Winter is coming: DFW resi market getting colder

Dallas-Fort Worth just notched its largest drop in home sales this year, with a month-to-month drop in prices adding to the cooling trend.

Home sales for September in the metroplex dropped by 11.7 percent from August and nearly 21 percent from the same time last year, the Dallas Business Journal reports.

The median home price took a major hit as well between August and September. The median in Dallas-Fort Worth in September stood at $399,000— down $6,000 from the median of $405,000 in August.

The month-to-month decline is new for the market, which has been running hot since the pandemic. The dip in September still left the median price 14 percent above the year-ago level of $350,000, according to the latest Re/Max National Housing Report.

A total of 8,111 homes were sold across the metroplex in September, compared to 10,223 in September 2021. Just in the span of a month, the number of home sales dropped 11.7 percent from the 9,182 sold in August. While it’s not unheard of to see some seasonal decline from August to September, the regional decline for Dallas-Fort Worth went beyond the typical seasonal dip. Nationwide, September home sales declined 9.7 percent from August across the Re/Max report’s 53 metro areas.

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Local broker Michael Coburn, owner of Allen-based Re/Max Town & Country, says these numbers are evidence of a cooling market driven by mortgage costs.

“Sellers who are still on the market need to be realistic about pricing their homes — the days of bidding wars and buyers offering over asking price are behind us,” he said. “That type of market was not sustainable long term.”

Right now, the average home in Dallas-Fort Worth is on the market for 34 days— 10 days longer than a year ago.

For a long time, a tight inventory has kept sellers in control of the North Texas market, but the tables have turned. The supply of homes on the Dallas-Fort Worth market has gone from one month a year ago to 1.9 in August. Now it’s got a 2.4-month supply. In other words, there’s now an active inventory of 18,967 homes compared to 8,825 homes on the market in September 2021.

Last September, the average seller in the metroplex was getting 101 percent of their asking price. Now, homes are closing at 98 percent of the initial asking price

“Buyers still looking will find a less competitive market and more options,” he said. “You may pay more for your mortgage rate, but you will not overpay for a home in the current market.”

— Maddy Sperling