DFW Market Update

Dated: July 24 2019

Views: 263

     Image title      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.  

 

Contact a GroupWatson Agent TODAY for Professional Advice & Expert Direction.

~Experience the GroupWatson Difference~

Call or Email Today!

972.370.1775 | BuyOrSell@GroupWatson.com

*GROUPWATSON'S FEATURED LISTING OF THE WEEK*

2109 Newton Ln, Mckinney TX 75071


Image title


Blog author image

Christy Hoisington

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....

Latest Blog Posts

Is It Time To Upgrade Your Thermostat

Your thermostat plays an important role in keeping your home comfortable throughout the year. After all, the thermostat is the central hub for controlling the temperature you want to keep your home

Read More

Technology Drives 4 Newest Home Design Trends

Customized appliances, vertical laundry room setups, and an increasing number of wellness-inspired home design options were on display Monday at the virtual CES 2021, which runs through Friday.

Read More

Are You Ready For Smarter Home Security

As smart devices become more common, it’s no surprise to find homeowners who have opted to upgrade to smart thermostats or replace some of their lights with smart LED bulbs. While gadgets like

Read More

Thinking Of Remodeling Take Into Account The Effect On Your Insurance

Remodeling your home can affect your homeowners insurance in several ways, and it may be helpful to talk with your insurance agent before the project begins. Will Your Home Be Covered During

Read More