Austin and Dallas are now buyer’s markets
Oh, how the tables have turned
Austin and Dallas are buyer’s markets.
The two Texas metros are the no.4 and no.10 buyer’s markets in the country, according to the latest Buyer-Seller Market Index released by home loan provider Knock. The index considers six measures: the ratio of average sale to asking price, number of homes sold, number of active listings, median days on the market, median sale price and the rolling supply of homes in a given month.
One year ago, all four major metro markets in Texas were classified as seller’s markets. Now, Austin and Dallas are projected to shift from “favors buyers” to “strongly favors buyers” within the next year, the Dallas Business Journal reports. What’s more, Dallas is predicted to be the nation’s sixth-best market for buyers by next year. Meanwhile, Austin is expected to remain the fourth-best buyer’s market a year from now. As for the other major Texas markets, San Antonio is predicted to be 16th-best come October 2023, while Houston is forecast to remain a seller’s market by that time.
Overall, the index ranked Phoenix as the top market in the nation for buyers; San Francisco is second; and Salt Lake City third. The top 10 markets for buyers — Austin and Dallas included — typically had longer-lasting inventories and higher days on market. The median amount of time for a home to sell is 25 days in Dallas and 38 days in Austin, according to the index.
“The housing market has borne the brunt of the Fed’s attempt to control inflation,” Knock co-founder and CEO Sean Black said. “At the same time, it has continued to demonstrate its resiliency.”
Sellers are still in charge in most of the nation’s largest metros, with many markets poised to favor sellers well into 2023, Black noted. By October, it’s predicted that 26 U.S. markets will be buyer’s markets, while 38 will be in seller territory, and 36 will be neutral. The shift toward buyer’s markets is being driven by a number of key housing market metrics — declining home sales chief among them.
“With interest rates stabilizing in recent weeks and less competition, buyers may begin to re-enter the market over the next few months,” he said, “which could result in a return to a more normal spring home-buying market.”
— Maddy Sperling