sellers are getting on their homes. Gone are the days of 105% over list price across the board. Now, the average is closer to about 94% of the original list price – which is closer to the historical norm. Price reductions have become much more common in recent months, with some sellers reducing their original list price by as much as $50,000+ to get their homes sold.
The good news is sellers still have increased equity over last year, continuing to increase faster than home prices have historically – and, if you’re looking to buy, things are looking up for you, too. There is more inventory, prices have fallen compared to their peak earlier in the year, and more sellers are offering concessions to get their homes sold faster.
Buyers looking to make a purchase in 2023 might want to get started sooner than later, as January is typically when home prices are at their lowest, by an average of about .51% less than the rest of the months in the year!
Experts expect home sales to rebound with interest rates generally coming down in recent months, despite a small uptick in the past week. While many cities across the country worry about a housing bust, Dallas-Fort Worth has stayed mostly strong due to large population growth, high demand and a more decent price point compared to other areas of the country.
As Featured in the Dallas Business Journal, CBS News, The Real Deal, WFAA | ABC, & More…
Leave your details, select your interest(s), and we’ll get you more information on how we can help.