While everyone is home trying to stay healthy, there are a lot of people who have taken to trying to do things around the house on their own. This has helped homeowners keep busy when they have
DFW Market Update
The Dallas-Fort Worth area housing market is changing. The days of listing your house for sale and having a stack of offers to review the next day have come to an end. Why? The supply of homes for sale has finally caught up to the demand. Basic economics taught us all that when demand is high while supply is low, prices will go up. For several years, there were not enough homes on the market for the number of people trying to buy, so multiple people were competing for the same homes. For several years, the DFW area had record-breaking low housing inventory levels paired with record high demand at the same time.
Builders have been busy building new homes and opening up new communities as fast as they can, while more homeowners have listed their homes for sale. While the “slowing” of the market might not feel great for sellers wanting their homes sold in just a few days, home shoppers have choices again and can take their time choosing the best home for their needs. With inventory growing, some sellers have found that they have to reduce prices or offer incentives, sometimes both, to get potential buyers to choose their home over a neighbor’s. But did the market “flip” to a “buyer’s” market? Not yet.
According to the Collin County Association of Realtors, while contract numbers declined slightly for the month of June, and inventory had increased by about 43% in the first 5 months of 2019, June’s projected sales were up just under 1%, while new listings were slightly down for the first time all year. June’s inventory was about a 3.6 months supply of homes, meaning if nothing new were listed for sale, at current demand it would take just over 3 and a half months for everything on the market today to sell out. 6 months is considered a balanced market.
If we break the inventory numbers down by price range, we begin to see a slightly different picture. The inventory of homes under $200,000 is only 2.1 months of supply, and many of those homes are either small, in need of work, or far from major employers (meaning long commutes in exchange for that lower price). Homes from $200-$300,000 are just slightly more available at 2.8 months. Again, many of these are going to be in outer suburbs or smaller homes. Once we look at homes priced over $400,000, however, we do begin to see inventory over 6 months (6.9 to be exact). Most market shifts will start in higher price ranges and trend downward. Entry-level priced homes, though, will almost always be in demand.
Sellers may not be getting multiple offers much anymore, but homes that are priced right, and in good condition are selling in a reasonable amount of time still. Choosing a strong agent with a solid marketing plan is more important now that sellers are competing with one another as well. Buyers that got tired of the competition, or weren’t able to fork over extra cash just to get somewhere to live are coming back out and finding that home buying isn’t as difficult as it had been in previous years and negotiations are on the table once again.
This market may feel strange for those that didn’t work in real estate or own homes prior to 2012 when the inventory shortages began. But rest assured, the sky is not falling. This is what a normal, healthy market looks like. With more new companies coming to the Dallas-Fort Worth metroplex every day, and unemployment remaining low, home sales are bound to continue at a steady pace.
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Christy grew up in West Texas and is a graduate of Texas Tech University with a bachelor’s degree in Family Studies. She and her family have been residents of The Colony, TX for 3 years and are very....