More homes in the Dallas-Fort Worth area are selling above the listing price than in any other market in the nation, according to the Dallas Business Journal.
Dallas-Fort Worth’s housing market had the largest increase in the U.S. of the close-to-list price ratio, which shows the relationship between list price and sales price, according to a Re/Max National Housing Report. For DFW, the ratio was 104.7 percent in May 2022, compared with 98.4 percent in May 2021, a 6.4 percent change. When the ratio is above 100 percent percent, that means more homes closed for greater than original list price, and vice versa if the ratio is below 100 percent.
Demand has outstripped the supply of available homes for sale in Dallas-Fort Worth, with the median home sale price rising to $490,000 as of May, a gain of 20 percent from a year earlier.
“Since 2020, we have been in a crazy seller’s market with home prices increasing year over year over 20 percent,” said Michael Coburn, broker/owner of Re/Max Town & Country, who remarks the North Texas housing market is shifting fast as interest rates and stock market volatility rise.
“This was due to very high buyer demand, low inventory of existing and new homes, low-interest rates, a good economy, low unemployment and a high stock market. That’s changing very quickly.’’
Last year and earlier this year, sellers would frequently put houses on the market one day and have multiple offers at above the list price only a few days later, Coburn said.
Now, however, sellers are using accurate comps and listing their homes at reasonable prices, according to the publication, and Coburn said he is seeing a lot more price reductions and properties staying on the market for a long time.
“This by no means is a bubble about to pop. It’s just a long-overdue correction in the market,” he said.
[Dallas Business Journal] — James Bell