Dallas-Fort Worth housing market 'definitely cooling down' — but still simmering – Dallas Business Journal – Dallas Business Journal

on

|

views

and

comments

Dallas-Fort Worth is cooking up a record year for home sales and prices, but there are signs that the residential market is cooling from a boil to a simmer.
“On a macro level, the market is definitely cooling down, but we’re talking about going from extreme hotness to, like, still hotness,” DFW Opendoor General Manager Sharon Brown said in an interview with the Dallas Business Journal.
“Relative to last the last few months, the market is cooler,” Brown said. “But relative to last year, the year before and the years before that, it’s still super hot. Even though it’s cooling down, that doesn’t mean that it’s a cool market.”
The DFW market is cooling because more inventory is coming on the market and the volume of homes sold has decreased over the last three months, Brown said. Sales prices are also declining a tad, she said.
“It’s still pricey,” she said. “It’s still a seller’s market, but because of the inventory lift, because there’s more supply on the market, the price is slowly coming down — not tremendously, but slightly.
Home prices in DFW have risen roughly 17% in 2021, and they’re likely to rise another 4% to 5% in 2022, James Gaines, economist for the Texas Real Estate Research Center at Texas A&M University, said in a virtual meeting of the MetroTex Association of Realtors.  
Gaines forecast total existing home sales for DFW to increase by 3% in 2022.
He accompanied his predictions, however, with a COVID caveat.
“Doing a forecast now is really, really tough,” Gaines said. “Until and unless we have the coronavirus under control, all bets are off.”
Part of the reason for a housing cooldown is because incomes have not increased as rapidly as home prices, making affordability an issue, Gaines said.
New home construction in DFW is booming — up 37%, which beats the Real Estate Research Center’s forecast of a 22% rise, Gaines said.
Brown said conditions are improving for buyers in DFW.
“It’s better to buy now, for example, in Dallas, than it was four months ago. But it’s worse to sell now than it was four months ago,” Brown said in the interview with the Business Journal. “It’s just a little bit more competitive for sellers, which makes it more advantageous for buyers.”
Sellers in DFW are getting fewer same-day, all-cash and above-asking-price offers for their home, Brown added.
Gaines offered this advice to buyers:
“Is now a good time to buy a house? Well, yeah, if you can find one,” he said. “The interest cost is down. There is an activity level to do things, but also, it isn’t going to pay you to wait. The price of homes is going to be continuously increasing. It’s Economics 101. We’ve got relatively high demand with relatively constrained supply, and that is going to make price levels across the board come up.”
© 2021 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated 1/1/21) and Privacy Policy and Cookie Statement (updated 7/20/21). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals.

source

Share this
Tags

Must-read

Master list of the McDonald’s locations in Dallas selling the McPlant – CultureMap Dallas

McDonald's has bestowed upon Dallas-Fort Worth foodies a tremendous gift: North Texas will be among the first areas in the U.S. to have the...

Academic Groups Send Letters in Support of Professor Michael Phillips, Demand Reinstatement to Collin College – Dallas Observer

Dallas' independent source of local news and culture account Education Simone Carter February 11, 2022 4:00AM The...

Life Time Expands Footprint in Dallas/Fort Worth with Feb. 11 Opening of 124000-Square-Foot Luxury Athletic Resort in Frisco – Star Local Media

Sunny. High near 75F. Winds SW at 10 to 20 mph.. Partly cloudy skies this evening will become overcast overnight. Low 41F. Winds NNE at...
spot_img

Recent articles

More like this

LEAVE A REPLY

Please enter your comment!
Please enter your name here